Electricity Authority Lodges Formal Complaint Over Alleged Code Breach

The Electricity Authority Te Mana Hiko (Authority) has lodged a formal complaint with the Rulings Panel alleging a breach of the Electricity Industry Participation Code 2010 (Code) by Genesis Energy Limited.

The Authority alleges Genesis failed to comply with dispatch instructions in respect of Huntly unit 5 and that it failed to immediately advise the System Operator of a bona fide physical reason (for plant safety) in relation to why Huntly unit 5 was unable to comply with the issued dispatch instructions on 26 January 2024 in breach of clauses 13.82(2) and 13.82(3) of the Code.

Dispatch instructions are the instructions the System Operator issues to generators to provide generation. Compliance with dispatch instructions is critical for:

• maintaining the stability, reliability and efficiency of the power system
• ensuring sufficient electricity supply to meet demand at all times
• ensuring fair and transparent operations and avoiding the risk of price distortion.

If generation is suddenly unavailable (for example, through an unexpected outage), this can have a flow on effect such as a localised cascade failure of the power system and regional loss of supply.

The Code requires generators to comply with dispatch instruction and to communicate with the System Operator if issues arise.

The Rulings Panel is an independent body that determines breaches of the Code and may make appropriate remedial orders under section 54 of the Electricity Industry Act 2010.

If the Rulings Panel upholds a complaint, it has the power to make remedial orders against industry participants. Remedial orders include pecuniary penalties, compliance orders, compensation orders, and private and public warnings or reprimands.

The liability limit applying to industry participants in breach of Part 13 of the Code is limited by the Electricity Industry Act 2010 to a pecuniary penalty not exceeding $2 million and a further amount not exceeding $10,000 for every day or part of a day during which the breach continues.

More detail

Full details of the complaint are outlined in this notice : R29 Notice - Rulings Panel referral - Genesis - https://www.ea.govt.nz/documents/9085/R29_Notice_Rulings_Panel_referral_Genesis_Huntly_unit_5_dispatch_non_compliance.pdf

Notes:

The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.

© Scoop Media