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Publication of risk management contract information

 This initiative requires market participants to publish key details of their risk management contracts.

To date the Commission has:

 

Consultation

The Commission has developed a proposal and draft rules to implement this initiative. Submissions were sought on the consultation paper and the closing date was 21 September 2007.

Briefing

The Commission thanks the people who attended the disclosure of risk management contract information briefing held on 11 September 2007.

A number of interesting questions and suggestions were raised by attendees during the briefing. These have been summarised in an information sheet along with initial comments from the Commission. In addition, during the briefing the Commission sought feedback from attendees on alternative criteria for the disclosure of contract information.

First Update Report

A first update report pdf [481 KB] was released to brief Participants and interested parties on the submissions received in response to the Disclosure of Contract Information Consultation Paper and to provide an update on changes which have subsequently been made to the original proposal (referred to as the revised proposal)

The revised proposal in the first update report represents the Electricity Commission’s desire to implement a regime which best incorporates Participants’ varying positions on risk management contract disclosure.  The Commission believed the revised proposal was an appropriate trade off between maintaining anonymity and providing a useful level of disclosure. 

Submissions received on first Update Report

The Commission received three submissions on the First Update Report. 

Second Update Report

A second update report pdf [199 KB] was released to brief Participants and interested parties on the three submissions received in response to the First Update Report and provided an update on further changes to the proposal.

Submission received on second Update Report

The Commission has received one submission on the second Update Report.

First System workshop

In anticipation of implementing the proposal, the Commission, in collaboration with the Wholesale Information and Trading System service provider (M-co),held the first of the two system workshops on 10 July 2008.

A number of questions and suggestions were raised by attendees during the workshop. The Commission has considered these.

During the workshop the Commission provided an indicative timeline (available in the presentation) for implementing the disclosure system.

Second System workshop

Further progress on the development of the software has been made and therefore a second workshop was held on 18 August 2008.

A number of questions and suggestions were raised by attendees during the workshop. The Commission has considered these.

Third update report

The Commission published a third update report on the proposal to disclose risk management contract information. The report specifically commented on feedback received in response to the second update report on the disclosure of risk management contract information proposal as well as the two workshops held, and provided an update on the changes that were subsequently made.

No submissions were received.

New Rules come into force on 2 February 2009

The Minister has approved the new rules on the disclosure of risk management contract information. The new rules will come into effect on Monday 2 February 2009.

Market Trial

The Commission has completed a market trial to allow interested parties to test the disclosure of risk management contract information system. A number of comments were raised by trial participants. The Commission has considered and responded to these.

The trial website can still be assessed via: http://hedgetest.m-co.co.nz/

Draft information sheets

The Commission has drafted two information sheets on the disclosure of risk management contract information regime. One information sheet is an overview of the regime and the other is a more detailed description of the regime that includes examples of contract price calculations. The Commission welcomes comments on these information sheets. Comments should be emailed with ”Disclosure information sheets” in the subject header to submissions@electricitycommission.govt.nz.

Last update on 19 December 2008 10:24 AM