Electricity Authority Retention and Disposal Schedule Report

Transcription

1 Electricity Authority Retention and Disposal Schedule Report win7user SWIM Ltd.

2 TABLE OF CONTENTS 1. Purpose Executive summary Scope of retention and disposal schedule Public office (Agency) information Establishment of the Authority Authority roles and functions Organisational structure Significance of Authority records Recordkeeping environment Methodology Relevant precedent Approach Internal consultation External consultation Format of the schedule Use of General Disposal Authorities Disposal criteria Description of classes Class no 1 Regulatory Development Class no 2 Regulatory Compliance Class no 3 Market Operations and Service Provider Management Class no 4 Market Monitoring Class no 5 Market Facilitation Class no 6 Sector and Industry Datasets and Metadata Class no 7 Governance and Strategic Management Access Restrictions Appendix One Retention and Disposal Spreadsheet

3 Name of Public Office Type of Appraisal Electricity Authority Ongoing retention and disposal authority Date of Report August 2013 Report Author Agency Contact Coverage and Scope [name removed] [name removed] Knowledge and Information Manager, Electricity Authority This schedule applies to all public records in any format pertaining to the functions of the Electricity Authority and its predecessor (the Electricity Commission). The public records may be current, non-current or yet to be created and includes both hard-copy and electronic records and data sets. 1. Purpose The purpose of this Retention and Disposal Report is to articulate the nature of the Authority s relationship with its business information and data; consequently it provides context and justification for the disposal decisions in the Electricity Authority Retention and Disposal Schedule. The schedule outlines record classes with disposal actions and time periods for approval by the Chief Archivist. The report and the accompanying schedule have been prepared in accordance with Archives New Zealand requirements and standards. Once approved by the Chief Archivist the Retention and Disposal Schedule remains the valid disposal authority for the Electricity Authority for ten years. The schedule sits alongside General Disposal Authorities which have been issued by the Chief Archivist and cover corporate service functions. 2. Executive summary The Electricity Industry Act 2010 (Act) established the Electricity Authority (Authority) from 1 November 2010 as an independent Crown entity. As the industry regulator, the Authority is the hub of the New Zealand electricity industry and plays a pivotal role in the electricity market. The Act states that the Authority s objective is to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.the records created and managed by the Authority in fulfilling its functions provide primary evidence of how the New Zealand electricity industry and market operates, as well as providing valuable data and research material for future generations. Neither the Authority, nor its predecessor, the Electricity Commission, has had an approved retention and disposal schedule and neither agency has transferred public records to 3

4 Archives New Zealand. Very few Authority or Commission records have ever been disposed of, with the exception of some items covered by the Archives New Zealand General Disposal Authorities. In late 2011 the Authority established a formal programme of work covering information and records management activities governed by the senior leadership team. The development of a retention and disposal schedule to support regular and appropriate disposal activities was part of this programme of work. The Authority s Records Management Policy approved in early 2012 also articulates the responsibilities the Authority has around appropriate disposal of information, further supporting the implementation of the retention and disposal schedule. This schedule applies to all public records in any format pertaining to the functions of the Authority, whether current, non-current or yet to be created. The scope includes hard-copy and electronic records, including data sets, of the Authority and the records of its predecessor in its custody. Records covered by the schedule include data pertaining to the wider electricity industry in New Zealand that is collected and maintained by the Authority. The schedule consists of seven classes (with 46 sub-classes) of records relating to the core business functions of the Authority. Corporate records to support the Authority s operational activities are covered by the Archives New Zealand General Disposal Authorities. The retention ratio in the schedule is relatively high, which reflects the significance of the records and role of the Authority as a market regulator. This is due primarily because of the amount of data created and maintained by the Authority. The Authority s datasets are continually being added to and are likely to continue to be in current administrative use for decades, therefore transfer of the datasets identified to have archival value to Archives New Zealand would negatively affect the Authority s ability to carry out some of its functions. A deferral of deposit will be sought separately from this retention and disposal schedule for one sub-class containing the definitive version of datasets with accompanying metadata (class 6/4). In addition the Authority is pursuing an on-going programme of work to release as much data as it can, therefore meeting the needs of external parties to access this information, and also meeting goals of the Open Government Data and Information Reuse Programme. 4

