Avoided cost of transmission payments

Code change to remove avoided cost of transmission payments

Upcoming Open Closed Decision
View submissions Submissions closed 25 November 2022
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Consultation

From September to November 2022, we consulted on amending the Code to make it clear that payments by distributors to eligible distributed generation for avoided cost of transmission (ACOT) are no longer required.

Our consultation paper presented two options:

  1. Removing all provisions for ACOT payments from April 2023 (our preferred option); or
  2. Phasing out ACOT payments over the next two pricing years.

After our consultation, we put further questions to Transpower, as the grid owner, to better understand their view on specific issues and selected submissions on grid reliability. Following Transpower’s response, we then invited further feedback.

Thank you to everyone who lent their inputs and experience to this work. You can see the results of this consultation in the ACOT decision paper and ACOT Code amendment instrument.

Consultation paper

ACOT consultation paper

ACOT consultation paper

Proposal to remove provisions for ACOT payments from distributed generation pricing principles.
Household bills impact of ACOT decision

Household bills impact of ACOT decision

Transpower's response on grid-reliability

Following receipt of cross-submissions, we put some questions to Transpower, as grid owner, seeking to better understand their view on specific aspects of the consultation paper and select submissions regarding grid reliability.

Transpower responded on 10 November 2022. We then invited stakeholder feedback on Transpower's response to ensure we had all relevant viewpoints. To follow are the responses received.

Download all as a zip

Cross-submissions

We invited cross-submissions on the individual submissions received on the ACOT consultation paper.

Download all as a zip

Submissions

Download all submissions (.zip)