Level playing field for emerging technologies under the TPM

We sought 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. 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.

Thank you to everyone who made a submission. We are currently considering them carefully to inform our final decision paper.

Note, on 2 September 2024 we corrected an error in the output summary of the illustration of residual charge and updated Table 2 in the consultation paper to reflect the updated modelling.