5 3. Scope of retention and disposal schedule This schedule applies to all public records in any format pertaining to the functions of the Electricity Authority and its predecessor (the Electricity Commission), whether current, noncurrent or yet to be created. This includes both hard-copy and electronic records and includes data sets of the Authority and its predecessor. The Authority is aware that the rate of technological change is such that it is impossible to know what formats and medium records will be stored in over the ten year lifespan of this schedule; however the appropriate retention and disposal of its information will be a key business requirement in the assessment of any future information and communication technologies that hold our information or data. 4. Public office (Agency) information Name of public office: Electricity Authority Public office s physical location: Wellington Year established: 2010 Year disestablished: Current 4.1. Establishment of the Authority The Act established the Authority from 1 November 2010 as an independent Crown entity. The Act dissolved the Electricity Commission, transferring its functions to the Authority, Transpower New Zealand Limited (Transpower), the Commerce Commission, the Energy Efficiency and Conservation Authority (EECA), the Ministry of Consumer Affairs (MCA), and the Ministry of Economic Development (MED). Section 15 of the Act provides the Authority with a clear objective: The objective of the Authority is to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. Overall, the Authority has fewer responsibilities than the former Electricity Commission, but new requirements to be implemented in the first year of operation included: Establishing the Security and Reliability Council (SRC) (section 20) and other advisory groups (section 21); Developing a charter about advisory groups (section 19); Developing a consultation charter (section 41); 5

6 Developing its analytical capacity to proactively monitor and investigate the performance of the industry in relation to competition, reliability and efficiency, and to respond to Ministerial review requests (section 18); Developing and implementing programmes to promote and facilitate customer switching, in order to enhance retail market competition; Carrying out monitoring, compliance and exemption requirements for lines and energy separation provisions for distribution companies in Part 3 of the Act (previously undertaken by the Commerce Commission under the Electricity Industry Reform Act (EIRA)). Former Electricity Commission tasks that have been transferred to other agencies: The System Operator is responsible for security of supply management including medium-term forecasting and supply emergencies; EECA is responsible for electricity efficiency programmes; The Commerce Commission is responsible for considering grid upgrade plan proposals; MED is responsible for developing and publishing supply and demand scenarios The Minister of Energy and Resources is responsible for recommending regulations on some consumer fairness and equity issues that do not fit within the Authority s objective, and are not covered by the Electricity Industry Participation Code (the Code); The Minister of Consumer Affairs, in consultation with the Minister of Energy and Resources, is responsible for provisions relating to electricity and gas consumer complaints schemes Authority roles and functions The Authority was established with its primary focus being that of providing independent governance of the electricity industry (primarily Code-making and enforcement of the Electricity Industry Participation Code). Section 16 of the Electricity Industry Act 2010 sets out the Authority s functions: (1) The Authority's functions are as follows: (a) to maintain a register of industry participants in accordance with subpart 2, and to exempt individual industry participants from the obligation to be registered: (b) to make and administer the Electricity Industry Participation Code in accordance with subpart 3: (c) to monitor compliance with the Act, the regulations, and the Code, and to exempt individual industry participants from the obligation to comply with the Code or specific provisions of the Code: (d) to investigate, and enforce compliance with this Part, Part 4 [Industry participants and consumers], the regulations, and the Code (see subpart 4 of this Part): 6

7 (e) to investigate and enforce compliance with Part 3 [Separation of distribution from certain generation and retailing] (see subpart 2 of Part 3): (f) to undertake market-facilitation measures (such as providing education, guidelines, information, and model arrangements), and to monitor the operation and effectiveness of market facilitation measures: (g) to undertake industry and market monitoring and carry out and make publicly available reviews, studies, and inquiries into any matter relating to the electricity industry: (h) to contract for market operation services (see sub-section (2)) and system operator services: (i) to promote to consumers the benefits of comparing and switching retailers: (j) to perform any other specific functions imposed on it under this or any other Act. (2) Instead of, or as well as, contracting for market operation services, the Authority may itself perform (a) the functions of the market administrator, if the Authority considers it desirable to do so; and (b) any other market operation service, but only on a temporary basis (such as when there is no current contract, or the contractor is unable or unwilling to perform the service). In addition, section 18 of the Act provides for the Authority to carry out reviews at the written request of the Minister on any matter relating to the electricity industry Organisational structure The Authority is governed by a Board comprising between five and seven members. The Board decides amendments to the Code. The Authority has four Board committees with delegated responsibilities for specific areas of activity. The current Board Committees are: Audit and Finance Committee; Compliance Committee; System Operations Committee; Undesirable Trading Situation (UTS) Committee. Five business groups deliver the functions of the Authority, each headed by a General Manager reporting to the Chief Executive. See the diagram below. 7

