On 10 October 2012, the Authority released an issues paper that sets out the process for development and approval of a transmission pricing methodology (TPM), along with draft guidelines for Transpower in preparing a new TPM.

Transmission pricing methodology review - issues and proposal

As part of this process the Authority also held a number of conferences, workshops and forums.

Assistance with the TPM 

The Authority engaged Sapere Research Group (Sapere) in 2011 for a fixed term contract to assist the Market Design team (Retail and Network Markets) with Code development and administration, including in relation to Part 12 of the Code.

The contract is non-exclusive and the Authority and Sapere have agreed arrangements for managing any conflicts or potential conflicts arising from past or concurrent work by Sapere for other parties. In particular, the Authority and Sapere have agreed that Sapere staff undertaking work for the Electricity Networks Association (ENA) will be excluded from the work undertaken for the Authority, and will not have access to files relating to that work, because of the potential for ENA work to overlap with the work that the Authority may ask for from Sapere.

Staff from Sapere are assisting the Authority with aspects of the transmission pricing methodology (TPM) review. The Authority understands that the Sapere staff working for the ENA may assist the ENA with its submission on the TPM review issues and proposal consultation paper. In addition to the existing arrangements for managing conflicts, the Authority will ensure that the ENA submission on the TPM review will be considered by the Authority without any comment or input from the Sapere staff assisting the Authority.