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.

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.

Benchmark agreement

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.

  • What's in a transmission agreement

    Published: 02/12/2013 12:00am

    Transmission agreements contain interconnection rules and incorporate the connection code and outage protocol. Read More

  • Investment contracts

    Published: 17/12/2013 12:00am

    Clauses 12.70 and 12.71 of the Code provide for investment contracts to be agreed between transmission customers and Transpower, and establish a process to manage any potential implications for grid reliability standards. Read More