Decision on TPM amendment on allocation charges

We have decided to amend the transmission pricing methodology to correct an issue identified in late 2023.

The amendment will correct an issue with benefit-based charges for new transmission customers under the transmission pricing methodology’s simple method adjustment provision.

We have decided to implement the correction as proposed in our consultation in early 2024, where a dollar-per-MWh cap on transmission charges will be applied to charges for those transmission customers affected by the issue.

The correction will fix the issue where new customers connecting to the grid might incur higher benefit-based transmission charges under the simple method than the benefits they receive from the relevant low-value grid investments. If not addressed, this issue could discourage new investment and grid connection.

This amendment comes into force on 10 April 2024.

Read our decision paper