Pricing and cost allocation

Spot market settlement on real-time pricing

We have decided to implement our dispatch-based, look-ahead design for real-time pricing to make wholesale spot prices more certain, more accurate, and more efficient.

Latest Activity: 28 Mar 2023 Final phase of Real Time Pricing coming soon

Settlement Residual Allocation Methodology (SRAM)

The method used to allocate the settlement residue amongst transmission customers.

Latest Activity: 14 Feb 2023 Development: next steps on SRAM implementation

Distribution Pricing

The Authority is supporting distribution networks to speed up pricing reform to realise consumer benefits and to facilitate an efficient transition to a low emissions future.

Latest Activity: 21 Dec 2022 Updates to the distribution pricing scorecards process for 2023

Avoided Cost of Transmission payments

The Authority is proposing to amend the Code to make it clear that payments by distributors to eligible distributed generation for avoided cost of transmission (ACOT) are no longer required

Latest Activity: 20 Dec 2022 Decision on Code change for Avoided Cost of Transmission payments

MDAG 100% renewable power supply

Latest Activity: 06 Dec 2022 – 06 Mar 2023 Consultation on the Market Development Advisory Group's Options Paper - Price Discovery in a Renewables-Based Electricity System

Transmission Pricing Methodology

The Electricity Authority's transmission pricing methodology (TPM) for the allocation methodology for transmission costs.

Latest Activity: 22 Nov 2022 Decision on Code amendments to correct issues identified in the new TPM.

Review of spot market trading conduct provisions

The Authority and the Market Development Advisory Group have reviewed the trading conduct provisions in light of events that have tested these provisions.

Latest Activity: 1 Jun 2021 Trading conduct review: decision published

Making price forecasts more accurate

We have published a decision paper which sets out our decision to improve conforming load forecasts under existing incentive arrangements.

Latest Activity: 10 Aug 2020 System operator sensitivity schedules proof of concept

ACOT Code change implementation

The Electricity Authority will decide which existing distributed generation will receive avoided cost of transmission (ACOT) payments under the regulated terms in Schedule 6.4 of the Electricity Industry Participation Code 2010 (Code) based on the advice

Latest Activity: 1 Jul 2019 Two additions to the list of distributed generation

Removing constrained-on payments for generation ramping down

Latest Activity: 25 Jun 2019 Removing constrained on payments for ramp-rate constrained generation

Changes to constrained-on provisions of the Code

Latest Activity: 7 Dec 2018 Constrained-on provisions of the Code

Review of instantaneous reserve event charge and cost allocation

The Authority is reviewing the instantaneous reserve event charge and allocation of availability costs. It has asked the WAG to consider the extent to which the existing arrangements meet the statutory objective and make recommendations to the Authority.

Latest Activity: 11 Oct – 28 Nov 2016 WAG discussion paper: Instantaneous reserve event charge and cost allocation

Wind Generation Offers

The Wholesale Advisory Group has undertaken an investigation into the wind offer regime and found that there are likely to be net benefits in applying a targeted solution to address two problems.

Latest Activity: Sep 2015 Wind generators to offer plant in a single band

Review of Part 6 - Distributed generation pricing principles

The Electricity Authority is reviewing the distributed generation pricing principles (DGPP) in Schedule 6.4 of the Electricity Industry Participation Code 2010 (Code).

Latest Activity: Jul 2015 Background

Transpower TPM operational review

As a result of Transpower’s operational review it has recommended that the Electricity Authority consider amending the Transmission pricing methodology (TPM).

Latest Activity: Feb 2015 Operational review proposal documents

Research Project: Effects of low fixed charges

The Authority requested the Retail Advisory Group (RAG) investigate the competition, reliability and efficiency effects of the Low Fixed Charge (LFC) Regulations, focusing on whether the Regulations inhibit efficient distribution and retail pricing and th

Latest Activity: Nov 2014 Low fixed charge tariff option

Exemption application - classification of NAaN assets under the TPM

Transpower and Vector have both requested an exemption from obligations in clauses 8 to 26 of Schedule 12.4

Latest Activity: 17 Sep – 01 Oct 2013 Draft decision on exemption application classification of NAaN assets under the TPM

Bid and offer provisions of the Code

This project has been completed. The Authority is reviewing the provisions of the Code related to the revision of bids, offers and reserve offers. This includes a review of gate closure.

Latest Activity: May 2012 Background on bid and offer revision