New consultation on settlement residue and changes to the Benchmark agreement

We’re seeking feedback from stakeholders on Code changes to the Benchmark agreement which will enable Transpower to recover costs for calculating settlement residue payments under the settlement residue allocation methodology (SRAM).

Our consultation paper proposes to amend the benchmark agreement to include a provision that requires transmission customers to pay Transpower a SRAM processing charge that may be deducted from any settlement residual rebates. We have proposed an amendment to the Code to deem these default terms and conditions to be included in all current transmission agreements (including certain earlier agreements that are not based on the Benchmark agreement).

Additionally, the Benchmark agreement needs to be updated to account for the new Transmission Pricing Methodology and other minor changes to reflect changes in the law that have occurred in recent years. We are proposing amendments to the Benchmark agreement to incorporate these changes and adding the Benchmark agreement into the Code as its own Schedule. The minor and technical changes will also be deemed to be included in all transmission agreements based on the Benchmark agreement.

Have your say! Read the consultation paper and make a submission by 5pm, 30 June 2023. We look forward to receiving your feedback.