Decision on settlement residue funding

In May 2023, we consulted on proposed changes to the Electricity Industry Participation Code 2010 (Code) to enable Transpower to recover its costs of administering the settlement residual allocation methodology (SRAM). We would like to thank all those who made a submission. View submissions.

Following consultation and analysis, we have decided to amend the Code and benchmark agreement (effective 1 October 2023) to include default terms which enable Transpower to recover its SRAM administration costs. The amendments 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).

We have also decided to update the benchmark agreement to reflect both the new transmission pricing methodology, recent law changes, and to include the benchmark agreement as its own schedule in the Code. It will be renamed the default transmission agreement template.

Find out more:

• Decision paper
• Default transmission agreement 2023 amendment - Certified instrument