8 4.4. Significance of Authority records The Authority as the hub The Act changed the structure of the New Zealand electricity sector. The Authority is at the centre of the electricity market reforms that resulted in the introduction of the legislation and the establishment of the Authority, through which the government seeks to provide greater certainty and predictability about how the market will be governed and operated as well as reducing risks of intervention, and improving investor perceptions about market risk 1 As the industry regulator, the Electricity Authority is the hub of the New Zealand electricity industry and plays a pivotal role in ensuring that the electricity market is effective, efficient and equitable for the long-term benefit of the consumer. Every year between 2-8 billion dollars goes into the electricity market. The records created and managed by the Authority in fulfilling its functions provide primary evidence of how the New Zealand electricity industry and market works, including how it has changed over time. 1 Electricity in New Zealand, published by the Electricity Authority

9 Range of functions The Authority s role of regulator is not just limited to regulatory development and compliance activities, but goes wider to include: the enhancement of market performance through active monitoring and release of information on the market; increased stakeholder involvement in developing the Code; market facilitation measures under which the market operates; information and educational activity; and contracting service providers to operate the New Zealand electricity system and market in accordance with the Code. Records documenting these wider functions provide evidence of the implementation and the success of the major market reforms. For example the What s my Number? campaign has had a major effect on providing consumers with a mechanism through which they can assess whether changing power suppliers will provide savings and choose to switch suppliers. It is estimated that using the What s my Number? website tool has resulted in an average national household saving of $165 per switch, and annual savings from June to December 2011 of $8.7 million. Such a programme is an example of not only a successful and nationally significant social marketing and consumer education programme, but also of performance of one of the new functions of the Authority. Memory of the sector As part of the Authority s wider role a significant amount of data and research material about the electricity industry in New Zealand is gathered and maintained by the Authority for long term research, analysis, monitoring and modelling purposes. The Authority considers itself to be the memory of the electricity industry and to that end not only gathers and manages information to fulfil its current functions, but also to support on-going research and robust analysis in the industry. For example, The Authority holds hydrology data dating back to the 1930s about lake levels and electricity production that are not held by any other agency and which combined with other datasets can create data reuse opportunities for those with an interest in the sector. The Authority considers that as the regulator, it is responsible for maintaining the data supplied to it beyond the period of time that the other players in the electricity market (such as the System Operator, the clearing manager etc.) may need it for their operational purposes. The contracted service providers may change over time and may keep the data for a more limited time; however the Authority holds the central data warehouse containing data supplied primarily by service providers providing for a national source of historical and current electricity market data. In addition, the Authority owns most of the hardware used by the primary Service Providers of data and has perpetual licences to the software used for the data. 9

10 In order to carry out its roles and functions, the Authority creates and manages information and data from different sources. The diagram below provides a broad picture of information and data flows between consumers, industry participants, service providers, the Authority and the wider government. It illustrates the complexity of the information environment in which the Authority operates. Consumers Participants Service Providers Electricity Authority Wider Government Supply data/information to Participants Supply data/information to consumers eg invoices, notices, requests for information Supply data/information to Electricity Authority Supply data/information to Consumers e.g. What s My Number? Supply data/information to Providers Supply data/information on behalf of the Authority to Participants eg system outages, code information, dispatch information Supply commercial data/information to Participants Supply data/information to Authority e.g. ACID or RAD data Supply data/information to Participants Supply data/information to Consumers eg wholesale information transfer system Supply data/information to Authority Supply data/information to Providers Participants pass data/ information to each other such as invoices EIEPs, arrangements Service Providers pass data/ information to each other Supply data/information to Government Supply data/information to Electricity Authority Accountability information and documents 4.5. Recordkeeping environment Information and records management oversight Currently there is approximately one full-time equivalent (FTE) position dedicated to records management activities in the Authority. The Knowledge and Information Manager, who reports to the Chief Information Officer (CIO), is approximately.5 FTE covering records management. An Information Management and Web Administrator provide administrative support assisted by the Organisation Support team comprising approximately another.5 FTE. Project support is contracted when required. Database administration for the electronic document management system is primarily provided by the Knowledge and Information Management team. Technical support is provided by the IT team with additional support from a vendor as required. 10

