Market Operation Service Providers (MOSP) Services – 2027 Procurement

Summary

The Electricity Authority Te Mana Hiko (the Authority) plans to start a competitive procurement process for five Market Operation Service Provider (MOSP) services shortly. Existing MOSP contracts finish on 30 June 2027. The purpose of this Advance Notice is to signal the Authority’s intention to go to market and to provide early visibility to potential suppliers. The MOSP services we will be procuring for are: 1. Clearing Manager: Acts as the financial counterparty for wholesale electricity transactions, invoicing participants and managing prudential security to mitigate payment default risk. 2. Financial Transmission Rights (FTR) Manager: Creates and allocates FTRs through regular auctions, manages the FTR register and supports participants in hedging locational price risk. 3. Reconciliation Manager: Processes and reconciles metering data monthly to allocate electricity volumes accurately among participants, ensuring correct settlement and supporting clearing processes. 4. Registry Manager: Maintains the Electricity Registry (a national database of every point of connection (ICP)) and manages customer switching protocols, compliance reporting and ICP data integrity. 5. Wholesale Information and Trading System (WITS) Manager: Operates the 24/7 WITS platform for submitting bids/offers, publishing real-time prices and facilitating market transparency. The Authority intends that the contracts for the new MOSP arrangements will be similar to the current contracts but likely with enhancements and refinements to reflect changes in law or practice. This Advance Notice does not mean the Authority has committed to proceed with the procurement, and it is not part of the formal procurement process. No response is required at this stage. Further details, including the confirmed scope, structure, and timeframes, will be released through the New Zealand Government Electronic Tender Service in due course. In the meantime, we would encourage potential suppliers to: • familiarise themselves with the current MOSP arrangements, including the contractual documents, which can be found on the Authority’s website https://www.ea.govt.nz/industry/mosp/ (note this procurement does not include the System Operator role, as the Electricity Industry Act 2010 mandates that Transpower is the System Operator). • subscribe to GETS if they have not already done so.