Risk and risk management

This programme covers initiatives to promote efficient management of capacity and energy risks. This programme aligns with our increase flexibility and resilience strategy.

Current projects

  • Wholesale Market Information Disclosure

    This project reviews the disclosure of information in the electricity market.

    Latest Activity: 20 Oct – 03 Nov 2020 Consultation on revised guidelines on wholesale market information disclosure

  • Hedge market development

    The hedge market development project monitors and supports industry progress on improving hedge market activity.

    Latest Activity: 22 Sep 2020 Decision paper on securing access to exchange data

  • Internal transfer pricing and profitability

    We sent letters to the five largest vertically integrated generator-retailers asking them to voluntarily provide information on their internal transfer pricing.

    Latest Activity: 25 Aug 2020 Authority investigates internal transfer pricing and profitability of large generator-retailers

  • Review of regulatory settings for Official Conservation Campaigns (OCCs)

    We are reviewing aspects of the settings for OCCs.

    Latest Activity: Jun 2020 South Island-only official conservation campaigns to remain in place

  • Extended Reserve

    This project is about how electricity distributors and direct connect consumers provide extended reserve using automatic under-frequency load shedding (AUFLS).

    Latest Activity: 17 Apr 2020 Response to Distributor feedback on the system operator AUFLS data requirements

  • Determinations of who caused under-frequency events

    Determinations of who caused under-frequency events

    Latest Activity: 10 Sep 2019 Final determinations of who caused the December 2018 under-frequency events

  • Efficient procurement of extended reserve

    We are considering options to improve the way in which extended reserves are procured.

    Latest Activity: 17 Apr 2018 Extended reserve project update

  • Winter energy and capacity margins review 2017/2018

    Latest Activity: 27 May 2017 Development on winter energy

  • Normal frequency management - Strategic review

    The Authority is reviewing the arrangements for managing normal frequency. Matters to be considered include the asset owner performance obligations for generators, the proposed national market for frequency keeping, cost allocation and dispatch processes

    Latest Activity: 28 Mar – 09 May 2017 Information paper: Normal Frequency Management - Strategic Review

  • Review of Stress Test regime

    We reviewed the stress test regime, called the Spot Price Risk Disclosure requirements, which are contained in Part 13 of the Code. We want to assess whether the regime continues to provide appropriate signals and incentives to retailers and consumers

    Latest Activity: 1 Mar 2016 Background of stress test review

  • Review of the customer compensation scheme (CCS)

    We reviewed the customer compensation scheme (CCS) set out in Part 9 of the Code to assess whether it continues to provide appropriate signals and incentives to retailers and consumers under evolving market conditions.

    Latest Activity: 1 Mar 2016 Background on CCS

  • National market for frequency keeping

    This project has arisen, in conjunction with the Multiple Frequency Keepers (MFK) Project because the cost of frequency keeping services has increased significantly in recent years.

    Latest Activity: 13 Aug 2013 Project brief

  • National market for instantaneous reserve

    We are progressing a project to enable instantaneous reserve to be procured in a national market.

    Latest Activity: 1 Mar 2013 Background on instantaneous reserve

  • Review of instantaneous reserve (IR) markets

    This project reviews the fast instantaneous reserve and sustained instantaneous reserve (FIR and SIR) market arrangements and products to determine whether there are alternative reserve products and procurement methods that could be brought to the market

    Latest Activity: 10 May 2012 Under-frequency management project

  • Normal Frequency-Generator Asset Owner Performance Obligations

    A review has been undertaken of the obligations of generation assets to support frequency under normal conditions.

    Latest Activity: 17 Jun – 30 Jul 2010 Normal Frequency - Generator Asset Owner Performance Obligations

Completed projects

Fault ride through project Outcome: Completed:
The Authority decided to amend the Code to include fault ride through standards for generating units. The enabling Code amendment came into force on 24 November 2016. 24 Nov 2016
Managing Retailer Default Situations Outcome: Completed:
The Authority has made arrangements to facilitate the orderly resolution of a default situation when an electricity retailer becomes insolvent or otherwise exits the market and is unable to supply its customers.

Ongoing failure by a retailer to pay for electricity or distribution services can lead to increasing financial losses by generators and distributors and could lead to customers becoming stranded without a retailer.
To manage this possible situation regulated arrangements for managing a retailer default became operational in July 2014. 15 Jul 2015