Ann: GENERAL: NZX: EA selects NZX as preferred supplier extended...

• Release Date: 17/03/15 08:50
• Summary: GENERAL: NZX: EA selects NZX as preferred supplier extended reserve mgr
• Price Sensitive: No
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					NZX
17/03/2015 08:50
GENERAL
NOT PRICE SENSITIVE
REL: 0850 HRS NZX Limited

GENERAL: NZX: EA selects NZX as preferred supplier extended reserve mgr

The Electricity Authority has selected NZX as the preferred supplier for the
electricity market's extended reserve manager role. This is a new role in the
electricity industry.

The new extended reserve arrangements will be used as a 'last resort'
mechanism to restore balance in New Zealand's electricity system in the event
of a sudden loss of a large amount of electricity generation. A loss of
generation can threaten the security of electricity supply. The extended
reserve manager will be responsible for procuring electricity demand that can
be used to restore the balance and for ongoing management of the extended
reserve service.

These arrangements will add an additional level of security to New Zealand's
electricity supply. The new service provider role will improve on the current
regime which imposes a 'one size fits all' mandatory requirement on providers
of extended reserves.

The Electricity Authority's statutory objective is to promote competition,
reliability and efficiency in the electricity industry for the long-term
benefit of consumers.

Carl Hansen, Chief Executive of the Electricity Authority says, "the new
extended reserve system supports our reliability objective and should
minimise any power outages for consumers if an unplanned event threatens the
security of the electricity network."

NZX CEO Tim Bennett commented: "This new market-based approach to securing
extended reserve is both innovative and practical, and once implemented,
presents a significant benefit to the New Zealand economy."

"This role builds on NZX's existing service provision activities to the
Electricity Authority and we are looking forward to working with the industry
in implementing this exciting initiative," he said.

The extended reserve manager will now consult on the selection methodology
and will deliver the first procurement schedule of extended reserve by late
2016.

The Authority selected NZX as its preferred supplier for this role through an
open tender, consistent with the Government Rules of Sourcing.

NZX
Kate McLaughlin
Head of Communications
027 533 4529

For more information:
Electricity Authority
Nicky Chilton
Communications Manager
021 321 831
End CA:00261928 For:NZX    Type:GENERAL    Time:2015-03-17 08:50:13