Undesirable trading situation claims

Undesirable trading situation claims

The Authority has received claims for the existence of an undesirable trading situation (UTS) from Norske Skog Tasman Limited and Mighty River Power Limited in respect of prices at the Kawerau nodes KAW0111, KAW0112 and KAW1101 from 8 March 2013. Prices for these days are currently interim and are subject to pricing error claims from both Norske Skog Tasman Limited and Mighty River Power Limited. These claims are in regard to data and technical issues with the pricing process.

Clause 1.1(1) of the Code makes it clear that a UTS does not cover any contingency or event that, in the reasonable opinion of the Authority, can satisfactorily be resolved by any other mechanism available under the Code. The Authority notes that the issues at claim are currently subject to the interim pricing mechanism described in clauses 13.167 to 13.182 of the Code, and may be satisfactorily resolved through that mechanism.

Once the Authority has notified the pricing manager of its decision on any pricing error claim, the pricing manager is required to publish that decision under clause 13.176 of the Code. If that decision upholds the pricing error claim, actions may be required by the pricing manager and relevant participants to enable the error to be corrected. Clause 13.179 requires a period of at least two hours between the pricing manager publishing the Authority’s decision and either republishing interim prices (if a pricing error has occurred) or publishing final prices (if a pricing error has not occurred).

• UTS claims

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