11 The Information Manager position is designed to provide a central authority for the Authority on information management including strategic development, policy development, and advice for the management of both hard-copy and electronic records, and to support completion of a programme of work to improve information and records management within the Authority. Current hard-copy records A centralised approach to the management of hard-copy records is underway, there is a central filing location and a file naming convention will be established aligned to a newly developed file plan implemented in the electronic document management system. However, there is no commonly understood figure for the quantity of current hard-copy records held within the Authority as central management is not yet in place. Each team or individual has to date determined their own hard-copy filing requirements, which has resulted in some formal recordkeeping, but staff tend to hold informal collections of hardcopy records around their desks. Many staff hold minimal amounts of hard-copy records, because use of electronic systems is well ingrained in Authority workplace culture, and because the Authority is less than two years old most records are in electronic format. Therefore the primary focus is on best use of the electronic resources available and digitising the few paper records it holds as part of business process. When records are received from external parties and digitised the paper copy is currently retained as the evidential record. The recent introduction of the Authority to Retain Digitised Public Records in Electronic Form Only by Archives New Zealand will support the Authority in reexamining its reliance on the hard copy record. Non-current hard-copy records (those that relate to completed work/projects) Non-current hard-copy records consist primarily of Electricity Commission records which are stored off-site with Online Security. There are 111 boxes (c. 37 lm) of hard-copy files stored off-site as at June 2012, most of which date back to the Electricity Commission. All are listed. The earliest identified file dates from 2003 when the Electricity Commission was established. Current electronic documents Authority staff file their current electronic documents in either the organisation-wide electronic document management system or in shared drives that are primarily based on the structure of the organisation. There are currently some 500GB of data stored between these two systems. The Authority inherited the electronic document management system (imanage FileSite) from its predecessor, the Commission, who inherited it from the Ministry of Economic Development. Recent projects have included an upgrade of the system, a revision of the file plan and security model within the system and a training refresher for staff. These projects have resulted in improvements to the way records are managed across both imanage and 11

12 the shared drives. The Authority s current operating platform is compliant with the common operating platform for government; Windows 7 and Office Databases and Datastores The Authority has a small number of business information systems and specialist data stores in place. Alongside the systems and data stores listed below it also has responsibility for data held by its service providers. It is committed to releasing as much as possible of the non-commercially sensitive high value data it holds. The internal systems and data stores are: Navision LEX ACID Finance management information system. Covered by Archives New Zealand General Disposal Authority 6. Legal matters database. Covered by Archives New Zealand General Disposal Authority 6. The Authority Compliance Investigation Database. See further detail in class description for class 2: Regulatory Compliance. RAD Retail audit database. See further detail in class description for class 2: Regulatory Compliance. Data warehouse Holds a collection of electricity industry data covering hydrology information (dating back to the 1930s), the Centralised Data Set, metering data, pricing data, registry data, reconciliation data. Currently holds about 410GB of data which is growing daily. See further detail in class description for class 6: Sector and Industry Datasets and Metadata. NAS (network attached storage) Holds data, code and models used to support analysis of market performance. Approximately 3 terabytes of data. 5. Methodology 5.1. Relevant precedent The Authority does not have an existing retention and disposal schedule and no records have been formally disposed of since the establishment of the Authority on 1 November A draft retention and disposal schedule was developed for the Authority s predecessor, the Electricity Commission; however the draft was not approved prior to the disestablishment of the Commission and it is believed that no records of the Commission were formally disposed of. 12

13 The work on the draft retention and disposal schedule for the Electricity Commission has been incorporated into this retention and disposal schedule for the Authority, and the Authority has retained custody of the records of the Commission where the functions were transferred to other agencies as part of the establishment of the Authority Approach The schedule was developed using the following methods: review of the Authority s current file classification structure in its electronic document management system; examination of selected representative Authority records (current and non-current from across the primary function areas of the Authority); review of a previous draft disposal authority relevant to Electricity Authority records; consultation with Authority staff to develop/review the schedule (see section 5.3); consultation with external stakeholders to review the schedule (see section 5.4) Internal consultation Agency staff who provided input for the development of the retention and disposal schedule were: Name [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] [name removed] Role Knowledge and Information Manager Manager Retail and Network Markets General Manager Market Performance Senior Energy Analyst General Manager Corporate Services General Manager Operations Development General Manager Legal and Compliance General Manager Market Design Legal Counsel Senior Investigator CIO Senior Adviser Assistant Adviser Market Operations 13

