We consulted on a proposal to ensure that none of the three agreements that discount existing transmission charges will be an exception to the general rule that Transpower must charge for transmission services in accordance with the transmission pricing methodology (TPM).
Transpower is party to two existing prudent discount agreements (PDAs) and a notional embedding contract (NEC), which provide various parties with discounts on their transmission charges.
The NEC and existing PDAs were agreed under transmission pricing arrangements that are or will soon be obsolete – as the new TPM commences in April 2023. The Code provides that Transpower must charge for transmission services in accordance with the TPM. However, the NEC is currently an exception to this rule.
We consider the NEC should no longer be an exception to this rule, acknowledging that a materially different pricing structure will be in place from 1 April 2023.
See our consultation paper and submissions received below.