Amendment to correct simple method adjustment issue

This consultation sought feedback on proposed amendments to the Transmission Pricing Methodology to correct an issue identified in conjunction with Transpower. The issue arose from the calculation of benefit-based charges for benefit-based investments made after 2019 when new customers connect to the grid.

We proposed a technical and non-controversial amendment to correct this issue, by applying a dollar per MWh cap on transmission charges for certain customers that are affected by the issue. We have decided to amend the transmission pricing methodology to correct an issue identified in late 2023.

The amendment will correct an issue with benefit-based charges for new transmission customers under the transmission pricing methodology’s simple method adjustment provision.

The method involves:

• applying the status quo adjustment allocation
• comparing the status quo allocation (in dollars per MWh) to that of the comparator(s) that is electrically closest to the new connection location
• adopting the lower of the status quo or the comparator allocation as the final adjustment.

We received one submission for this consultation.

We decided to implement our proposed correction, where a dollar-per-MWh cap on transmission charges will be applied to charges for those transmission customers affected by the issue.

This amendment is effective from 10 April 2024.

Read our decision paper