This a centralised trading platform for standardised derivative contracts on electricity prices in New Zealand.
The contracts cover a period of approximately 5 years, and each contract is for a notional quantity of 250kW based at the Otahuhu, Haywards or Benmore grid reference point.
The current market participants are Contact Energy Limited, Genesis Power Limited, Meridian Energy Limited, Mighty River Power Limited and TrustPower Limited.
The market trades between 11am and 12pm each business day. "Business Day" is defined as any day other than a Saturday or a Sunday on which registered banks are open for general banking business in Auckland and Wellington. The market is also closed over the Christmas and New Year period between dates agreed on by existing market participants.
Please note that this is not an authorised futures exchange or market and is not regulated under New Zealand law.
Contractual Structure
In order to simplify the process and reduce the costs associated with executing financial hedges in the New Zealand electricity market, a group of industry participants including demand side representatives developed a standardised schedule which can be adopted in conjunction with the 2002 ISDA Master Agreement.
The participants in EnergyHedge have elected to adopt this standard schedule as the contractual basis against which all contracts in the EnergyHedge market will be executed, effective from 1 January 2007.
Attached is a copy of the Market Rules, including the standard schedule, and Participation Agreement as adopted for EnergyHedge. Interested parties are welcome to contact the EnergyHedge coordinator should they wish to make further enquiries in relation to the schedule or associated documentation.
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