TPM proposal to the Electricity Authority

Developing a proposed new TPM
 

In mid-2020 the Electricity Authority published new TPM Guidelines and tasked Transpower with developing a proposed new TPM. We delivered a proposed new TPM to the Authority on 30 June 2021, in accordance with the Guidelines and the Electricity Industry Participation Code 2010. The Authority made some changes to our proposal and consulted on it. On 2 December, we submitted our response to the Authority's consultation paper. You can read it on our Regulatory Submissions page. The Authority made further changes after reviewing submissions and has now approved the new TPM.

Thank you to our customers and interested stakeholders who contributed to the development of the proposed new TPM that we submitted to the Authority. Your feedback and insights were invaluable as we worked to create a workable TPM.

You can read about our work to implement a new TPM here.


Indicative pricing updates

See our TPM indicative prices page for the most up-to-date information.

To help customers understand and prepare for pricing changes under the new Transmission Pricing Methodology (TPM), we published an indicative pricing update in April 2022.


NOTE: This has now been updated to correct an error in our transitional cap calculation and the covered costs inputs for HVDC Schedule A BBI. See the most up-to-date indicative pricing information here. We will re-publish this information whenever more accurate information becomes available and notify stakeholders via our TPM notification. You can subscribe to receive these notifications here.


It illustrates what transmission charges would have been for the pricing year commencing 1 April 2022, had the new TPM been applied to that pricing year. It also projects out to the 2034/35 pricing year to indicate how indicative prices may evolve over time.

These indicative prices have been produced from the model we developed and updated during the TPM development phase. The model comprises a number of process steps, databases and Excel spreadsheets.

It’s important to note that the prices are illustrative only. The new TPM will only be applied to prices from 1 April 2023 onwards.

The indicative pricing is not a formal calculation or notification of transmission charges. We recommend that anyone making decisions based on the indicative prices should consult the new TPM, any relevant information they have access to and seek independent expert advice.

V 2.0 (released 27 April 2022)

  1. Indicative Prices for 2022/23 [ pdf 1.14 MB ]
  2. Indicative Pricing Model  [ xlsx 1.62 MB ]
  3. Covered Cost Model  [ xlsx 579.08 KB ]
  4. Simple BBI customer and regional allocations model [ xlsx 2.94 MB ]
  5. Indicative Pricing Stakeholder Information  [ xlsx 574.73 KB ]


Prior indicative pricing and other updates

Prior to the Authority's consultation and final decision we updated several of our proposal documents as requested by the Authority:

Supporting Information for APP B Covered Costs Model [ xlsx 557.18 KB ]

Supporting Information for APP B Indicative Pricing Model [ xlsx 1.53 MB ]

Supporting Information for APP B Indicative Pricing Stakeholder Information [ xlsx 562.81 KB ]

Supporting Information for APP B Simple BBI customer and regional allocations [ xlsx 433.66 KB ]

Appendix B of our TPM Proposal Reasons Paper [ pdf 1.25 MB ]


Our 30 June 2021 TPM proposal to the Electricity Authority

  1. Letter from Transpower to the Authority TPM Full Proposal
  2. Proposed TPM (legal drafting)
  3. Proposed TPM 30 June 2021 compared TPM Preliminary Drafting 3 May 2021 [ docx 3.1 MB ]
  4. TPM Proposal Reasons Paper 30 June 2021
  5. Supporting Information for APP B Covered Costs Model [ xlsx 556.79 KB ]
  6. Supporting Information for APP B Indicative Pricing Model [ xlsx 1.46 MB ]
  7. Supporting Information for APP B Indicative Pricing Stakeholder Information [ xlsx 183.84 KB ]
  8. Supporting Information for APP B Simple BBI customer and regional allocations [ xlsx 362.74 KB ]
  9. Supporting Information for APP E and D CUWLP Data Processing Guide
  10. Supporting Information for APP E and D CUWLP allocation processing [ xlsx 324.14 KB ]
  11. Supporting Information for APP E and D WUNIVM individual customer allocations and indicative prices [ xlsx 41.52 KB ]
  12. Supporting Information for APP F TPM Adjustments and PDP Worked Example Spreadsheet [ xlsx 416.7 KB ]
  13. Assurance Chapman Tripp
  14. Assurance Deloitte
  15. Assurance Ernst Young
  16. Assurance KPMG

 

Part one refer back proposal - non-Benefit Based Charge (BBC) aspects

We received a letter from the Authority (28 July), where it referred non-BBC aspects of the TPM proposal back to us for further consideration. On 25 August we resubmitted on these:

  1. Refer back letter from Electricity Authority to Transpower (part one - non-BBC)
  2. Transpower letter to the Electricity Authority re non-BBC TPM proposal referral [ pdf 173.06 KB ]
  3. Part 1 resubmitted proposed TPM (clean) [ pdf 2.54 MB ]
  4. Part 1 resubmitted proposed TPM (changes tracked with comments) [ pdf 2.32 MB ]
  5. TPM proposal refer back part 1 response [ pdf 1.13 MB ]
  6. TPM proposal refer back part 1 assurance letter [ pdf 150.83 KB ]

 

Part two refer back proposal - Benefit Based Charge (BBC) aspects

We received a letter from the Authority (18 August), where it referred BBC aspects of the TPM proposal back to us for further consideration. On 15 September we resubmitted on these:

  1. Refer back letter from Electricity Authority to Transpower (part two - BBC) [ pdf 148.67 KB ] 
  2. Transpower letter to the Electricity Authority re BBC TPM proposal referral [ pdf 186.82 KB ]
  3. Part 2 resubmitted proposed TPM (clean) [ pdf 2.6 MB ]
  4. Part 2 resubmitted proposed TPM (changes tracked with comments) [ pdf 2.42 MB ]
  5. TPM proposal refer back part 2 response [ pdf 1020.39 KB ]
  6. TPM proposal refer back part 2 assurance letter Chapman Tripp [ pdf 152.21 KB ]
  7. TPM proposal refer back part 2 assurance letter Ernst Young [ pdf 115.69 KB ]
  8. TPM proposal refer back part 2 assurance letter KPMG [ pdf 156.48 KB ]
  9. Supporting Information for APP A to this response - clause 52 and 53 methods [ xlsx 1.52 MB ]
  10. Supporting information for APP D - Addendum to CUWLP case study [ pdf 484.42 KB ]
  11. Supporting information for APP D - EY assurance memo [ pdf 70.79 KB ]
  12. Supporting information for APP D - Allocation processing outputs with addendum [ xlsx 411.45 KB ]
  13. Supporting information for APP F - Adjustments and Prudent Discount Policy [ pdf 1.49 MB ]
  14. Supporting information for APP F - Adjustments and Prudent Discount Policy worked examples [ xlsx 420.68 KB ]