Clearing and Reconciliation User Group · 2017-06-21 · 3.00 - 3.30 •Afternoon tea 3.30 - 3.45...

Clearing and Reconciliation User Group 10th August 2016 - NZX

NZX Centre

Cable Street

Wellington

CM & RM User group meeting

10th August 2016 © Copyright NZX Ltd. 2016 2

Agenda

• Welcomes and Introductions 2.00 - 2.30

• Clearing workshop 2.30 - 3.00

• Afternoon tea 3.00 - 3.30

• WITS Demo 3.30 - 3.45

• Reconciliation workshop 3.45 - 4.30

• Items from the floor 4.30 - 5.00

• Drinks 5.00 - 6.00



Welcome from NZX

Shane Dinnan Head of Energy Markets, NZX



Welcome from EA

Grant Benvenuti Manager Market Operations, EA



Development of the roles

The new MOSP contracts require NZX Energy to:

Assist the Authority give effect to its statutory objective

Continually plan and cater for the evolution of the services and seek to improve its

performance

This presentation talks about how we will achieve these goals:

The MOSP enhancement programme

Services road maps

Third party innovation

Steve Torrens



MOSP enhancement programme

Significant investment in each role’s system to:

Improve access to data by participants

Reduce complexity and improve usability

Increase security

Improve efficiency of back office processes

Steve Torrens



MOSP Enhancement Programme

The programme:

Will be delivered in 5 phases

First phase to be completed in October 2016

Fifth phase completed in September 2018

Major upgrade to the WITS front end

Upgrades to the other services focus on participant data accessibility and efficiency /

modernisation of back office systems

Get involved in UAT : We want your feedback!

Steve Torrens



Services road map

Each role will have a road map outlining our strategic vision and key initiatives for the

next 12 - 36 months

This will developed in the close collaboration with the Authority and with input from

participants

The road map for each role must be updated at least annually

Steve Torrens



Services road map inputs

The road map will:

Prioritise development work

Ensure that the services we provide remain fit for purpose

Inputs to the road map:

Authority market design work programme

Participant feedback - face to face meetings, user groups, surveys and informal

consultations

Initiatives to reduce cost and improve resiliency

Steve Torrens



Third party innovation

The new MOSP contracts also allow participants to fund specific role system features:

Contract directly with NZX

Must source data from the standard reporting available to all users

Two options for such features:

For the exclusive use of the funding participant for a six month period - feature

incorporated into the system proper

For the continued exclusive use of the funding participant - feature must be

independent from the main system

Steve Torrens



John Andrews

Clearing manager workshop

• Change to FTR methodology - Consultation in 2017 1

• New supporting files for participants 2

• Un-Offered Generation submission interface 3

• Planned changes for clearing manager’s systems 4

• Any comments - New participants, contacting the clearing analysts 5



Problem in methodology for FTR DSP for option products

Resolved with a change to be implemented in Dec 2016

Currently a reset to high DSPs is in place (16 DSPs reset in 2015)

New methodology has a factor to dilute the impact of the predictive model if it is far from

the market-set DSP. (Also handles issues around zero values in predictive model)

Clearing team happy to talk through the DSP methodology and the changes

John Andrews

Change to FTR methodology



Comments received during consultation on DSP for options

Reiterated by EA Board

Concerns:

Methodology is complicated and not transparent

Methodology does not appear to predict next price setting trade

Actions:

Exact details of the values used in the methodology calculation will be published

each day in the DSP extended CSV file

Analysis and discussion around methodology and possible changes shows

divergent opinions on purpose of DSP and need for model

John Andrews

DSP changes – consultation in 2017



New supporting files for participants





Five participants submit data weekly as allowed in the prudential methodology

Aim is to remove emails and manual processing

This step allows participants to upload the data themselves

Future is to have automatic upload from an FTP process

Clearing analyst still validates and runs the processing

Example of the changes the clearing team are making to reduce manual actions

John Andrews

Un-Offered Generation



John Andrews

Planned changes to clearing



Access to clearing documents (Prudential statements, DSP values, Invoices and

Statements) are currently on WITS and electricityclearing.co.nz

Please contact us if you would like to use electricityclearing.co.nz

Clearing manager team meeting with new participants almost every month

Happy to meet with you and your teams - easier to deal with people we know

Always open to feedback, questions and comments

Please use the [email protected] email to ensure team receives the email

John Andrews

Communication with the CM

mailto:[email protected]



