Update on our transmission pricing methodology (TPM) review
The Electricity Authority has released the next steps for its review into transmission pricing guidelines.
The guidelines provide direction for the transmission pricing methodology (TPM) Transpower uses to charge its customers in order to recover costs associated with building and operating the national transmission grid.
The Authority has in the past year reviewed all aspects of its work on transmission pricing and the Board is now in a position to indicate the next steps with the project.
Our next step, which we are already working on, is to prepare a formal proposal for consultation.
We’ve been thinking about a benefit-based approach to charging and so our next proposal is likely to include that approach.
We will now prepare our policy proposal including a new cost-benefit analysis (CBA) and modelling of impacts.
Announcing a date for consultation is too early right now as the time needed to undertake this work still needs to be finalised. While we want to be pragmatic where possible, it’s important we deliver a high quality proposal.
We will provide stakeholders with advance warning of when we will issue our proposal for consultation. We expect to provide another update in December 2018.
Summary of submissions and amended guidelines published: Connection and electrical connection guidelines
The Connection and electrical connection guidelines provide an operational view of the processes for connecting and electrically connecting network supply points (NSPs) and installation control points (ICPs). The requirements for these processes are contained in Parts 10 and 11 of the Electricity Industry Participation Code 2010 (Code). These guidelines also set out best practice for new connections that are ICPs. The guidelines are focused on reconciliation rather than the operation and maintenance of a network.
The summary of submissions and guidelines are available on our website.
Decision paper and amended guidelines published: Guidelines on the calculation and the use of loss factors for reconciliation purposes
Our consultation on amendments to the Guidelines on the calculation and the use of loss factors for reconciliation purposes was intended to assist with identifying networks that had high losses, so the source of high losses could be investigated and, if necessary, dealt with. This could lead to benefits for consumers within that network.
The decision paper and guidelines are available on our website.
Decision paper published: Treatment of prudential offsets in the wholesale market
We have published a decision paper on our Offsetting of prudential requirements for exchange traded, spot, OTC and FTR markets project. We have been considering the potential to integrate clearing and settlement for exchange-traded derivatives and other wholesale market transactions cleared and settled by the clearing manager. After a thorough investigation, we have decided not to pursue further developments in this area at this time.
We reached this decision in large part due to the expected lack of substantial net benefits and consideration of the resources required for a very complex project, which would present a wide range of risks.
The decision paper and submissions are available on our website.
The Electricity Education Portal, launched on 25 June on the Electricity Authority website, is a first for the energy sector in New Zealand. The portal will help new entrants and participants in the electricity sector easily access key information currently contained in our guideline documents.
It will also assist with improving awareness and understanding of how the New Zealand electricity market functions.
Data visualisation software has been applied to our electricity sector guidelines to present information in an easily accessible format. Users who are looking for more in-depth information can follow links to find as much detail as they need.
Whiteboard Energy Limited and the Authority have worked collaboratively to produce this portal, which can be viewed at education.ea.govt.nz
On 21 June 2018 the High Court issued its decision on an appeal and judicial review lodged by City Financial Investment Company (New Zealand) Limited. The appeal and judicial review related to the Authority’s decisions on allegations that Transpower New Zealand Limited had breached certain provisions of the Code. The Code provisions relate to changes made to the operation of the HVDC link.
The High Court dismissed both the appeal and the judicial review.
Market Development Advisory Group (MDAG) Saves and win-backs issues paper
The MDAG is seeking feedback on its Saves and win-backs issues paper. The Saves and win-backs project considers whether to amend the Code in response to the Authority’s August 2017 post-implementation review of the 'saves' Code provisions.
Proposed list of distributed generation eligible to qualify to receive ACOT in the lower North Island
We are seeking views on the proposed list of distributed generation in the lower North Island that would be eligible under the regulated terms in Part 6 of the Code to receive avoided cost of transmission (ACOT) payments from distributors.
