Transmission agreements are the contracts between transmission customers and Transpower.
Transpower and its designated transmission customers are required to have an agreement for the provision of transmission services (clauses 12.8 - 12.25 of the Code). Schedule 12.1 of the Code identifies designated transmission customers as:
- distribution companies
- major users that are directly connected to the grid
- generation companies that are directly connected to the grid.
Any individual transmission agreement entered into by Transpower and a transmission customer must be either:
- consistent with the benchmark agreement (clauses 12.27 to 12.34 of the Code)
- negotiated between Transpower and the transmission customer and approved by us (if we’re satisfied certain conditions are met).
Transmission agreements must also be consistent with the grid reliability standards.
If, while a transmission agreement applies, Transpower becomes aware that a connection asset is not expected to continue to meet the grid reliability standards, a process for upgrade of assets or amendment to the agreement must be entered into.
If an individual transmission agreement is not signed, the default benchmark agreement applies.
The benchmark agreement gives a basis for negotiation of individual commercial agreements between Transpower and its customers – it also acts as a default transmission agreement when one hasn’t been established. The benchmark agreement includes:
- technical obligations
- information provision obligations
- payment obligations
- service definitions, service levels, and service measures.
The benchmark agreement must be consistent with the grid reliability standards.
Connection services and interconnection information services are included in the benchmark agreement.