Do you agree with the proposal that the deadline for surrenders and repayments is 60 working days from the date a notice is sent? If not, why not? Do you agree with the proposal that industrial allocations can be transferred to a consolidated group account? If not, why not? Do you agree with the proposal that account operators continue to operate NZ ETS accounts until a succession plan is in place? If not, why not? Do you agree with the proposal that units should vest in the Crown if the account operator chooses to close the account? If not, why not? Appendix 1 – Impact analysis for auctioning This appendix provides the full impact analysis for auctioning, divided into four sections: bidding formats pricing type frequency participation. Each section provides a qualitative description of how the various options perform against the identified criteria. Impact analysis of bidding formats Criteria: Complexity and administrative costs Ascending clock auctions are more complex Ascending clock auctions require complex rules to function well. Participants are incentivised to make serious bids early, rather than late, in the auction. Bids are also determined multiples times (adding costs for participants). By contrast, in a sealed-bid auction, a bidder needs to only determine how to bid once. Sealed-bid, single-round may be easier to understand as it involves one round only. Bidding decisions may be easier to make in ascending clock auctions, however this benefit is less important in the presence of a well-functioning spot market Ascending clock auctions provide informational feedback in each round, which helps auction participants in making bidding decisions. While sealed-bid, single-round auctions require preparation and ex-ante decisions about the bids auction participants submit. However, a spot market helps reveal similar information to an ascending clock auction, so the
Do you agree with the proposal that the deadline for surrenders and repayments is 60 working days from the date a notice is sent? If not, why not? Do you agree with the proposal that industrial allocations can be transferred to a consolidated group account? If not, why not? Do you agree with the proposal that account operators continue to operate NZ ETS accounts until a succession plan is in place? If not, why not? Do you agree with the proposal that units should vest in the Crown if the account operator chooses to close the account? If not, why not? Appendix 1 – Impact analysis for auctioning This appendix provides the full impact analysis for auctioning, divided into four sections: bidding formats pricing type frequency participation. Each section provides a qualitative description of how the various options perform against the identified criteria. Impact analysis of bidding formats Criteria: Complexity and administrative costs Ascending clock auctions are more complex Ascending clock auctions require complex rules to function well. Participants are incentivised to make serious bids early, rather than late, in the auction. Bids are also determined multiples times (adding costs for participants). By contrast, in a sealed-bid auction, a bidder needs to only determine how to bid once. Sealed-bid, single-round may be easier to understand as it involves one round only. Bidding decisions may be easier to make in ascending clock auctions, however this benefit is less important in the presence of a well-functioning spot market Ascending clock auctions provide informational feedback in each round, which helps auction participants in making bidding decisions. While sealed-bid, single-round auctions require preparation and ex-ante decisions about the bids auction participants submit. However, a spot market helps reveal similar information to an ascending clock auction, so the