10 March 2017

 

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

 
 

Contents

 
 
 
 
 
 
 
 

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

 
 

We have received submissions on the TPM supplementary consultation paper and these are available on our website. The Board met on 9 March and has 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 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, and will provide details about that next week. 

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