The Authority is currently considering the submissions and cross-submissions it received on the Transmission Pricing Methodology: 2019 Issues Paper. We appreciate the time and effort stakeholders have invested in providing their views.

The purpose of this update is to explain our thinking on the process and in particular further engagement with stakeholders from this point.

While the Authority is still considering the final shape of the new TPM guidelines, the submission process has confirmed to us that:

  • the case for changing the Transmission Pricing Methodology is clear
  • there are a number of issues on which no consensus will be reached, for example the treatment of historic assets
  • there is a need to conclude the debate.

The Authority expects to engage with submitters in a range of ways, as we work towards making final decisions on the TPM guidelines:

  • The Authority Board will hear oral submissions on 2 December 2019 – if you want to make an oral submission but have not contacted us to confirm, please do so by 5pm on 26 November 2019
  • In the new year the Authority is likely to:
    • engage further on the cost benefit analysis, acknowledging stakeholders will wish to understand the Authority’s thinking on the concerns raised in two expert reports. The Authority is confident that changing the TPM guidelines will result in significant benefits to consumers, given the inefficient incentives for consumption and investment created by the current RCPD charge
    • engage further on the peak charge issue to support efficient grid use and transmission investment. We acknowledge stakeholders’ concerns about the potential implications from removing the RCPD charge, and instead relying on nodal prices, and any transitional peak charge proposed by Transpower. The Authority agrees this transition needs to be carefully considered
    • undertake further technical consultation on specific aspects of the proposed TPM guidelines.

At this point, we consider targeted engagement will be a more effective way to progress the TPM guidelines than a full conference (as suggested by some submitters).

We are targeting a final decision on the TPM guidelines in the second quarter of 2020.