Options for Determining Transmission Service Definitions
About this Consultation
Rule 4.4 of section II of part F of the Electricity Governance Rules 2003 (“the Rules”) requires the Commission to develop benchmark agreements for connection to the transmission grid and/or use of the grid. The benchmark agreements are intended to provide a basis for Transpower and designated transmission customers (participants determined by the Commission pursuant to a process set out in rule 2.2 of section II of part F) to negotiate transmission agreements, and are intended to become default transmission agreements in the event parties are unable to agree contracts before a date specified by the Board (rule 3.1.2 of section II of part F).
Rule 18.104.22.168 of section II of part F specifies that the benchmark agreements must include service definitions, service measures, and service levels to the extent practicable.
The Commission is preparing draft benchmark agreements containing service definitions and measures, and processes for determining service levels on a case-by-case basis. The draft benchmark agreements will also contain other technical and commercial terms and conditions necessary for them to be used as default contracts.
- Options for determining transmission service definitions consultation paper
- Corrigendum to TSD options paper (5 May 2005)
This paper provides high-level policy options and recommendations regarding the scope and content of the benchmark agreements, which need to be decided before detailed draft agreements can be completed. The paper also discusses changes to the Rules that may be required to complement the benchmark agreements, to achieve effective and efficient provision of transmission services.
In particular, the paper discusses:
- the scope of services to be covered by benchmark agreements, the allocation of risk between Transpower and its customers, and the various service definitions and measures appropriate to each case;
- who should be responsible for specifying, monitoring, and enforcing service commitments from Transpower, and how those activities should be regulated, if at all;
- whether performance incentives should be adopted to encourage Transpower to meet its service commitments, and if so, what types of performance incentives should be adopted; and
- the mechanisms through which transmission services and performance incentives should be specified and enforced (e.g. via the Rules or by contract).
This page is related to: Transmission.