General news

TPM consultation papers due for release

  • Transmission
  • Wholesale

Subject to final confirmation, we expect to release two consultation papers on TPM- and SRAM-related Code amendments on 17 May 2023. We are giving early notice to enable stakeholders to prepare to submit any feedback.

The Stage 1 review of the benchmark agreement consultation focuses on the proposal 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. It also includes updates to the benchmark agreement to reflect the new TPM and other legislative changes. We intend to invite stakeholder feedback from 17 May to 30 June 2023.

Our second consultation focuses on amendments to correct issues with the TPM. It sets out amendments to correct ten issues identified during TPM's implementation. We intend to address the following issues:

  1. Minor changes to the TPM (such as typographical errors).
  2. Resolve a workability problem with the cap recovery charge calculation.
  3. Clarify that Transpower can change the Benefit Based Charge (BBC) allocation method for post-2019 Benefit Based Investments (BBIs).
  4. Apply the most appropriate benefit factors to calculate starting BBC allocations for new customers.
  5. Allow Transpower more flexibility in the calculation of regional Net Private Benefit (NPB) under the price-quantity method for BBC allocation.
  6. Change the treatment of non-asseted commissioned assets in calculation of BBC covered costs.
  7. Ensure the most relevant information about the BBC simple method allocators is published.
  8. Corrections to reduction event adjustment factor formula for the residual charge
  9. Apply the BBC simple method to high-value transmission investments that change classification from interconnection to connection.
  10. Clarify that assessment of prudent discounts requires consideration of settlement residual rebates.

We expect to invite stakeholder feedback from 17 May to 26 May 2023.

We thank stakeholders in advance for taking the time to provide feedback.

Related News

Improving the financial transmission rights market

In 2022, the Electricity Authority consulted on an Issues paper about whether market settings are fit-for-purpose in the financial transmission rights (FTR) ma…

Spot market price volatility in May 2023

In May 2023, the electricity spot market experienced extreme price volatility. Spot prices swung between $0.01 and $3,350/MWh. However, despite occasionally hi…

New consultation on Transmission Pricing Methodology

We're seeking stakeholder and industry feedback on our new consultation - Amendments to correct issues identified in the new Transmission Pricing Methodology (…