We have released a supplementary consultation paper setting out refinements to our proposal in our May 2016 Transmission Pricing Methodology (TPM) second issues paper.
Submissions on the supplementary consultation paper close on 24 February 2017.
The refinements have arisen from our consideration of submissions made on the second issues paper. The proposed refinements seek to :
remove some charging anomalies to make the treatment of similar customers more even-handed so that the proposal is more durable (eg, in the Ashburton, Buller, Westland and Grey District, and Northland regions)
reduce uncertainty about the impact of the TPM proposal on consumers, including households and major industrials
increase the flexibility for Transpower to design and implement the TPM.
The proposal would reduce uncertainty for consumers by capping increases in transmission charges to distributors and major industrial customers. This cap would mean that distributors and retailers could limit the flow-on impact to households to no more than 3.5% of their total electricity bill.
One of the reasons for introducing the cap is to address fears that some distributors have created by over-stating the likely impact of the proposed changes. Although we’re proposing the 3.5% cap to assure consumers the impacts are moderate, our modelling shows the cap is unlikely to be needed for any distributor.
As the first phase of any changes to the TPM would take effect on 1 April 2020, which is also when it is possible that transmission and distribution charges will fall due to the effect of lower interest rates on the Commerce Commission’s price control regime. The proposed changes are expected to reduce transmission charges for 12 of the 29 electricity network areas across New Zealand.
We have published submissions in response to our consultation on the review of the stress testing regime, called the Spot Price Risk Disclosure requirements, contained in Part 13 of the Electricity Industry Participation Code 2010 (Code). We are assessing whether the regime continues to provide appropriate signals and incentives to retailers and consumers in changing market conditions.
Submissions on review of customer compensation scheme
We have published submissions in response to our consultation on the review of the customer compensation scheme (CCS), contained in Part 9 of the Code. We are assessing whether the CCS continues to provide appropriate signals and incentives to retailers and consumers in changing market conditions.
We have published our work programme report for the period covering 1 July to 31 October 2016. This is a progress report against the work programme that we published in June, and covers our priority 1, 2 and 3 projects.
The work programme and the report to 31 October are available on our website.
Electricity registry: Access changes from 1 March 2017
In line with industry best practices, we are upgrading some security aspects of the registry internet-facing services. The upgrades aim to improve communications security and privacy, by only offering strong encryption protocols and by mitigating attempts to intercept or tamper with client data in transit.
We are planning to make the change to the production version of the registry on 1 March 2017. We strongly recommend that you review the detailed memo published on our website to find out if the changes affect you, and so that your in-house IT or software vendor can make any changes by 1 March 2017.
If you or your in-house IT or software vendor has any questions about the technical details of the changes, please contact the registry engineer at registry.engineer@jadeworld.com.
If you have any questions about the reasons for the changes or the timing, please contact the Market Operations team at marketoperations@ea.govt.nz.
Requirements and processes for audits: New guidelines
We are consulting on guidelines and supporting information for auditors and audited participants, to reflect changes to the Code that will come into force on 1 June 2017.
