Greater Access To Thermal Fuel Generation Information Will Boost Confidence And Competition
Electricity Authority: Greater access to thermal fuel generation information will boost confidence and competition in the wholesale electricity market
The Electricity Authority is reviewing the rules around thermal fuel generation information disclosure to increase confidence and competition in the wholesale electricity market.
Today the Authority released a consultation paper detailing some proposals that would improve access to thermal fuel generation information for all market participants.
“The rules in the Code already require participants to disclose information about themselves which could have a material impact on electricity prices on the wholesale market.
However, we want to find a way to ensure parties have more equal access to information to improve the efficiency of trading decisions and prices. We know that in practice there are some gaps: this project is working on closing those gaps,” said Rob Bernau, General Manager, Market Design at the Authority.
“Market competition is a key enabler to deliver a better energy future – it drives innovation, affordability and efficiency for New Zealand. Equal access to information is critical to efficient and well-functioning markets.
Thermal fuel information is a key driver of power prices. Better access to thermal information can help build a greater level of confidence for market participants. More visibility of market activities gives participants better information to manage risk. This in turn should lead to increased competition which will ultimately benefit consumers in the long-term through more efficient electricity prices,” said Bernau.
The consultation paper has four proposals. The first includes amending the rules to introduce a new reporting regime. The three other proposals are aimed at improving awareness and accessibility of information.
The Authority’s wholesale market information disclosure project is part of a wider suite of work that promotes wholesale market competition, along with its review of market making, work on the profitability of the retail arms of the generator-retailers, and the work on the trading conduct rules being performed by the Authority’s Market Development Advisory Group. Together with the current UTS investigation, this work will collectively help parties to be increasingly confident in wholesale market competition, the efficiency of prices and the forward curve they produce.
The consultation paper, Wholesale Market Information Disclosure, Review of Thermal Fuel Information Disclosure can be read on the Authority’s website.
Consultation closes on Tuesday, 1 September.