1. This notice of a recommendation concerning the Electricity Governance Rules 2003 (“Rules”), Rule Amendment Proposal No. 75, is issued by the Electricity Commission (“Commission”), established under the Electricity Act 1992 (“Act”), pursuant to section 172E (2) (c) of that Act.
2. Section 172E (2) (c) of the Act provides that, no later than 10 working days after making a recommendation concerning the Rules to the Minister of Energy, the Commission must publicise the recommendation and
the assessment completed under section 172F of the Act.
Recommendation
3. On 13 March 2006, the Commission made a recommendation that Rules 6.3 of Section II, 8.3.2,
8.3.3 and 2.14 of Section IV and forms 1, 2, 3, and 4 of Schedule G1, all of Part G, be amended, and new Rules
6.24 of Section II and 8.3.4 of Section III of Part G be inserted into the Rules.
4. Section 172F (3) provides that the Commission is not required to comply with section 172F (1) (which relates
to carrying out an assessment) if it is satisfied that the effect of the recommendation is minor and will not adversely affect the interests of any person in a substantial way. In reliance on section 172F (3), no such assessment has been carried out under section 172F (1) of the Act.
Recommended Amendments to the Rules
5. The recommended amendments to the Rules were to:
(a) remove from the Rules the requirement for generators to submit offers for maximum partly loaded spinning reserve and maximum tail water depressed reserve via COMIT;
(b) allow offers that are made prior to the must run dispatch auction to be made at zero price;
(c) remove the “good till cancelled” option on offer and bid forms, as it is made redundant by other existing Rules; and
(d) clarify how generators make additional offers, and ancillary service agents make additional reserve offers, during a grid emergency.
A copy of the Commission’s recommendation is available, at no cost, on the Commission’s web site:
http://www.electricitycommission.govt.nz/rulesandregs/recommend
Dated at Wellington this 13th day of March 2006.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.