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Rules and regulations

Electricity Governance Regulations

Electricity Governance Rules

These Rules are as at 1 February 2010.

 

Rule change spreadsheet

The spreadsheet below lists:

  • rule changes
  • page numbers affected for printing purposes
  • gazette date
  • proposal number

Rule change spreadsheet 1 February 2010 pdf [21 KB]

Electricity (Levy of Industry Participants) Regulations 2005

The new Electricity (Levy Industry Participants) Regulations 2005.pdf [585 KB] came into force on 21 April 2005 and impose a levy on electricity generators, wholesale purchasers, and electricity distributors (including Transpower) for the costs of the Commission performing its functions, powers, and duties.

These regulations were amended from 1 May 2008 by the Electricity (Levy of Industry Participants) Amendment Regulations 2008 pdf [187 KB]

Electricity Governance (Security of Supply) Regulations 2008

 

Electricity Governance Rules (Rules)

The Commission inherited a set of rules from the electricity industry’s self governing arrangements which existed prior to its establishment. The Commission has been charged with developing those rules to ensure the best conditions exist for workable and effective competition and to ensure that the government’s other objectives for the electricity sector are met.


The electricity governance rulebook

The rules are set out in a document known as the rulebook.

The rulebook replaced a number of industry arrangements which previously governed the wholesale market and aspects of the retail market, and provided for the establishment and delivery of grid security in real time.

The rules set out various market-participant responsibilities, the Commission’s duties and responsibilities as well as a number of decisions relating to Transpower and the transmission grid. The rules are segmented into a number of parts which relate to various sections of industry operations and markets. Parts A,C,D,E,G,H and I, relate to interpretation, common quality, ancillary services, metering arrangements, registry information and customer switching, reconciliation, transport, trading, pricing, dispatch, clearing and settlement and transition. These parts were approved by the Minister of Energy on 18 December 2003 and parts A,G,H and I took effect on 16 February 2004 and parts C,D and E took effect on 1 March 2004. Part F, dealing with transmission issues only, came into force in May 2004. Part J relates to reconciliation and came into force on 1 May 2008.

The Commission maintains the rulebook, which supports the operation of the electricity markets. Administration of the rules is a significant part of its day-to-day workload. The Commission is responsible for ensuring market participants comply with regulations and rules. The Commission also grants exemptions and makes rule changes to enhance the workability of market arrangements as necessary.

The Commission and participants work together to improve the rulebook in order to reduce compliance and transition costs and improve market systems.


Electricity Governance Rules 2003

Part A – interpretation of the rules and regulations.

Part B – reserved for future use.

Part C – common quality, in particular, concerning the principal performance obligations of the system operator, the performance obligations of asset owners, arrangements concerning ancillary services and technical codes.

Part D – obligations of market participants in relation to metering standards including the handling of meter readings. The accuracy of meters and the integrity of the data obtained from meters underpin the market transactions.

Part E – management of the processes and the information required to enable consumers to switch between competing retailers.

Part F – governing the establishment of transmission agreements between Transpower and its customers, the framework for assessing and approving
(or not) transmission investment, the process for developing and approving a transmission pricing methodology and provision for the development of Financial Transmission Rights.

Part G – trading, dispatch, and settling of wholesale prices.

Part H – maintain adequate levels of security and the settlement of the sale and purchase of electricity and ancillary services.

Part I – interim dispensations, existing quality agreements, existing ancillary service arrangements and the process for transition from MARIA and NZEM.

Part J - reconciliation of electricity.

EGR Committee

The creation of effective electricity regulations and rules is one of the Commission’s core functions. This led to the establishment of the Commission’s EGR Committee.

The Committee is responsible for:

  • initial fact-finding on rule breaches;
  • formal investigations into rule breaches;
  • oversight of the informal settlement process;
  • recommending to the Commission that alleged rule breaches be referred to the Rulings Panel;
  • granting of exemptions; and
  • advancing minor rule changes.

The Committee takes a pragmatic approach to compliance, issuing warning letters to market participants over minor breaches rather than instigating formal investigations for matters with minimal or no market impact.

Members of the EGR Committee are Commission members Peter Harris (chair), Linda Constable and Roger Sowry.

Last update on 01 February 2010 08:42 AM