The Electricity Authority (the Authority) and NZX are pleased to announce they have today signed the agreements relating to NZX’s appointment as supplier for all four market operator service provider roles tendered by the Authority.
The roles are integral to the operation of New Zealand’s electricity market, enabling industry participants to buy and sell electricity on the spot market.
Following the tender process, the Authority announced in August that NZX was the preferred supplier for the four roles (which NZX currently performs):
• Clearing manager
• Reconciliation manager
• Pricing manager
• Wholesale information and trading system (WITS) manager
The new eight year agreements start on 1 May 2016 and include a three year renewal option. The total combined value of the contracts over the initial eight year term is approximately $41 million.
In the first three years NZX will be focussed on developing the market’s trading system to improve data accessibility and increase usability.
Electricity Authority General Manager, Market Services Fraser Clark commented: “The Authority’s focus through the retender process was to ensure that the services and systems will be flexible and scalable to cater for changing market requirements, can be further developed in a timely and cost-effective manner, and will be resilient to potential systems failures and outages. We were also focused on ensuring value for money.”
“The Authority looks forward to working with NZX to operationalise these new service provider agreements and ensure that the services are delivered to a high standard,” Clark commented.
NZX CEO Tim Bennett commented: “Our reappointment highlights NZX’s independent market status and the 20 years of experience we have had providing these services to the electricity sector.”
“NZX is committed to working closely with the Authority to meet its statutory objectives relating to competition, reliability and efficiency for the long-term benefit of consumers.”