Transmission pricing methodology
Subpart 4 of the Electricity Industry Participation Code 2010 sets out a process whereby a transmission pricing methodology (TPM) is recommended to the Minister of Energy for inclusion into the Rules as a schedule to part 12 The purpose of the TPM is to ensure that the full economic costs of Transpower's services are allocated in accordance with the principles set out in clause 12.77 of part 12.
The Electricity Commission Board approved for publication the final decision paper (Decision Paper) including the draft final TPM (showing changes from Transpower's original proposed TPM of 23 June 2006). The Decision Paper records the Commission's final decision on the TPM following its consideration of submissions, cross-submissions and presentations at the Public Conference held on 26 April 2007. It focuses on the points raised by submitters at the Public Conference.
- Final decision paper
- Appendix 2: TPM final
- Appendix 2: TPM final marked up version
- Appendix 3: Letter from Transpower dated 11 May 2007
The TPM was recommended to the Minister on 29 June 2007. Pursuant to section 172I of the Electricity Act 1992 (Act), the Minister notified the amendment of the Electricity Governance Rules 2003 (Rules) under section 172H of the Act and were published in the Gazette on 12 July 2007.
These Rules came into force on 1 September 2007, with the new TPM being effective from 1 April 2008. Prices up until that date will be calculated as per the existing methodology.
This page is related to: Transmission.