14 [name removed] [name removed] [name removed] Manager Market Operations Director Wholesale Chief Executive 5.4. External consultation The organisations listed below were asked to provide input on the draft schedule. Feedback from the external consultation was considered and included in the schedule as appropriate. As a result of feedback received from the external organisations consulted with, a number of changes to the draft retention and disposal schedule were made especially in response to feedback received from the Authority s Providers. In particular those changes related to Class 3 Market Operations and Service Provider Management and Class 6 Sector and Industry Datasets and Metadata. The changes involved the addition of more sub-classes and clarification of examples of records and disposal time periods in order to better meet the contractual and business needs of the Authority relating to the collection and management of industry information and data by the Providers. Name and Role Position Organisation [name removed] Commissioner Electricity and Gas Complaints Commissioner [name removed] Controller and Auditor General Office of the Auditor-General [name removed] Chief Executive Commerce Commission [name removed] [name removed] Head of Energy and integration NZX Ministry of Business, Innovation and Employment [name removed] Senior Business Manager Asia Pacific Jade Software Corporation (NZ) Limited [name removed] Risk & Performance Manager Transpower (System Operator) [name removed] Energy Markets Manager Transpower (Energy Market Services) [name removed] Information Manager Transpower [name removed] Manager Jade [name removed] General Manger EECA [name removed] Director Electric Power Optimization Centre 14

15 (EPOC) [name removed] EpeCentre [name removed] Senior Consultant Concept [name removed] Adjunct Professor University of Canterbury [name removed] General Manager, Corporate Services All Participants on Participants Register (see section 6.3 of this report) 5.5. Format of the schedule The retention and disposal schedule spreadsheet (attached as Appendix 1) has the following fields: Field name Class ID Record class Description and examples Trigger point for becoming non-current Total retention Disposal action Disposal criteria Business authority Description The reference number of the disposal class The broad class of records A description of the record type and examples of the records described When the record becomes non-current and thus can have retention periods and disposal actions applied The period of time for which the record is kept before final disposal The final disposal action on the record: D Destroy A - Retain as public archive Reference to the disposal criteria for the records The Electricity Authority position that has sign-off prior to the disposal of any records 5.6. Use of General Disposal Authorities The Authority has adopted the two Archives New Zealand General Disposal Authorities (GDAs) to cover standard disposal coverage across the records of the Authority s corporate functions. The two GDAs are: GDA6 Common Corporate Services Public Records GDA7 Facilitative, Transitory and Short-Term Value Records This retention and disposal schedule therefore only covers records that are not covered by the GDAs. 15

16 5.7. Disposal criteria The criteria for recommending the retention of public records as public archives are: Criterion Description A1 A2 A3 A4 A5 A6 A7 Provide proof of a particular event or agreement, document the rights/legal interests/ obligations of the Government, the electricity industry regulator, or the citizens of New Zealand, or permit the settlement of legal claims Provide evidence of the structure, organisation, administration, planning and decision-making of the electricity industry regulator Document the performance of a core function of the electricity industry regulator Provide evidence of and information about the electricity industry regulator's role, or involvement in the management and development of the electricity industry and market in New Zealand Provide information that has research potential in the areas of: - electricity generation and transmission - establishment of the New Zealand electricity market environment and its operations - history of the establishment of the Electricity Authority or its predecessor organisation, the Electricity Commission Provide evidence of the electricity industry regulator's interaction and relationships with: - partner agencies - New Zealand electricity industry groups - electricity industry participants - other New Zealand agencies/stakeholders - the wider New Zealand community Provide authoritative data sources for information relating to the management and monitoring of the New Zealand electricity market The criteria for recommending the destruction of public records are: Criterion Description D1 D2 D3 Concern routine administrative matters only, including duplicate records that can be obtained from other sources Concern routine operational matters only Contain information summarised, more complete and/or more readily accessible in other records recommended for retention or elsewhere, including publication to the web or in hard-copy 16

