TPM consultation opens on emerging technologies

We’re seeking feedback on proposed changes to the transmission pricing methodology (TPM) so it better encourages efficient investment and ensures a level playing field for new and emerging technologies (such as grid-scale batteries).

Currently, there are issues with the way charges are allocated under the TPM which are causing disproportionately higher charges for these technologies in comparison to other types of connections. The materiality of these issues has become apparent now due to detailed modelling recently provided to the Authority. To ensure the TPM is future-proofed and fit for purpose, we propose to:

• change the way connection charges are allocated for shared connection assets so the allocation is more proportionate
• change the way the residual charge is allocated for new customers and changes in consumption so that the effect on the residual charge of increased consumption is more consistent across customers.

The Authority is concerned that without these amendments, there could be barriers to efficient investment, including in energy storage technologies, which could hinder the roll out of flexibility services and assets used to manage peak demand.

The proposed amendments would encourage efficient investment and ensure a level playing field for those looking to invest in storage technologies. This will ultimately ensure consumers benefit through improved security of supply and relatively lower electricity prices.

We welcome your feedback on our proposals by 5pm 17 September 2024.

View consultation