On balance, the Electricity Commission decided that it wasn’t justified at that point in time because:

  • Transpower has the primary responsibility for ensuring consistency and demonstrating this fact to the Electricity Commission
  • there are options available to purchasers if they are concerned about inconsistency
  • the Electricity Commission considered that a comprehensive audit is not achievable within that current timeframe
  • Transpower had already indicated to the Electricity Commission how it proposed to demonstrate consistency with the transmission pricing methodology.

The Electricity Commission wrote to Transpower informing it of the reasons for not undertaking an audit and seeking Transpower's provision of a directors' certificate to confirm that the calculated prices were consistent with the transmission pricing methodology.

The Electricity Commission was entitled to commence an audit at any time and was interested in purchasers' responses to Transpower's published prices.

Transpower responded to the Electricity Commission's letter noting that while it would endeavour to publish transmission prices by late October 2007/early November 2007 – it was more likely that it would publish prices in either late November 2007 or early December 2007.

Transpower provided a directors' certification confirming that the transmission prices were consistent with the transmission pricing methodology, and the internal audit processes for ensuring consistency and calculation, were robust and in accordance with best practice.

The Electricity Commission responded to Transpower confirming the approach. 

Transpower provided a directors’ statement and a copy of the internal audit report.