UTS 16 February 2024
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Overview
The Electricity Authority carried out an investigation into a possible undesirable trading situation (UTS) that arose following a High Court decision released on 16 February 2024.
The High Court decided scarcity prices were incorrectly applied to four trading periods on 9 August 2021. As a result of the High Court decision, prices on 9 August 2021 have been determined by offers and demand management by the system operator.
The Authority carried out an investigation into a possible UTS as a result.
Following the investigation, we have reached a preliminary decision that a UTS has developed and are now seeking feedback on this decision.
Our preliminary decision
Following an investigation into the possible UTS, our preliminary decision is that prices for trading periods 38 and 39 were artificially depressed by demand management, in circumstances where participants would expect higher prices to apply, and this threatens, or may threaten, confidence in the wholesale market.
Consultation
We invite feedback on the following preliminary decision paper, which sets out our investigation and findings, to uts.2024@ea.govt.nz by 5pm on 19 June 2024, with cross-submissions on the initial submission due 5pm on 3 July 2024.