17 6. Description of classes 6.1. Class no 1 Regulatory Development Description The Regulatory Development class covers records documenting the development of the electricity regulatory environment through the Code (referred to under the Commission as the Electricity Governance Rules 2003 (Rules)) 2, voluntary arrangements and methodologies to ensure that the government s objectives for the electricity industry are met. The change in the regime from the Rules to the code included a change in the authority to make amendments. This class therefore covers records of the changes made to the regime that must be approved by the Minister (as under the Rules regime) and more recently by the Board (under the Code regime). This includes: investigation and development records; code proposals and amendments; advisory group records; regime management records. Investigation and development records relate to investigation of issues that may result in amendment to the regulatory regime, development of guidelines, and market best practice methodologies. Activities documented cover investigation of issues with the regulatory regime, analysis of industry issues, recommendations to the Minister, Cabinet papers, approvals, data and models used for input into analysis reports (including the source code of any models developed). Code proposals and amendments document the proposals and the processes related to the receipt of proposals (from industry participants, consumer groups, members of the public etc.) for changes to the Code. This sub-class also includes the records created during the drafting of amendments to the Code. Advisory group records are the records of the formal Advisory and Technical groups set up to provide advice and input on the operation of the regulatory regime as well as on other policy and work programme matters. The Authority has three standing advisory groups. They are: Retail Advisory Group (RAG); 2 The Rules were slightly different in content to the Code 17

18 Wholesale Advisory Group (WAG); Transmission Advisory Group (TAG); In addition, the Authority established an ad-hoc advisory group which completed its analysis and recommendations in August This was the Transmission Pricing Advisory Group (TPAG). There is also a Security and Reliability Council. Current technical groups that provide independent advice to the Authority are: Code of Practice 10.5 Review Panel; Locational Price Risk Technical Group; Loss Factor Review Panel; Multiple Frequency Keepers Project: AGC Technical Stakeholders Group; Standing Data Formats Group; Data Clean-up Technical Group; Settlement and Prudential Security Group. Records included in this sub-class are: terms of reference documentation, minutes of meetings, agendas and discussion papers, consultation documents, correspondence. Regime management records are those records created in relation to changes and management of the regulatory regime. A core function of the Authority is to oversee and manage the regulatory regime and this sub-class of records effectively documents that function. It includes records documenting: Preparation of recommended changes to the regulatory regime Consultation documentation Analysis Approvals Recommendations to the Minister Cabinet papers Regime reviews 18

19 Value Routine investigation and development records such as administrative and low-level working papers are of short term business value only because they are superseded by either more formal or significant documentation from investigation and development projects, or more high-value records that provide better quality evidence of the functions being performed. The records are therefore recommended for destruction as they are of short-term value only. All other sub-classes of records in this class are recommended for retention and public archives as discussed below. The significant records created as part of investigation and development (such as analysis of industry issues, recommendations to the Minister, Cabinet papers, approvals, data and models used to input into analysis reports) activities are recommended for retention as they provide evidence of one of the substantive functions of the Authority as well as information about the role of the Authority within the sector and its involvement in the industry. Records documenting Code proposals and amendments provide evidence of the development and amendments to the legal regime under which industry participants must operate, as well as evidence of a major function of the authority and its role within the electricity industry in New Zealand. The records created by the formal Advisory and Technical Groups provide evidence of the Authority s interaction with community and sector based representatives to support good operation of the regulatory regime and electricity market. Records documenting the management of the regulatory regime provide evidence of how the Authority fulfils parts of its regulator role and how it may go about managing and making changes to the regime it manages, and the influence that may have on the electricity industry. 19

20 Recommendations Records recommended for retention as public archives: Reference Record type Description Disposal no. criteria 1/1 Investigation and Records related to investigation of issues A3, A4 Development Records - Significant which may result in amendment to the regulatory regime, development of guidelines and market best practice methodologies. Includes investigation of issues with the regulatory regime, analysis of industry issues, recommendations to the Minister, approvals, data and models used to input into analysis reports (including source code of any models developed). 1/3 Code Proposals and Records of proposals for change received and A1, A3, A4 Amendments amendments drafted to the regulatory regime. 1/4 Advisory Groups Records Records of formal Advisory and Technical A3, A4 Groups set up to provide advice and input on the operation of the regulatory regime as well as on other policy and work programme matters. Examples of groups are: Transmission Advisory Group, Wholesale Advisory Group, and Locational Price Risk Technical Group. Examples of records include terms of reference, minutes of meetings, agendas and discussion papers, consultation documents, correspondence, and presentations. 1/5 Regime Management Records Records of change to and management of the regulatory regime. Includes: - preparation of recommended changes; - consultation documentation; - analysis; - approvals; - recommendations to the Minister; - recommendations to the Board - regime reviews A3, A4 Records recommended for destruction: Reference no. Record type Description Disposal criteria 20

21 1/2 Investigation and Development Records - Routine Administrative records and working papers not of a significant nature related to regulatory development activities D2 21

