14 March 2017


Welcome to Market Brief, the Electricity Authority’s weekly update on regulatory and market developments.




Transmission pricing methodology review: second issues paper: supplementary consultation: cross-submissions


As announced in our Special Market Brief on 10 March, we have decided to invite cross-submissions on the valuation method for determining the total and annual amount to be recovered under the proposed area-of-benefit charge for an investment.

In the supplementary consultation paper, we proposed that the valuation method would be the indexed historical cost or another method that was service-based and cost-reflective, if that would better promote our statutory objective.

This issue was discussed in paragraphs 3.37 to 3.67 of the supplementary consultation paper and is addressed in clauses 6 and 26 to 30 of the proposed TPM guidelines (Appendix E, available via the link below).

The Authority Board would like to receive cross-submissions on this particular issue to help it in its decision making. The closing date for the cross-submissions is 5 pm on Friday, 24 March 2017. The Board still expects to make its final decisions on the review of the TPM guidelines in April 2017.

We’re also planning to engage further on particular technical aspects of the CBA modelling via an online Q&A session with Oakley Greenwood, and will provide details about that as soon as possible.  

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Wholesale Advisory Group papers published


We have published papers from the Wholesale Advisory Group (WAG) meetings on 14 December 2016 and 8 February 2017. 

At both meetings, the WAG continued its review of the instantaneous reserve event charge and cost allocation regime.

On 14 December, the WAG considered submissions on its discussion paper and key points raised by submitters.

On 8 February, the WAG summarised its progress so far and examined in more detail issues considered at its 14 December meeting.

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Current consultations


Making hours-ahead price forecasts more accurate

We have published a consultation paper about ways to improve the accuracy of prices in the forecast schedules that are available up to 36 hours in advance of real-time.

Started: 21/02/2017; Ending 4/04/2017 5 pm

Requirements and processes for audits

We are consulting on inherent risk registers and updated guidelines for auditors and audited participants, to reflect changes to the Code that come into force on 1 June 2017.

Started: 28/02/2017; Ending 11/04/2017 5 pm

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