New Zealand Gazette – 2006 – No. 123

Page 3618

✨ Electricity Security of Supply Objectives



3618

NEW ZEALAND GAZETTE, No. 123

30 OCTOBER 2006

  • set requirements on generators to offer by tender a minimum
    volume of contracts that enable the price risks associated with
    the spot market to be managed, including requirements relating
    to the terms and conditions of those contracts (excluding prices
    and reserve prices). This would incentivise generators, if those
    contracts were taken up, to hold sufficient capacity and fuel to
    meet those contracts or to cross-insure with other generators for
    that purpose

  • set requirements on retailers and other direct buyers of electricity
    from the wholesale market to maintain minimum levels of hedge
    and contract cover with generators and/or minimum levels of
    demand-side management programmes and contracted demand
    response.

Conservation campaigns during security of supply situations

72 Although the Government wants the Commission to manage the electricity
sector to minimise the risk of supply shortages, it recognises that there will be
infrequent circumstances where there is a material risk of shortages (for
example in a worse than 1 in 60 dry year). In this event, the Government
expects the Commission to activate a conservation campaign in a timely
manner, since conservation is significantly less damaging to the economy and
less disruptive to consumers and public welfare than actual blackouts.

Use of ripple control of hot water heating during security of supply situations

73 The Commission is expected to ensure contingency arrangements are put in
place for the use of ripple control of hot water heating for use as appropriate if
conservation campaigns are required, and as a measure to temporarily reduce
demand in events such as major and unexpected plant or transmission line
outages. The Commission should recommend regulations and rules if
required. (The use of ripple control for these purposes should not preclude its
use for other purposes outside of security of supply situations).

Co-ordination of outages during security of supply situations

74 The Commission is also expected to put in place contingency arrangements
to provide for the scheduling of rolling outages in the extreme event that
blackouts are required to ensure a balance between supply and demand.
The Commission should recommend regulations and rules if required.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 123


Gazette.govt.nz — PDF NZ Gazette 2006, No 123




✨ LLM interpretation of page content

🏛️ Security of Supply Objectives for the Electricity Commission (continued from previous page)

🏛️ Governance & Central Administration
Electricity, Security of Supply, Reserve Energy, Hydro Management, Dry Year Risks, Policy Development, Operational Standards, Minimum Hydro Zone, Conservation Campaign, Consultation Processes, Transparency, Stability, Market Interventions, Reserve Energy Contracts, Ripple Control, Hot Water Heating, Outage Coordination, Blackouts