WITS Demo



Reconciliation manager workshop

David Charlton

• Upcoming changes and enhancements 1

• MainPower balancing area re-configuration 2

• Trading Notifications 3

• Embedded network owners and balancing area naming 4



Upcoming changes

Unauthorised submissions

Agent/Client relationships

Testing during August/September

Production during September

Move away from emails and manual processes

Ad hoc reports available through the portal/SFTP (15.22)

NSP and grid changes via a web form

Volume disputes via a web form

Notifications to participants

System generated

Standardised formats

Likely emailed and published as news items

Participant feedback!

David Charlton



Mainpower balancing areas

Affecting 2 existing and creating 1 new balancing areas

Change coming into effect 1st October 2016

To assist traders in submissions, and reduce UFE, seasonal adjustment shapes will

be re-published

PRSHAPE (GR-020) and PRSEASL (GR-030) re-produced for 14 months prior to

change - as if change had been backdated.

Several reports made available on UAT mid-August

Publishing

One time publishing end of October?

Multiple publishing as washup completed?

David Charlton



Trade notifications 1

Original intent - Provision of trade notifications has always been a MARIA/EGR and now

Code requirement to ensure

profile has been approved and is current

profile use is authorised by profile owner (who may not be a participant)

that the person responsible for provision of the shape file is identified (may change also)

duplicate shape files are not provided to the reconciliation system

that the RM system is configured correctly and non delivery of shape file is identified prior to RM

commencing reconciliation cycle

David Charlton / Ron Beatty

15.3 Provision of trading information at point of connection to network

(1) Unless a notification under clause 15.13 is in force, a trader must give the reconciliation manager a notification that

complies with this clause at least 5 business days before the trader—

(a) commences trading electricity at a point of connection using a profile with a profile code other than HHR or RPS or UML or

EG1 or PV1; or

(b) ceases trading electricity at a point of connection using a profile with a profile code other than HHR or RPS or UML or EG1

or PV1.

(2) A person giving a notification must ensure that the notification complies with any procedures or other requirements

specified by the reconciliation manager.

(3) The reconciliation manager must give a copy of every notification to the clearing manager and system operator no later

than 1 business day after receiving the notification.



Trade notifications 2

Current usage

Must be submitted for every combination of:

Trader

Buy/sell

NHH/HHR

NSP

RM creates trade notifications for standard

profiles based off registry information at the

start of the month for most participants (days

2-4 switches may be missed)

NHHVOLS and HHRVOLS file validation

Manually updated via emails / PDF report

On average, 150 edits per month

David Charlton



Trade notifications 3 Minimum requirements of RM system, MUST have

GG and GD volume allocation (from NSP volumes)

SB incumbent volume allocation (from UFE)

Only owners/approved users can submit the respective profile shapes or volume

Options going forward

Must remain for GG/GD/SB’s

Keep authorisations for profile shapes

File validations on trade notifications optional

Could include field for profile code with expected submitter of profile shape

ensure obligations of 15.3 met

RM system change

Initially will be a significant effort for traders

Participant self management will be required from the portal

David Charlton



Embedded network owners

Use of embedded network owner participant identifiers

Balancing area naming conventions

aaaaaaaNNNNX where NNNN is the network owner

participant identifier

for embedded networks suggest change future

balancing area naming convention to replace network

owner participant identifier with EN gateway NSP

Minimise operational impacts of traders

increase in network owners, or changes in balancing

areas?

Ron Beatty

5

2

4

2

1

4

9

13

10

21

22

24

35

41

2010

2011

2012

2013

2014

2015

2016

Number of new NSP EN’s and owners by year

New EN's New EN owners



Items from the floor

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Clearing and Reconciliation User Group · 2017-06-21 · 3.00 - 3.30 •Afternoon tea 3.30 - 3.45...

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