This note is not part of the amendment but is intended to indicate its general effect.

This amendment to the Electricity Industry Participation Code Amendment (Transmission Pricing Methodology) 2022 comes into force on 20 December 2022.

The amendment makes several amendments to the Electricity Industry Participation Code Amendment (Transmission Pricing Methodology) 2022 (which itself amends the Electricity Industry Participation Code 2010 (Code) to correct errors in, and make clarifications to, the new Transmission Pricing Methodology (TPM, which replaces the existing Schedule 12.4 of the Code) contained in that amendment. It does so by replacing the existing Schedule to the Electricity Industry Participation Code Amendment (Transmission Pricing Methodology) 2022 with a replacement Schedule, with all of the required amendments made. For the avoidance of doubt, the Electricity Industry Participation Code Amendment (Transmission Pricing Methodology) 2022, as amended by this amendment, and with it the new TPM, still comes into force on 1 April 2023.

The amendments, with references to the relevant clauses in the TPM, are to—

• correct various minor issues (such as typographical errors):
• correct the formula for calculating rebates under the Type 1 First Mover Disadvantage (FMD) mechanism in clause 29(3):
• ensure that grid injection points (GIPs) are treated the same as grid exit points (GXPs) for benefit-based charge (BBC) adjustment events by amending clauses 81 and 87:
• ensure all new customers receive an appropriate BBC simple method allocation in relation to investments, including where the regional net private benefit of a regional customer group of which they are expected to be a member was previously assessed as zero, by including a formula in clause 83 that provides for this:
• correct omissions and provide greater clarity that the timing of an adjustment event should not affect whether relevant transmission charges are adjusted through amendments to clauses 3, 65, and 75:
• improve the workability of the continuing benefit-based investment (BBI) mechanism by amending clauses 81, 84, and 85:
• clarify how the Type 2 FMD mechanism works when only pair of a connection asset is anticipatory, to ensure the capital cost of anticipatory capacity is spread as intended by amending clause 26:
• provide Transpower with the ability to apply the most appropriate adjustment mechanism to historical events by amending the definition of pre-commencement adjustment event in clause 3:
• correctly identify a generator, that was treated as grid-connected for the purpose of calculating the allocations in Schedule 1 of the TPM guidelines (which are reflected in Appendix A of the TPM), as embedded, make the necessary corresponding adjustments and also make two further minor corrections to the allocations in Appendix A:
• correct the formula for calculating residual charge reduction events to ensure that reduction events are correctly assessed by amending clause 71.

More information about the amendments is available on the Electricity Authority's website https://www.ea.govt.nz/development/work-programme/pricing-cost-allocation/transmission-pricing-review/development/