Update to scarcity pricing settings
Consultation
We are seeking feedback on proposed amendments to the Electricity Industry Participation Code to update the scarcity pricing settings.
Our proposed Code amendment aims to:
- better reflect consumer expectations that power cuts should not occur while there is generation capacity available for dispatch
- better reflect the high cost of involuntary demand reduction on consumers and businesses
- improve price signals during periods of potential scarcity to assist with resource coordination and to continue to provide robust signals for investment in flexible capacity.
This update to the scarcity pricing settings is part of our ongoing approach to improve and refine the market settings for security of supply to ensure they are fit-for-purpose, reflect consumer expectations and improve long-term outcomes for consumers.
We will publish a decision by April 2025 so that the new settings can be applied in the market system before winter 2025.
Make a submission
We welcome submissions in the format shown in Appendix B to OperationsConsult@ea.govt.nz by 5pm on Friday 29 November 2024.
If you cannot send your submission electronically, please contact OperationsConsult@ea.govt.nz or 04 460 8860 to discuss alternative arrangements.
We wish to publish all submissions to be transparent. If you consider that we should not publish any part of your submission, please:
- indicate which part should not be published and explain why
- provide a version that we can publish (if we agree not to publish your full submission).