22 6.2. Class no 2 Regulatory Compliance Description The Regulatory Compliance class covers records documenting the enforcement of compliance with the regulatory regime, and the granting of any exemptions from the regime. The Authority is required to make and administer the Code, to monitor compliance with the Act, Regulations, and the Code, and to exempt individual industry participants from the obligation to comply with the Code or specific provisions of the Code. This class also includes compliance records for the superseded regulatory regime of the Electricity Governance Rules It should be noted that some compliance exemptions granted under that regime still apply. This class includes: compliance framework and process records; records of breaches; compliance reporting; exemption records; Compliance framework and process records are those records that outline the processes and methodologies of the regulatory compliance environment. They include policies and procedures. Records of breaches in the breach file are the records documenting the administration of the breach process when an industry participant fails to meet its obligations under the regulatory regime. The records includes: Breach notifications Background investigative research Breach related correspondence Settlement agreements All alleged breaches are registered in ACID - the Authority Compliance Investigation Database and end up residing in the Authority s electronic document management system. The database contains summary information of the alleged breaches and is used to support easy management and analysis of breaches. The information in ACID can be considered to be similar to working papers the final reports or summation of which ends up in the EDMS via workflow in the appropriate folder with related documents which captures the context of the investigation. The document folders which contain the files retain investigation code metadata from ACID. Each alleged breach is looked into and reported to the Compliance Committee with recommendations made. The Authority may then formally investigate some of these alleged breaches, and potentially could lay a formal complaint with the Rulings Panel. 22

23 Compliance reporting records are those that report on and summarise compliance activities in a manner suitable for regular internal and external reporting. They contain summary information about compliance activities and breaches along with appropriate commentary and analysis. Regular compliance reports are provided to the Compliance Committee and are covered in class 7.2 Exemption records are those records that document the management of the exemption process and actual granting of exemptions within the regulatory regime. This includes exemption notices, exemption reports and related correspondence, applications, consultations, and submissions. Part 3 of the Electricity Industry Act Compliance records are those that document the management of notifications, consultations and exemptions related to that particular piece of legislation. Value Records of breaches to the regulatory regime and exemptions granted from the regime are recommended for destruction. They are typically detailed case records that are of an operational nature and only relevant for a limited time. Summary information of both types of records can be found in the regular compliance reporting records that are recommended for retention as public archives as part of the Compliance sub-committee papers (class 7/2). The breach records are therefore recommended for destruction. Records from this class documenting the compliance framework and processes, compliance reporting, and compliance with Part 3 of the Electricity Industry Act 2010 are all recommended for retention as public archives. Compliance framework and process records provide context for the management of regulatory compliance by the Authority and the other sub-classes of records in this class as they outline how the Authority manages the compliance aspect of its functions. Compliance reporting records provide summary information about the levels of compliance by industry participants with the regime. Compliance reports are provided regularly to the Compliance Committee and therefore are to be retained with other Committee records in class 7.2. This set of compliance reporting records are therefore recommended for destruction as they are summarised and available through the Compliance Committee records. Recommendations Records recommended for retention as public archives: Reference no. Record type Description Disposal criteria 23

24 Reference Record type Description Disposal no. criteria 2/1 Compliance Framework and Records outlining the processes and A3, A4 Process Records methodologies of the regulatory compliance environment Includes policies and procedures 2/5 Part 3 of the Electricity Management of notifications, consultations, A3, A4 A1, Industry Act exemptions related to the Electricity Act 2010 Records recommended for destruction: Reference Record type Description Disposal no. criteria 2/2 Records of Breaches in the Records documenting the administration of D2, D3 Breach File the breach process when an industry participant fails to meet its obligations under the regulatory regime. Includes: - Records held in ACID database - Breach notifications - Reports - Background investigative research - Breach related correspondence - Settlement agreements 2/3 Compliance Reporting Includes regular reporting on compliance D3 activities to the Compliance Committee 2/4 Exemption Records Records documenting the management of the process of granting exemptions to the regulatory regime. Includes: - Exemption notices - Exemption reports - Related correspondence - Applications - Consultations - Submissions D2, D3 24

