The Electricity Authority is seeking feedback on its proposed strategic directions for market development in a new consultation paper. The Authority intends to incorporate the strategic directions in its 2013/14 Statement of Intent.
The paper indicates that the Electricity Authority is keen to provide consumers and participants with a clearer sense of the direction of the Authority's regulatory effort over the next decade, but the Authority does not intend setting out a future blueprint of the regulatory framework.
The Authority considers that the strategic directions will help parties to better understand:
- how the market development work programme might evolve over the next 10 years, thereby assisting the coordination of market development projects and activities and planning processes, including possible future implementation requirements or possible subsequent work priorities;
- the interactions between individual projects, thereby facilitating the identification of those initiatives that should be given priority consideration based on the potential benefits available relative to the effort required; and
- how the work programme contributes to meeting the competition, reliability and efficiency aspirations in the electricity industry.
The proposed strategic directions for market development include:
- reducing barriers, involving facilitating the entry, expansion and exit of parties from electricity markets;
- facilitating consumer participation, involving facilitating consumers exercising choice of supplier and product;
- providing efficient price signals, involving facilitating informed decision-making by disseminating price data and information; and
- promoting flexibility and resilience, involving facilitating the efficient operation of the electricity system and markets.
An appendix to the consultation paper describes the Authority's views about the challenges facing the electricity sector and the possible implications, which were used to develop the strategic directions.
Submissions close on 23 April. Further information is available here.