1. This notice of a recommendation and assessment concerning the Electricity Governance (Policy Statement) 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 concerning the Electricity Governance Rules 2003 ("Rules"), the Commission must publicise the recommendation and the assessment.
Recommended Amendments to the Rules
3. On 14 June 2010, the Commission recommended that the existing policy statement in Schedule C4 of Part C
of the Rules be replaced in its entirety with a
new Schedule C4. The changes in the recommended new Schedule include:
(a) commitments by the system operator to:
(i) provide participants:
- at least two weeks’ notice of the implementation of permanent security constraints; and
- as much notice as reasonably practicable of temporary security constraints, including in its notice the reasons why it is required;
(ii) schedule all available reserve in the event of a shortage of energy and reserve;
(iii) send participants a standby residual shortfall notice only when the shortfall exceeds a threshold specified by the system operator;
(b) significant changes to the list and categorisation of credible events, which represent an advance in the system operator’s assessment of the appropriate economic arrangements for dealing with contingencies;
(c) removing the requirement for the system operator to publish standby residual shortfall input data, which
is the information used to formulate the standby residual shortfall notices;
(d) providing the system operator flexibility to change the default constraint threshold percentage prior
to the implementation of the simultaneous feasibility test software;
(e) a correction that makes it clear the fixed load distribution factors may be derived from the previous fortnight’s meter readings (rather than solely from the previous week’s); and
(f) several minor drafting amendments.
4. A copy of the Commission’s recommendation and assessment is available, at no cost, on the Commission’s website at
http://www.electricitycommission.govt.nz/rulesandregs/recommend
Dated at Wellington this 11th day of June 2010.
For and on behalf of the Electricity Commission:
DAVID CAYGILL, Chair.