Shelter Provider Training: Essentials of Care for People Who Have Been Displaced.
Market operator service provider essentials
Transcript of Market operator service provider essentials
Market operator service provideressentialsVersion 1.0
1
What you need to know to work with WITS,
the pricing manager, the clearing manager
and the reconciliation manager
Introduction
• This presentation provides a basic overview of the following service provider roles:
- Pricing manager
- WITS
- Clearing manager
- Reconciliation manager
• It is targeted at those new to the electricity industry
• NZX Energy offers industry training which provides a more in depth introduction to these
service provider roles
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Pricing Manager
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What does the pricing manager do?
• The primary role of the pricing manager is to calculate financial binding prices for the
wholesale electricity market
• Prices are calculated using the system operator’s Scheduling, Pricing and Dispatch
(SPD) model. This is the same model used by the system operator to forecast prices and
dispatch generation
• Prices are calculated the day after trading for all grid exit points and grid injection points,
for every half hour trading period
• Prices are published on WITS
• The pricing manager also manages the pricing error claim process
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• Final prices are the prices that
the clearing manager uses to
calculate amounts payable
from/to generators and
purchasers
• Final prices are not subject to
revision
• Prices are interim when no
provisional price situations have
been identified or all provisional
price situations have been
resolved
• Interim prices can be subject to
a pricing error claim and will
remain interim until the pricing
error claim is resolved
• Typically prices are provisional
where SPD input data has been
estimated, is incorrect, or
causes an “infeasibility”
• An infeasibility is where the
SPD model cannot be solved
for a price at one or more
locations on the grid
• The pricing manager notifies the
market of provisional price
situations on the day after
trading
• Prices can remain provisional
for multiple days before being
resolved with revised
information.
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Provisional, interim and final prices
• Prices are published for the previous trading day, every day, either as provisional or
interim
• Provisional prices are published after 10am and before 12pm on business days and after
9am and before 10am on non-business days
• Interim prices are published after 9am and before 12pm if there are no provisional price
situations
• Final prices are published after 12pm the first business day following the publication of
interim prices if no pricing error claim has been lodged
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Pricing manager deadlines
• Participants can lodge a pricing error claim against interim prices, if they believe prices
are incorrect
• Pricing error claim must as per Form 9 of Schedule 13.1 of the Code. We can provide
you with a template if required.
• Pricing error claims should be emailed to [email protected]
• Pricing error claims must be received by the pricing manager before 12pm on the first
business day following the publication of interim prices
• The pricing manager investigates the pricing error claim and provides a recommendation
to the Electricity Authority to either reject of uphold the pricing error claim
• If the pricing error claim is rejected then the pricing manager will publish interim prices
after notifying the market
• If the pricing error claim is upheld, then the pricing manager will recalculate prices (after
being provided with revised information) and publish these prices as interim
• Prices that are subject to a pricing error claim will remain as interim prices until a
resolution has been reached
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Pricing error claims
WITS
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• WITS is the wholesale information trading system, it:
- Allows participants to upload offers and bids for the wholesale electricity market
- Provides access to pricing information published by the system operator and pricing
manager. Besides prices, participants also view their forecast cleared generation,
HVDC flows, transmission constraints and SPD infeasibilities
- Provides access to the clearing manager portal. Participants use this portal to receive
invoices, statements and prudential information
• All non confidential market information is also available at
https://www2.electricityinfo.co.nz/
• Contact [email protected] or 0800 NZX energy
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What is WITS?
• If you are a new market participant and wish to get access to WITS:
- Complete the WITS sign up form and email to the Authority at
- Complete the System of Use Agreement and send to [email protected]
- Contact [email protected] for these forms
• If your organisation already has access to WITS and you wish to add a new user:
- Email a request through to the WITS help desk with the user’s full name & email
address and read only or full trader access
- You can define different levels of access to WITS for different users.
• Besides the web browser WITS also supports automated access to information through
SFTP or web services.
• Get in contact with us if you need further help on the above
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Getting access to WITS?
Reconciliation Manager
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Overview
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• The reconciliation manager is responsible for calculating the quantity of electricity
purchased and generated by each participant in the wholesale electricity market.
• Purchase and generation quantities are calculated for every trading period and grid
location on a monthly basis.
• Key inputs to this calculation include:
- Metered grid quantities
- Participant quantity submissions (referred to as “volume submissions”)
• As part of the calculation process the reconciliation manager will:
- Adjust volume submissions to account for electrical losses within a network
- Convert non-half hourly volume submissions provided on a monthly basis to a half
hourly basis. This is achieved using a ‘profile’ either provided by the participant or as
calculated by the reconciliation manager.
- Calculate unaccounted for electricity and apportion this to participants. Unaccounted
for electricity is where there is a difference between metered grid quantities and total
participant quantity submissions.
• The reconciliation process is complex. For more information contact [email protected].
Submitting volume information and receiving reconciliation reports
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• Participants can send submission information and receive reconciliation reports through
the reconciliation web portal, SFTP or web services.
• Contact [email protected] to obtain an account and login details.
• The reconciliation web portal can be accessed at www.electricityreconciliation.co.nz
• The reconciliation web portal contains further explanatory information including a file
names and file formats documents and system user guide.
• Please get in contact with us if you which to use SFTP or web services.
• UAT sites are also available. We recommend that these are used prior to your first
submission.
