Criteria for assessing alignment against the Information Disclosure Guidelines and Pricing Principles
We have not proposed full standardisation of distribution tariff structures in our recent consultation paper - MUoSA Consultation 11 August 2011.
A prescriptive approach was not pursued because of the lack of any clear benefits versus the costs.
However, while there were no proposals for full standardisation of tariff structures, it was noted that we would continue to address the efficiency of distribution tariff structures through the distribution pricing principles project.
Our work in this area builds on the earlier work undertaken by the Electricity Commission (the Commission). In March 2010 the Commission published a set of Pricing Principles and Information Disclosure Guidelines (pricing principles and guidelines). The pricing principles and guidelines were designed to facilitate distributors developing more efficient and pro-competitive pricing structures, and making information available to stakeholders to assess whether distributors are doing so.
We have completed our first review of the degree of alignment with the guidelines and the extent to which distributors have considered the principles. This review has resulted in a consultation paper that further refines the guidelines and sets out initial criteria for assessing alignment with the pricing principles.
- the criteria in Appendix A of the consultation paper which provide further guidance on the application of the information disclosure guidelines); and
- the initial criteria for assessing alignment with the pricing principles set out in 3.4.6 of the consultation paper.
An additional purpose is to bring to the attention of distributors and other interested parties the results of the initial review of the alignment of a sample group with the guidelines undertaken by Concept Consulting Group Limited on our behalf. This report is attached as Appendix B of the consultation paper.