Enabling investment and innovation
Spot market settlement on real-time pricing
We have decided to implement our dispatch-based, look-ahead design for real-time pricing to make wholesale spot prices more certain, more accurate, and more efficient.
Overview
On 1 November 2022, we changed the way spot prices for electricity are calculated and published so everything is done to better reflect real-time market conditions. It’s the biggest change to the wholesale electricity market since it started in October 1996.
Prior to November 2022, spot prices were indicative only, with the final prices confirmed two days later. Under real-time pricing, spot price information is updated at the end of each half-hour trading period. A time-weighted average of prices is published as the final price for that trading period. This new price certainty means consumers can act confidently to avoid high prices.
On 27 April 2023, the second phase of our real-time pricing project went live with:
- enhancements to the current dispatchable demand regime to better reflect the physical characteristics of industrial load
- dispatch notification participation for aggregated demand response and distributed energy resources (minimum resource sizes may apply at the system operator’s discretion).
We would like to thank all those who provided feedback on our latest consultation to enhance and clarify the dispatch notification product. After considering all feedback, we decided to amend the Electricity Industry Participation Code to implement our three proposed amendments. Read our decision paper.
Find out about the final phase of RTP, read our RTP explainer and watch our video below:
Timeline
-
26 January 2024
Decision —Code amendment for dispatch notification
-
-
-
-
1 November 2022
Implementation —RTP effective - wholesale market prices in real time
-
12 October 2022
Event —The system operator hosted a pre-release information session ahead of the 18 October RTP software deployment
-
27 September 2022
Decision —Code amendments for RTP implementation
-
27 June 2022
Notice —Dispatchable demand and dispatch notification enhancements to be released in April 2023
-
-
-
-
-
-
-
-
-
20 October 2020
Event —First webinar in our upcoming series - 'What is Real Time Pricing and why it is important'
-
18 October 2020
Development —RTP software deployment
-
12 October 2020
Event —Information session with Transpower on RTP software development. Watch the webinar.
-
August 2020
Decision —Board approval for software build
-
26 May 2020
Update —Design work continues and industry engagement sessions being planned
-
24 February 2020
Update —Refining the market systems design with service providers
-
28 June 2019
Decision —Code amendment to implement RTP in the wholesale market
-
2 April 2019
Event —Public briefing on remaining elements of real-time pricing. Watch the briefing.
-
2 April 2019
Development —Risk violation curve design - technical material
-
19 March - 30 April 2019
Consultation —Proposal for the design of the remaining elements of real-time pricingView consultation -
-
September 2017
Correspondence —Responses to RTP questions from stakeholders
-
August 2017
Event —Briefings on our RTP proposal - Auckland and Wellington
-
Project background
The Electricity Authority regulates the electricity industry for the long-term benefit of consumers. Unlocking the potential for more renewable energy is one of the ways we can do this, as part of our strategic ambition of low-emissions energy.
A cleaner mix of energy will require large quantities of new renewable electricity generation, increased use of distributed energy resources, new ways to participate and more participants – changing the dynamics of the electricity system as we know it.
We need a stable regulatory environment with robust rules and clear price signals. That is why this project focuses on introducing real-time pricing into the wholesale electricity market.
Real-time pricing delivers accurate and reliable spot prices published at the end of each half hour trading period, removing any guess work and encouraging more participants to take part in the market with certainty around costs and benefits.
Other projects in Enabling investment and innovation
View all projectsNetwork connections
Improving the efficiency of connecting to the distribution network and upgrading existing connections.
Distribution connection pricing reform
Improving connection pricing methodologies so they’re more efficient with greater consistency across distributors.
Energy Competition Task Force
Investigating actions to strengthen the performance of the electricity market for the benefit of all consumers.