Key reconciliation dates
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• Business day 4 (i.e. the 4th business day of the month), 4pm - Initial volume submissions
must be provided for the previous month. Participants must submit volume submissions
for all ICPs for which they are recorded as being responsible for in the registry.
• Business day 7, 12pm - Initial reconciled volumes for the previous month are published
by the reconciliation manager to participants and the clearing manager.
• Business day 14, 4pm - Wash-up submissions are due from participants to the
reconciliation manager. Wash-up submissions are provided by participants where they
have revised volume information (e.g. to correct for estimates). Wash-up submissions
are provided for 1, 3, 7 and 14 months prior to the current month. These are referred as
the R1, R3, R7 and R14 revisions.
• Last business day, 12pm – Wash-up reconciled volumes (R1,3,7,14) are published by
the reconciliation manager to participants and the clearing manager.
Clearing Manager
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Overview
The clearing manager has the following key functions:
• Ensuring participants maintain the minimum amount of prudential security defined in the
Code. This includes calculating minimum prudential security amounts on a daily basis
and monitoring each participants security holdings
• Preparing invoices and statements for participant purchases and sales of electricity to the
wholesale electricity market. Invoices also cover ancillary services (as provided by the
system operator), and financial transmission rights (FTRs)
• Ensuring the orderly payment of invoices as required to settle the market
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Prudential Security
• Prudential security is required so that the clearing manager can still pay generators in the
event that a purchaser is unable to settle their amounts due (i.e. they default).
• Prudential estimates are provided to participants on every business day. The estimate is
made up of an outstanding exposure (amounts already consumed or generated, though
not yet settled) and an exit period exposure (7 or 18 days of estimated purchases and
sales, for consumers directly connected to the national grid and retailers respectively).
• The clearing manager will provide participants with a prudential estimate for the current
day and forward prudential estimates for the next three business days.
• Participants are required to meet the lowest of all estimates for the current business day
by 1600 hours on that day. This includes the prudential estimate made for the current day
and previous forward prudential estimates made for the current business day
• The clearing manager can only accept cash to cover prudential security if there is a
specific security deed or deed of priority in place.
• Other forms of security include; letters of credit, bank guarantees and hedge settlement
agreements. Prepayments for electricity not yet consumed is another option for reducing
exposure.
• Participants can request a reduction/release of prudential cash if they have a sufficient
surplus of prudential security. This request must be emailed into the clearing manager
and will be processed within 24 hours of the request being made.
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• Wash-up notifications are published on business day 5. Wash-up notifications detail
revisions to previous month’s invoices.
• Invoices and statements are published on business day 9. Tax invoices and pro-forma
invoices are provided for the participant in their capacity as a purchaser and as a
generator. Invoices will include any wash-up amounts. Statements detail amounts
payable to and from the clearing manager. Statements will take into account any pre-
payments made.
• These documents are accessed on the WITS clearing portal or electricityclearing.co.nz
• Further explanatory information on how to understand these documents is also available
on the WITS clearing manager portal home page.
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Wash-up notifications, invoices and statements
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Settlement Day
• Settlement day is the 20th of each month or the next business day
• Amounts payable to the clearing manager must be made in same day cleared funds and
must be in the clearing managers settlement account by 1300 hours. Please allow time
for ANZ to process your payment
• If your payment is late you will be in default. The clearing manager does not have any
discretion to exercise in this regard
• Participants can request prudential cash to be used to cover amounts payable by
notifying the clearing manager at least two days before settlement day
• The clearing manager will pay amounts payable to all participants by 1600 hours
• Participants can request the clearing manager to pay amounts payable into their
prudential cash trust account by notifying the clearing manager at least two days before
settlement day
• On settlement day the clearing manager will also publish buyer created tax invoices.
These are available on WITS and electricityclearing.co.nz. For access to these portals
contact [email protected].
Trading for the first time
Before you start buying or selling electricity on the wholesale electricity market, you must:
• Register as a participant with the Authority and have a 4 letter participant identifier
• Provide the clearing manager with completed NZX Energy new participant documents.
This includes banking and contact information. It also includes information to allow the
clearing manager to do a customer due diligence check, required under anti money
laundering legislation. Email [email protected] to request these documents.
• Provide the clearing manager with an estimate of purchase quantities by GXP. This will
allow the clearing manager to estimate the minimum amount of prudential security you
are required to post (see below)
• Let the clearing manager know in plenty of time before you intend to start trading. The
clearing manager will let you know how much prudential security you are required to post.
• Provide the clearing manager with sufficient prudential security ahead of trading. There
are a number of ways in which this can be done. Email [email protected] if you need further
information.
• If you wish to use cash to meet your prudential security requirements you will need to
provide the clearing manager with a specific security deed.
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Contact details
• NZX energy physical address: 11 Cable Street, Wellington
• Email address and phone addresses:
- pricing manager: [email protected], +64 4 498 0028
- WITS: [email protected], 0800 NZX Energy, WITS
- reconciliation manager: [email protected], +64 (0) 4 498 0044
- clearing manager: [email protected], +64 4 495 2801
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Useful Websites
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WITS:
• Primary WITS – www.electricitywits.co.nz
• Secondary WITS – www.wlg.electricitywits.co.nz
Reconciliation manager:
• Primary Portal - www.electricityreconciliation.co.nz
• Secondary Portal - wlg.electricityreconciliation.co.nz
Clearing manager:
• Primary Portal - https://electricityclearing.co.nz
• Secondary Portal - https://wlg.electricityclearing.co.nz
23 © Copyright NZX Ltd. 2016