25 6.3. Class no 3 Market Operations and Service Provider Management Description The market operations and service provider management class covers records documenting the facilitation of the operation of the electricity market for industry participants and consumers that ensures the market operates in a fair and efficient manner. This includes sub-classes of records relating to: Service provider management Participant register Service provider input and output data Market operational issues Undesirable trading situation records Market operations documentation Audits, approvals and certifications Service provider management covers the functions carried out by the Authority relating to contract management and performance monitoring with Market Operations Service Providers. Clause 3.1 of the Code provides for the Authority to appoint market operation service providers. The Authority contracts a number of market operation service providers that operate under individual contracts as agreed with the Authority. The market operation service providers currently contracted are: Registry Manager - Jade Software Corporation (NZ) Limited; Reconciliation Manager NZX Limited; Pricing Manager - NZX Limited; Clearing Manager - NZX Limited; Wholesale Information and Trading System (WITS) Manager - NZX Limited; System Operator - Transpower; Financial Transmission Rights (FTR) Manager - Energy Market Services (EMS), a division of Transpower. The Authority oversees the performance of the services of each service provider and manages the service provider contracts and the agreements covering system hardware and software used by the service providers to support data collection and management. This includes significant records 25

26 covering activities such as contract negotiation and development, relationship management, performance management and reporting, audits and system documentation attached to the contracts. Some more routine/low-level administrative records are also created to support these activities. Data collected by providers as part of funding from the Authority is covered in Class 6 Sector and Industry Datasets and Metadata. The Electricity Industry Act requires industry participants to register and supply registration information to the Authority. The registration information that participants supply is in the participant register. Under the Act the following are participants: a retailer; a distributor; a generator; any other person who owns lines; Transpower; a person who consumes electricity that is conveyed to the person directly from the national grid; a person other than a generator who generates electricity that is fed into a network; a person who buys electricity from the clearing manager; a market operation service provider; a metering equipment provider; a metering equipment owner; a person that operates an approved test house; a load aggregator; an ancillary service agent; a trader in electricity; and any other industry service provider identified in regulations made under section 109 (currently the FTR manager). This sub-class includes the initial registration and forms provided by participants plus any updates supplied to the Authority after registration. There were 164 participants registered as at August The Service Providers maintain data management systems funded by the Authority to capture and support all operations of the market. Examples of the data/records included are: Bids and offers Pricing information Hedge information Submission information e.g. ICP days, electricity supplied, shape files etc. provided by the Authority and reconciliation participants Reconciliation information Registry switching and maintenance files Registry report requests Prudential, payment, bank account information Access applications and approvals 26

27 Records of market operational issues are those that document operational cases and disputes about the day to day operations of the market. For example, cases relating to metering, volume, prudential and invoice disputes, and investigations of pricing errors. Undesirable Trading Situation (UTS) records are those records that document claims of UTS, investigations determining if a UTS has occurred and remedies sought. An undesirable trading situation means any contingency or event that: threatens, or may threaten, trading on the wholesale market for electricity; and would, or would be likely to, preclude the maintenance of orderly trading or proper settlement of trades; and in the reasonable opinion of the Authority, cannot satisfactory be resolved by any other mechanism available under the Code. If the Authority finds that a UTS is developing or has developed, it may take any of the steps prescribed by the Code. Records relating to UTS include: investigation records; minutes of meetings; investigation correspondence; recommendations to Board. Market operations records are those that document the framework and processes associated with the operation of the electricity market. This includes operational policies, procedures, guidelines, permissions and authorisations, and monitoring of the market. The records in this subclass form the basis for understanding how the electricity market operates and is maintained. Please note these are different records to those named market operational issues as the operational issues are to do with operational case and disputes where the aforementioned framework, processes and practices have not been followed. Audits for approvals and certifications cover records of activities that fulfil a number of requirements in the Code for audits to take place. The Code requires some audits to be conducted periodically, while others are undertaken at the discretion of the Authority, or under specific service provider agreements. Audits may be of distributors, traders, approved test houses or metering equipment providers to examine them to see if they comply with the Code and to determine if they are appropriate to be a participant. The records of the audits are managed through the Retail Audit Database (RAD) and end up residing in the Authority s electronic document management system. The information in RAD can be considered to be similar to working papers the final reports or summation of which ends up in the EDMS in the appropriate folder with related documents which captures the 27

28 context of the investigation. ACID and RAD are integrated systems designed to work with imanage as the final repository. The Authority has approved audit guidelines for specific audit types and approved auditors to undertake retail audits. This sub-class covers records documenting the framework and processes associated with retail audits and auditing. This includes records documenting: the development of approved audit guidelines; auditor approval documentation/certification; reviews of audit results; audit registers; audit summaries. The Market Administrator can also call audits in response to market activity that they believe requires investigation. Records of such audits will include: Background information; Investigation/audit records; Final audit results documentation. 28