Standardised Flexibility Product Co-design Group

The Standardised Flexibility Product Co-design Group works with the Authority to develop flexibility products for the wholesale electricity market.

Role

The Standardised Flexibility Product Co-design Group worked with the Authority to develop flexibility products from October to December 2024. The group's work was reviewed by a subgroup of the Electricity Authority Advisory Group.

The group developed a new standardised super-peak hedge contract. It's a risk management tool for wholesale market participants, enabling them to manage spot price risk during the periods when demand is likely highest (mornings and evenings), and intermittent generation (eg, solar farms) may be low. This will provide more information about future electricity prices to inform investment decisions. Ultimately, consumers will benefit from more efficient competition and more affordable electricity supply for New Zealanders. Learn more: Energy Competition Task Force announces new standardised super-peak hedge contract - trading begins in January

The Authority will use the revised Hedge Disclosure Obligations to monitor trade in both standardised and non-standardised flexibility products. When trading begins in early 2025 the Authority will measure and publish information about flexibility contracts trading as part of a broader suite of competition indicators. This information will inform the decision to implement stronger pro-competition measures if necessary.

The introduction of standardised flexibility products is a key priority for the Electricity Authority. The recently established Energy Competition Task Force has included this project as a key measure to enable new generators and retailers to enter and compete in the market. This work also implements recommendation 8 from the Market Development Advisory Group’s final report on Price Discovery in a Renewable-Based Electricity System.

Members

The group is made up of eight members appointed for a three-month term by the Electricity Authority (starting 30 September 2024) to represent a range of sector knowledge and experience.

  • Shaun Goldsbury, BraveTrace, CEO - Chair
  • Karl Arns, emhTrade Markets, OTC Solutions Manager/Sales Trader
  • Tim Boyce, Contact Energy, Head of Wholesale Markets
  • Matt Carnachan, Hiringa Energy, Head of Trading and Energy Markets
  • Nick Haines, The Energy Collective, Group CFO
  • Michael Jefferson, Enel X, Head of Development and Innovation
  • Paul Morrison, Meridian Energy, Financial Product Owner
  • James Tipping, Vector, General Manager Market Strategy/Regulation

Meeting minutes

The minutes of meetings are published here once approved at a subsequent meeting.

Key documents