1. Pursuant to section 172I of the Electricity Act 1992 (“Act”), I notify the amendment of the Electricity Governance Rules 2003 (“Rules”) under section 172H of
the Act.
2. The empowering provisions for the Electricity Governance Regulations in relation to which the amendments to the Rules are made are sections 172D(1)(1) of the Act.
3. The amendments introduce a mechanism to:
(a) detect high spring washer price situations (“HSWPS”);
(b) publish provisional prices if a HSWPS is detected;
(c) review all transmission security constraints, identify the constraint with the highest constraint price and relax that constraint by the greater of 1MW or 1% of the constraint value; and
(d) publish final prices based on revised constraint data.
4. Pursuant to section 172Z(4) of the Act, the reason for my decision to amend the Rules is that the rule changes will increase market participant confidence that HSWPS are not sensitive to the minor inaccuracies that occur when modelling the dispatch solution.
5. These Rules come into force on 3 September 2007.
6. Copies of the Rules may be inspected free of charge or purchased from the Electricity Commission, Level Seven, ASB Bank Tower, 2 Hunter Street, Wellington. The Rules can also be viewed on the Electricity Commission’s
website
http://www.electricitycommission.govt.nz/rulesandregs/rules
Dated at Wellington this 20th day of February 2007.
DAVID PARKER, Minister of Energy.