Consultation period extended for TPM and DGPP consultation papers
We have extended the consultation period for the transmission pricing methodology (TPM) second issues paper and the Review of distributed generation pricing principles (DGPP), from eight weeks to 10 weeks.
The consultation period will start when the papers are published on Tuesday, 17 May 2016, and end at 5pm on Tuesday, 26 July 2016.
We have extended the consultation period so interested parties have more time to consider the proposal and develop submissions. We have liaised with the Commerce Commission regarding the time frame for its Input Methodologies (IM) Review consultation and we are aware this will be a busy period for electricity sector stakeholders.
Reminder about stakeholder event for the release of the TPM and DGPP consultation papers
As previously advised, we will hold an initial stakeholder briefing from 10am to 11.30am on Tuesday, 17 May 2016 at the InterContinental Hotel, 2 Grey Street, Wellington.
We intend to livestream the briefing and then make this available in video format via our website.
We will also arrange one-on-one meetings with parties who request them, and will convene more detailed workshops. The workshops will be held in Auckland, Wellington, Christchurch and Invercargill in late May or early June. We will notify the details of the workshops in a future issue of Market Brief.
Revised timeline for review of the Customer Compensation Scheme (CCS) and stress testing regimes
We are reviewing the CCS and the stress testing regimes to ensure that they continue to promote the reliability and efficiency limbs of our statutory objective, in the face of changing market conditions.
We have decided to delay the release of consultation papers on the CCS and stress testing regimes which were planned for release in mid-June 2016. We are now targeting late August 2016.
We have made this change to reduce the pressure on stakeholders who will be considering the TPM and DGPP consultation papers.
We received 54 submissions on our consultation paper about the implications of evolving technology for pricing of distribution services. The submissions raised three broad sets of issues:
what distribution pricing could look like in the future, which includes developing new approaches to pricing, practical price design, and the harmonisation of pricing approaches and terminology
how to implement change, which includes transition to new price structures, managing the effect on consumers, who communicates the changes, retailer pass-through of price structures and regulatory barriers
making sure distributors have sufficient incentives to make changes, which includes when distributors will make changes, whether the existing voluntary distribution pricing principles are fit-for-purpose, and the need for regulatory intervention.
The Authority’s strong preference is to facilitate an industry-led approach to developing and adopting efficient distribution pricing structures.
We will therefore hold a conference in August 2016 for stakeholders to elaborate on the views expressed in submissions. Based on the divergence of views in submissions, the conference topics will most likely cover:
incentives—views on the strength of incentives on distributors to adopt efficient prices and the nature of any regulatory response
pass-through—views on the pass-through of distribution price structures
transition, communication and managing consumer impacts—views on managing the potential impacts of changing price structures.
We will also develop guidance on how the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004 apply.
More information about the distribution pricing review project is available on our website.
Decision paper about the addition of register content codes to the registry
On 19 February 2016, we asked for comment on a proposal to add six new register content codes. We have approved five register content codes for participants to use. We have now published a decisions paper which is available on our website.
Submissions on proposal to alter the way instantaneous reserve availability costs are allocated
We have published submissions in response to our consultation paper that proposes to alter the way instantaneous reserve availability costs are allocated.
We have decided to discontinue the following investigations:
investigation of breaches of clause 2(2)(b) of Technical Code A of Schedule 8.3 of the Electricity Industry Participation Code 2010 (Code) by Transpower New Zealand Limited as the grid owner on 25 May 2015
investigation of a self-reported breach of clause 4(4)(a)(ii) of Technical Code A of Schedule 8.3 of the Code by Transpower New Zealand Limited as the grid owner between 30 June 2014 and 6 February 2015.
Our decisions and reasons are available on our website.
We have published a consultation paper outlining six operational issues with the current scarcity pricing regime. The paper includes proposed Code amendments to resolve these issues.
