Purpose of this paper
The Electricity Authority Te Mana Hiko (Authority) is seeking additional feedback from interested parties on our proposed clause 2.16 information notice to improve visibility of competition in the over-the-counter (OTC) contract market.
Additional consultation is necessary because our proposal has expanded in scope. We want to ensure parties affected by the expanded scope have the opportunity to make a submission.
What you need to know to make a submission
May 2025 consultation
The Authority consulted on a proposal to improve the monitoring and transparency of the market for OTC hedges in May 2025: Improving visibility of competition in the over-the-counter contract market: clause 2.16 information notice (May consultation).
The proposal included an information gathering notice under the Regular and Event-Driven Provision of Information to the Authority sub-part of the Code (clauses 2.16-2.24) to collect information on OTC requests for contracts and responses to those requests (proposed notice).
The consultation closed on 28 May 2025, and 12 submissions were received. All submissions have been published on our website.
Additional consultation
While non-integrated generators did not submit on our original consultation on the proposed notice, some submitted on the Energy Competition Task Force initiative 1A and 1D issues papers. Their responses to these consultations suggest that OTC pricing and accessibility issues are a concern for non-integrated generators as well, and that non-integrated generators may be supportive of increased monitoring of the OTC market.
After also considering the submissions received during the May consultation on the proposed notice, we now propose to expand the scope of the notice in two ways:
- to collect information from all generators (including non-integrated generators)
- to capture sell requests.
Given the Authority’s role in monitoring competition, applying the proposed notice to non-integrated generators and having visibility of both buy and sell requests will provide a more comprehensive view of participant behaviour and hedge options available across the sector. It will allow a consistent and integrated approach to monitoring all OTC bids and offers (including power purchase agreements (PPAs)) and will support any options progressed through the Energy Competition Task Force 1D options.
We are carrying out additional consultation to allow parties who are potentially affected by the expanded scope to submit on the proposal. It will be beneficial in this additional consultation process to see, and submit on, other proposed changes from the May consultation. These are detailed in section 4. The proposed clause 2.16 notice is set out in Appendix A with changes from the previous notice redlined in Appendix B (proposed amended notice). In addition to the two proposed changes above, it also includes proposed changes from the May consultation.
This paper should be read in conjunction with our initial consultation paper published on 6 May 2025: Improving visibility of competition in the over-the-counter contract market: clause 2.16 information notice.
If you have already submitted on the initial consultation, you may wish to provide additional feedback on this consultation.
How to make a submission
The Authority’s preference is to receive submissions in electronic format (through the Authority’s information provision platform info.ea.govt.nz) using the questions in Appendix B.
If you cannot send your submission electronically or would prefer to send a Microsoft Word submission, please contact the Authority (info@ea.govt.nz or 04 460 8860) to discuss alternative arrangements.
Please note the Authority intends to publish all submissions it receives. If you consider that the Authority should not publish any part of your submission, please:
- indicate which part should not be published,
- explain why you consider we should not publish that part, and
- provide a version of your submission the Authority can publish (if we agree not to publish your full submission).
If you indicate part of your submission should not be published, the Authority will discuss this with you before deciding whether to not publish that part of your submission.
However, please note all submissions received by the Authority, including any parts the Authority does not publish, can be requested under the Official Information Act 1982. This means the Authority would be required to release material not published unless good reason existed under the Official Information Act to withhold it. The Authority would normally consult with you before releasing any material you said should not be published.
When to make a submission
Please deliver your submission by 5pm on Thursday 24 July 2025. Authority staff will acknowledge receipt of all submissions electronically. Please contact the Authority info@ea.govt.nz or 04 460 8860 if you do not receive electronic acknowledgement of your submission within two business days.