Consultations

We have released a consultation paper, and a supporting companion paper, on the implications of evolving technologies for the pricing of distribution services. Evolving technologies may include electric vehicles, battery storage units, smart appliances, consumer apps and distributed generators (including solar panels). These exciting technologies are starting to give consumers more choice and will further enhance competitive pressure in the electricity sector.

We believe distribution pricing structures will need to change in order to maximise the long-term benefits of evolving technologies for consumers. The consultation paper seeks submissions on these issues from interested parties. Wherever possible, we will also arrange one-on-one meetings with parties who request them.

The Electricity Authority has released a consultation paper to obtain feedback on its proposed decision-making and economic framework for the Distribution Pricing Methodology (DPM) Review.

The Authority will place submissions to the consultation paper on its website on Monday 25 June 2012, and will give parties until 5:00 pm Monday, 9 July 2012 to make cross-submissions.

Cross-submissions

Cross-submissions should be received by 5:00pm on 9 July 2012. The details of Authority's preferred formats, the process for receiving cross-submissions is the same as that set out below for submissions. As for submissions, your cross-submission is likely to be made available on the Authority's website.

Pricing principles and information disclosure guidelines (guidelines) for distributors to apply when formulating their pricing methodologies were published in March 2010. The pricing principles and guidelines and associated reviews of distributors' performance, are designed to facilitate distributors' achievement of improved pricing approaches. The objective of the pricing principles and guidelines is to improve competition and efficiency outcomes for the long-term benefit of consumers without recourse to prescriptive regulation which dictates how distributors should price their services.

After a review of pricing methodologies of a representative sample of distributors, the Authority invites submissions on:

1. the criteria in Appendix A of the consultation paper below which provide further guidance on the application of the guidelines published last year; and
2. the initial criteria for assessing alignment with the pricing principles.

An additional purpose is to bring to the attention of distributors and other interested parties the results of the initial review of their alignment with the guidelines undertaken by Concept Consulting Group Limited on behalf of the Authority.

Concept Report has been republished on 9 September 2011 to correct the information in Appendix D. The table in the appendix was revised to include Company I.