 The
New Zealand Electricity Market (NZEM) has a simple function – to set the prices that bring electricity every day to everyone who uses it. Buying and selling wholesale electricity is done through a ‘pool’, where electricity generators offer electricity to the marketplace for dispatch through the electricity transmission system (the national grid). Electricity retailers then buy what they need from this pool to supply their customers. This is termed the ‘spot’ market. How power and money flows within NZEM: 
MARIA (the Metering and Reconciliation Information Agreement) is an arrangement that lets electricity wholesalers and retailers compete for customers. MARIA governs aspects of the metering and reconciliation process, particularly the matching of location data provided by retailers and generators. It aims to ensure all electricity customers are able to change their electricity retailer with ease. M-co is the administration manager for MARIA. It is responsible for administering MARIA in accordance with the rules, and contributing to its ongoing development. The National Reconciliation Manager is responsible for reconciling metering data against a register of contracts and passing the data to industry participants. Transpower presently performs the role of NRM through its subsidiary, d-Cypha Limited. The Registry provides an audit function for the validation of Installation Control Point (ICP) data. The ICP database allows the Registry to identify which retailer supplies which ICP for the purpose of reconciling energy flow. It also facilitates switching of customers between retailers as it is the database of record for the ICP. The Maria Governance Board oversees MARIA's self-regulating structure, monitoring and approving changes to the operational rules. The Board sets up working parties to consider changes to governance rules and decides which proposed changes should be put to a vote. It also engages MARIA's Conduct Committee and Appeal Board, and appoints arbitrators for dispute resolution. Generators and retailers elect four of the Board's members, while distributors elect two members. The members can be independent, while the Chair is always independent. Governance Board members are expected to look after the interests of the industry as a whole, and not to represent sector or company interests. The Market Surveillance Committee (MSC) is an elected body of independent members, charged with the surveillance and compliance of NZEM. Its major task is to ensure compliance with the NZEM and MARIA rules. The MSC is a vital part of the market and is modelled after traditional commodity market enforcement bodies. In other words, it has similar powers and duties to the New Zealand Stock Exchange's Market Surveillance Panel and the Business Conduct Committee of the New Zealand Futures and Options Exchange. NZEM Rules describe the MSC's role as to ensure market participants meet high standards of transparency and compliance – vital for any self-regulated market. For more information on the MSC
click here Source: World Energy Organisation
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