Proposed new transmission pricing methodology

Upcoming Open Closed Decision

View submissions Submissions closed 23 December 2021

Consultation

We consulted on a proposed new transmission pricing methodology and received the below submissions and cross-submissions.

We decided to incorporate the new TPM into the Code, effective from 1 April 2023. The new TPM is a benefit-based approach where those who are expected to benefit from transmission investments will pay for them.

The new TPM will remove the problems created by the current transmission peak (RCPD) charge, and the costs of the HVDC cable being imposed on South Island generators only. It supports better use of the grid, and the right transmission and generation investments being made at the right time and in the right places. It will therefore position New Zealand for a lower cost low-emissions transition by ensuring the best use of existing and future infrastructure.

We estimate that the new TPM will deliver New Zealand consumers a net quantified benefit of $1.8 billion over 28 years.

Find out more in our decision paper.