Operational Review 2

Latest update: January 2018

In June 2017, we released an Invitation to Comment on a possible Operational Review 2 of the Transmission Pricing Methodology (TPM). This was following the Electricity Authority announcement that it needed to prepare a new cost-benefit analysis before any decisions could be made about its review into the TPM Guidelines.

We believe there is a place for operational reviews - the 2014/15 operational review resulted in significant benefits to end consumers. However, following the feedback received on our Invitation to Comment, together with the subsequent narrowing of scope of what Operational Review 2 could achieve, the Transpower Board has decided not to proceed at this stage. We don’t believe that the benefits would outweigh the cost of undertaking such a review.

We are appreciative of the feedback you provided in response to our Invitation to Comment. The feedback was positive and it was good to hear industry thoughts. We will continue to assess the environment as developments in this space continue and will be in touch should there be a time when it would be appropriate to initiate an operational review.

Any queries regarding Operational Review 2 can be directed to TPMsubmissions@transpower.co.nz.

 

Background:

Between 19 June 2017 – 10 Jul 2017 we invited comment on a proposed Operational Review 2. More details on this exercise, and the feedback collected, is below. 

Under the Electricity Industry Participation Code, we can undertake operational reviews of the Transmission Pricing Methodology (TPM) and propose changes to the Electricity Authority.

The Electricity Authority announced on 20 Jun 2017 that, to enable its new Board members to get up to speed and fully understand the complexities of the TPM review, it has delayed procurement of the new cost-benefit analysis that will support a final decision on whether to issue a new Transmission Pricing Methodology Guidelines.  Given this delay, we believe that there is an opportunity for us to undertake an operational review (Operational Review 2) that will achieve real benefits to the industry and electricity consumers.

Although separate to the wider Electricity Authority’s TPM review, Operational Review 2 provides a way to bring forward implementation and benefits of some technical elements of the Electricity Authority’s wider proposals, and tidy up the current TPM to make it easier to understand.

The Electricity Authority sees Operational Review 2 as complementary to their wider proposal and is supportive of us undertaking this process. Any proposals made following consultation will be subject to their approval.

We asked for feedback on the below consultation paper as part of undertaking an Operational Review 2. We requested feedback to help us determine:

  1. whether Operational Review 2 would be worthwhile, and
  2. if so, what its scope should be.

 

Consultation paper

TP Transmission Pricing Methodology - Invitation to Comment – 16 June17.pdf [ pdf 2.25 MB ]

 

Submissions

Download a zip file of all submissions received.

All submissions [ zip 9.16 MB ]

Click on a name below to download an individual submission.

Alpine Energy [ pdf 398.47 KB ]
Centralines [ pdf 41.86 KB ]
Counties Power [ pdf 262.12 KB ]
EA Networks [ pdf 414.65 KB ]
Eastland Networks [ pdf 281.74 KB ]
Electra Generation [ pdf 61.02 KB ]
EMA+ [ pdf 250.59 KB ]
ENA [ pdf 261.76 KB ]
Federated Farmers – Auckland/Northland [ pdf 224.62 KB ]
Fonterra [ pdf 335.96 KB ]
GBC Winstone [ pdf 880.21 KB ]
Genesis [ pdf 203.56 KB ]
Horizon Energy Group [ pdf 180.41 KB ]
IEGA [ pdf 69.77 KB ]
KiwiRail [ pdf 70.55 KB ]
Mercury [ pdf 339.23 KB ]
Meridian [ pdf 235.5 KB ]
MEUG [ pdf 91.33 KB ]
Network Waitaki [ pdf 259.48 KB ]
Norske Skog Tasman [ pdf 506.91 KB ]
Northpower [ pdf 248.04 KB ]
Nova [ pdf 201.13 KB ]
NZ Steel [ pdf 14.7 KB ]
Oji Fibre [ pdf 117.44 KB ]
Orion [ pdf 376.94 KB ]
Pacific Aluminium [ pdf 84.63 KB ]
Pioneer [ pdf 84.65 KB ]
Powerco [ pdf 188.97 KB ]
Powernet [ pdf 59 KB ]
Simply Group [ pdf 559.59 KB ]
The Lines Company [ pdf 480.46 KB ]
Top Energy [ pdf 568.15 KB ]
Trustpower [ pdf 1009.35 KB ]
Unison [ pdf 287.94 KB ]
WEL Networks [ pdf 219.33 KB ]
Westpower [ pdf 388.43 KB ]

 

Late Submissions: Two submissions were received late (11 July 2017), due to errors. Both parties have confirmed they have not read submissions by other parties prior to Transpower receiving the late submissions. We have accepted these submissions for consideration.

Contact [ pdf 245.41 KB ]
ETNZ [ pdf 97.8 KB ] 

 

 

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