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Market Design Review

Index

Introduction

As foreshadowed in the Statement of Intent for 2006-09, the Electricity Commission has commenced a Market Design Review project to review the performance of the electricity market, and identify any modifications that maybe desirable to improve its performance.

A flyer "market design review " pdf [30 KB] explains the context, objectives, scope and timetable of the review.

The Commission is encouraging strong stakeholder input into the initiative – at both the problem definition and solutions stages of the work programme.  As well as input via written submissions, the Commission expects to provide opportunities for input through conferences and/or briefings as the initiative progresses. The Commission is currently consulting on the Options paper (more details below). The Commission has released a media statement.

Further information about the Market Design Review Issues Paper consultation

Submissions were sought for the consultation. The closing date for submissions was 20 July 2007 after an extension of time to allow time for the Commission to host public briefing sessions on the information contained within the issues paper.

Issues Paper public briefings

Public briefings were held in Wellington and Auckland during July 2007. The objective of the public briefings was to present the information contained within the issues paper in advance of respondents finalising their written submissions to the Commission. Questions and comments will be encouraged during the briefing sessions.

As is the case with the issues paper, the briefings focused on identifying problems with the wholesale and retail markets and not on solutions. All interested parties will have the opportunity to suggest and comment on solutions at a later stage of the project.

Issues Paper update reports

The Commission has prepared a Market Design Review - Update Report, dated 4 October 2007. This report presents:

  • the Commission’s initial views on the areas where improvements might be possible to the current design of the electricity market; and
  • the broad direction of work that the Commission intends to pursue in the next stage of the Market Design Review
Report - 4 October 2007 pdf [208 KB]

Options Paper consultation

Submissions were sought for the consultation. The closing date for submissions was 1 September 2008.

Public briefing - Market Design Review: Options paper

The Commission held a public briefing on the morning of Tuesday 12 August 2008 in Wellington. The objective of the public briefing was to present the information contained within the Options paper in advance of respondents finalising their written submissions to the Commission.

 

Market Design Review: Retail Model

The Retail Model (spreadsheet) used to derive the graphs within chapter 3 "Competition and pricing issues" of the Market Design Review: Options Paper is available for download.


This has been made available in response to requests from industry participants and other interested parties.

The Commission is not specifically seeking feedback on the Retail Model. It is made available as useful information that may assist parties to prepare their submission on the Options Paper.

There are a number of important caveats described below that parties should be aware of before downloading and utilising information contained in the Retail Model:

  • The Retail Model has been amended to remove or replace information provided to the Electricity Commission in confidence. Therefore, some of the graphs and analysis will not exactly match the information presented within the Options Paper. More information on the effects of removing confidential data is provided within the Retail Model itself.
  • The Retail Model was developed to be a working tool rather than for general use. Accordingly, the Retail Model is not user-friendly and assumes the user has a high degree of understanding of both the underlying issues, and spreadsheet and visual basic coding.


Given the caveats outlined above, no representations are made as to the accuracy of the Retail Model, and the Commission and its advisors cannot be held liable for the consequences of any decisions made by parties using the Retail Model and/or the information within it. 

Related work being carried out by the Commission

The Commission is carrying out ongoing development work across security of supply, wholesale, retail, and common quality and system operation workstreams.  Some key related projects are:

Useful background to the review
Last update on 16 September 2008 01:11 PM