Transmission Pricing Review

The Electricity Authority (EA) in July 2019 consulted on its latest transmission pricing review.

The 2019 consultation follows that undertaken in 2016 where the Association submitted on the distributed generation transmission pricing component of the review.

The Association has again submitted, and while agreeing with a number of key issues raised by the EA,  has raised similar issues to those identified in 2016.

The two key outcomes the NZWEA seeks are ensuring a form of peak pricing signal is retained and placing South Island generation on a level playing field with the North Island.

The key aspects of the Association’s submission include:

  • The proposed pricing methodology is potentially inconsistent with the Government’s climate change agenda.
  • The complexity of the proposal and level of change creates excessive risk.
  • An effective pricing signal is required.
  • The HVDC has national benefit.
  • Using the gross demand measure for the residual charge does not recognise the benefits of distributed generation.
  • There are inconsistencies between the EA’s approach to transmission and distribution pricing methodologies.
  • The benefits-based pricing of new investment is supported in principle.
  • A simplified development process is required.

The Association’s submissions can be viewed below: