Consultation on proposed minor TPM amendments

The Electricity Authority Te Mana Hiko is seeking feedback on proposed amendments to the Transmission Pricing Methodology (TPM) to correct an issue identified in conjunction with Transpower. The issue arises from the calculation of benefit-based charges for benefit-based investments made after 2019 when new customers connect to the grid.

In some cases, under the current TPM these investments may attract benefit-based charges which are higher than the benefit that these investments provide. This is against the principles of the new TPM, whereby those who set to benefit from investments will pay for them. This could lead to poor outcomes for consumers as it may discourage new investment in generation and lead to inefficiencies in the industry.

We’re proposing a technical and non-controversial amendment to correct this issue, by applying a dollar per MWh cap on transmission charges for certain customers that are affected by the issue.

The proposed method involves:

• applying the status quo adjustment allocation
• comparing the status quo allocation (in dollars per MWh) to that of the comparator(s) that is electrically closest to the new connection location
• adopting the lower of the status quo or the comparator allocation as the final adjustment.

We welcome submissions on our proposed amendments to network.pricing@ea.govt.nz by 5pm on 23 January 2024.

View consultation paper

View draft Code amendment

View TPM amendment proposal form from Transpower