Page 1 of 4
Title / Demonstrate knowledge of the New Zealand electricity market operation and regulation
Level / 5 / Credits / 16
Purpose / People credited with this unit standard are able to demonstrate knowledge of: New Zealand electricity markets and their operational structure; the operation of electricity markets in New Zealand; and the Electricity Industry Participation Code (EIPC) and the Electricity Industry (Enforcement) Regulations 2010.
Classification / Electricity Supply > Electricity Supply - Power System Management
Available grade / Achieved
Explanatory notes
1This unit standard is intended for, but not restricted to, workplace assessment. The range statements across the unit standard can be applied according to enterprise specific equipment, procedures, and processes.
2Safety of personnel and plant must be a priority throughout the assessment. If the safety requirements are not met the assessment must stop.
3Performance and work practices in relation to the outcomes and evidence requirements must comply with all current legislation, especially the Electricity Act 1992, and any regulations and codes of practice recognised under that statute; the Health and Safety in Employment Act 1992; and the Resource Management Act 1991. Electricity supply industry codes of practice and documented industry procedures include the current version of the Safety Manual – Electricity Industry (SM-EI) (Wellington: Electricity Engineers’ Association). A full list of current legislation and industry codes is available from the Electricity Supply Industry Training Organisation, PO Box 1245, Hamilton 3240.
4The phrase in accordance with industry requirements is implicit in all evidence requirements in this unit standard.
5Industry requirements include all asset owner requirements; manufacturers’ specifications; and enterprise requirements which cover the documented workplace policies, procedures, specifications, business and quality management requirements relevant to the workplace in which assessment is carried out.
6Practical exercises should be used for training and assessment where possible.
7The Electricity Industry Participation Code (EIPC) governs the electricity industry markets in New Zealand, and is available at:
8Reference is made to the following Acts in this unit standard:
Commerce Act 1986;
Fair Trading Act 1986.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of New Zealand electricity markets and their operational structure.
Rangemay include but is not limited to – generation, transmission, distribution, retail.
Evidence requirements
1.1The purpose of electricity markets in New Zealand is described in terms of its history, its fundamental principles, and its legislation.
1.2The principle objectives and key roles of the Electricity Authority are described.
Rangemay include but is not limited to – security of supply, transmission grid investment, hedge market arrangements, The Rulings Panel, advisory groups.
1.3The structure of electricity markets in New Zealand is described.
Rangemay include but is not limited to – generator, purchaser, Electricity Authority, service providers, distributors, ancillary services agents.
1.4Legislation applying to electricity markets in New Zealand is identified, and knowledge of legislation is demonstrated.
Rangeincludes but is not limited to – Electricity Industry Act 2010, Electricity Industry Participation Code 2010, Electricity Industry (Enforcement) Regulations 2010, Commerce Act 1986, Fair Trading Act 1986.
Outcome 2
Demonstrate knowledge of the operation of electricity markets in New Zealand.
Evidence requirements
2.1The process of producing and submitting a bid into the New Zealand wholesale electricity market is described.
Rangemay include but is not limited to – forecasts, constraints, outages, policies, energy and reserve quantities, prices, tranches, contracts, two hour rule, bona fide.
2.2The process of producing and submitting an offer for the New Zealand wholesale electricity market is described.
Rangemay include but is not limited to – forecasts, constraints, outages, policies, energy and reserve quantities, prices, tranches, contracts, ramp rates, two hour rule, bona fides, embedded generation, intermittent generation, co-generation.
2.3The role of the Electricity Authority in the New Zealand electricity markets is described.
Rangemay include but is not limited to – market administrator, market governance, engagement of service providers.
2.4The roles of service providers in the New Zealand electricity markets are described.
Rangemay include but is not limited to – market administrator, system operator, reconciliation manager, information system provider, clearing manager, pricing manager.
2.5The concepts of pricing in the New Zealand electricity markets are described.
Rangemay include but is not limited to – nodal, tranche, spot, provisional, forecast, clearing, dispatch, final, location factor, losses, constraints, bids, offers, aggregation.
2.6The types and effects of contracts and agreements in the New Zealand electricity markets are described.
Rangemay include but is not limited to – hedges, company policies, service contracts, fuel contracts, futures, retail, fixed price variable volume, load shedding.
Outcome 3
Demonstrate knowledge of the Electricity Industry Participation Code (EIPC) and the Electricity Industry (Enforcement) Regulations 2010.
Evidence requirements
3.1The industry specific rules concerning common quality are described in accordance with the EIPC Part 8.
3.2The industry specific rules concerning trading, dispatch, and settling of wholesale prices and reconciliation are described in accordance with the EIPC Part 13.
3.3The industry specific rules concerning settlement of sale and purchase of electricity and ancillary services are described in accordance with the EIPC Part 14.
3.4The industry specific rules concerning compliance and breach reporting are described in accordance with the Electricity Industry (Enforcement) Regulations 2010 Part 1.
Planned review date / 31 December 2016Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 20 December 1998 / N/A
Review / 2 / 20 September 2002 / N/A
Revision / 3 / 11 February 2004 / N/A
Review / 4 / 23 April 2008 / N/A
Rollover and Revision / 5 / 15 November 2012 / N/A
Consent and Moderation Requirements (CMR) reference / 0120
This CMR can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact the Electricity Supply Industry Training Organisation if you wish to suggest changes to the content of this unit standard.
Electricity Supply Industry Training OrganisationSSB Code 101813 / New Zealand Qualifications Authority 2018