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)(3) and 172D(1)(4) of the Act.
3. The existing policy statement in Schedule C4 of Part C of the Rules will be replaced in its entirety with
a new Schedule C4. The key changes include:
(a) commitments by the System Operator to:
(i) provide participants:
- at least two weeks’ notice of the implementation of permanent security constraints; and
- as much notice as reasonably practicable of temporary security constraints, including in its notice the reasons why it is required;
(ii) schedule all available reserve in the event of a shortage of energy and reserve;
(iii) send participants a standby residual shortfall notice only when the shortfall exceeds a threshold specified by the System Operator;
(b) significant changes to the list and categorisation
of credible events, which represent an advance
in the System Operator’s assessment of the appropriate economic arrangements for dealing
with contingencies;
(c) removing the requirement for the System Operator to publish standby residual shortfall input data, which is the information used to formulate the standby residual shortfall notices;
(d) providing the System Operator flexibility to change the default constraint threshold percentage prior
to the implementation of the simultaneous feasibility test software; and
(e) a correction that makes it clear the fixed load distribution factors may be derived from the previous fortnight’s meter readings (rather than solely from the previous week).
4. Minor drafting amendments to various clauses have also been made, in reliance on section 172F(3) of the Act.
5. Pursuant to section 172Z(4) of the Act, the reasons for my decision to amend the Rules are that:
(a) the changes contained in the new Schedule C4 improve the policies and means the System
Operator employs to meet the principal performance obligations; and
(b) the new policy statement complies with the requirement in the Rules to review the policy statement annually.
6. These rules come into force on 1 September 2010.
7. Copies of the Rules may be inspected free of charge
or purchased from the Electricity Commission, Level 7, ASB Bank Tower, 2 Hunter Street, Wellington.
8. The Rules can also be viewed on the Electricity Commission’s website
http://www.electricitycommission.govt.nz/rulesandregs/rules
Dated at Wellington this 25th day of June 2010.
HON GERRY BROWNLEE, Minister of Energy and Resources.