TPM: Authority publishes 2019 issues paper
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The Authority has published its 2019 issues paper on the review of the transmission pricing methodology (TPM).
The Authority considers TPM reform is necessary and increasingly urgent. The Authority proposes a benefit-based approach to allocating transmission costs, where those who benefit from specific grid investments would pay for them.
Key features of the proposal are:
- a benefit-based charge to recover the costs of new grid investments and the depreciated costs of seven existing major investments based on their benefits to transmission customers
- a residual charge to recover any remaining transmission costs in a manner that does not distort incentives to invest or use the grid.
These new charges would replace the current regional coincident peak demand (RCPD) charge and the high voltage direct current (HVDC) charge.
The Authority’s proposal is supported by a cost benefit analysis. We estimate a net benefit of about $2.7 billion over the next 30 years from our proposal through reducing electricity costs and increasing its use at peak times, when consumers value it most, and from more efficient investment in transmission and generation.
The issues paper and supporting documentation are on our website. We welcome feedback and have allowed a 10 week consultation period. Consultation closes at 5pm on Tuesday, 1 October 2019. We will then seek cross-submissions until 5pm Wednesday, 30 October 2019.
The Authority will hold regional briefings in Whangarei, Auckland, Tauranga, Wellington, Christchurch and Invercargill in August. Specific details of each briefing will be published in the next couple of weeks.
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Consultation on class exemptions for small scale distributed generators and specified meter owners
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The Electricity Industry Act 2010 (Act) requires all participants to register with the Authority. The Authority considers there are two cases where participant registration is of no benefit to either the Authority or the consumer, yet is costly to administer. We propose recommending class exemptions to cover two categories of participant from having to register:
- persons, other than a generator (as defined in the Act), who generate electricity that is fed into a network, on a small scale
- metering equipment owners (MEOs) who only own metering equipment measuring electricity at the installation control point (ICP) where they consume electricity.
Submissions close at 5pm on Tuesday, 3 September 2019.
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New reports available on EMI
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We’ve released several new reports on our Electricity Market Information (EMI) website recently. These new reports offer insights into historical wholesale prices and the futures market. More information is available below.
Register on EMI to receive notifications of new content releases, construct and share your own dashboards, or contribute to discussions relating to market insights and data.
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Correction: Draft determinations of the causers of the 13 and 14 December 2018 under-frequency events
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We have corrected an error and updated the consultation paper The Authority’s draft determinations of causers: 13 and 14 December 2018 under-frequency events. The MW-lost calculation and associated event charges were linked with the wrong event days.
We will consider submissions on the draft determination before making a final decision. Submissions close on Tuesday, 13 August 2019.
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Reminder: MDAG briefing on trading conduct review 30 July 2019
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The Market Development Advisory Group (MDAG) is holding a briefing on Tuesday, 30 July 2019 to update stakeholders on its Review of spot market trading conduct provisions.
Time: 2.30pm–4.30pm (arrive from 2.15pm)
Date: Tuesday, 30 July 2019
Location: Bell Gully, Level 21 Vero Centre, 48 Shortland Street, Auckland and teleconference available.
Feel free to share this invite with interested colleagues. To register for the event, please email MDAG@ea.govt.nz with the following details:
- Name
- Organisation
- If you will be attending in person or would like to join via teleconference
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