1. This notice of a recommendation concerning the Electricity Governance (Instantaneous Reserve Dispatch) Amendment Rules 2010 is issued by the Electricity Commission ("Commission") pursuant to section 172E(2)(c) of the Electricity Act 1992 ("Act").
2. The Act provides that, no later than 10 working
days after making a recommendation to the Minister
of Energy and Resources ("Minister") concerning
the Electricity Governance Rules 2003 ("Rules"), the Commission must publicise the recommendation.
Recommended Amendments to the Rules
3. On 5 February 2010, the Commission recommended
that Part A, Schedule C6 of Part C, Rules 5 and 6 of Section V of Part G, and Schedule G2 of Part G
be amended. The Commission has recommended that these amendments be made under urgency in reliance
on section 172E(3) of the Act.
4. The recommended amendments to the Rules were to improve system security by:
(a) improving the dispatch of instantaneous reserve where there is insufficient instantaneous reserve; and
(b) ensuring the providers of instantaneous reserve
are compensated, thus incentivising providers of instantaneous reserve to participate in the market.
5. Section 172E(3) of the Act provides that section 172E(2)(b) and section 172F (which relate to consultation and assessment) do not apply if the Commission considers that it is necessary or desirable
in the public interest that the recommended rule amendments be made urgently. Instead, consultation
and an assessment must be carried out within six months of the amendments being made. In reliance on section 172E(3), no such consultation or assessment has been carried out at this stage.
A copy of the Commission's recommendation is available, at no cost, on the Commission's website at
http://www.electricitycommission.govt.nz/rulesandregs/
recommend
Dated at Wellington this 9th day of February 2010.
For and on behalf of the Electricity Commission:
DAVID CAYGILL, Chair.