Sapere LRMC pricing paper: February 2018

In early 2017, while expecting the Electricity Authority would approve a new Transmission Pricing Methodology Guideline in April 2017, we commenced planning and thinking in preparation for development of a corresponding new TPM. We expected the new Guideline would allow for peak pricing signals in the form of long-run marginal cost (LRMC) charging and we wanted to better understand how LRM pricing might work in practice.  

We commissioned Dr Stephen Batstone of Sapere Research Group to research and consider practical design aspects of an LRMC charge for New Zealand’s TPM. The literature search analysis has been peer reviewed by Dr E Grant Read (Consultant and Adjunct Professor, University of Canterbury). 

A copy of the report is available to download below. We have not taken this work any further.

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Sapere LRMC Final Feb 2018.pdf [ pdf 3.73 MB ]