General news

New consultation on Transmission Pricing Methodology

  • Transmission
  • Prices

We are seeking industry and stakeholder feedback on our new consultation – Amendments to correct issues in the new Transmission Pricing Methodology (TPM).

The Code does not require us to consult on these amendments as they are technical and non-controversial. However, we are keen to receive feedback on our proposed amendments as part of our commitment to transparency and collaboration in policy development.

We’re looking to address ten issues we’ve identified in the new TPM as detailed in our consultation paper and below:

  1. Minor changes to the TPM (such as typographical errors).
  2. Resolve a workability problem with the cap recovery charge calculation.
  3. Clarify that Transpower can change the Benefit Based Charge (BBC) allocation method for post-2019 Benefit Based Investments (BBIs).
  4. Apply the most appropriate benefit factors to calculate starting BBC allocations for new customers.
  5. Allow Transpower more flexibility in the calculation of regional Net Private Benefit (NPB) under the price-quantity method for BBC allocation.
  6. Change the treatment of non-asseted commissioned assets in calculation of BBC covered costs.
  7. Ensure the most relevant information about the BBC simple method allocators is published.
  8. Corrections to reduction event adjustment factor formula for the residual charge
  9. Apply the BBC simple method to high-value transmission investments that change classification from interconnection to connection.

Submissions are due by 5pm on 31 May 2023. We thank stakeholders for taking the time to prepare and submit on this consultation.

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