Transpower and the Electricity Authority have completed negotiations for an updated electricity system operator service provider contract. The contract, worth $216 million over the next five years, will come into effect on 1 July 2016.
Transpower, as the system operator, is responsible for managing the real time operation of the New Zealand electricity system. The system operator’s focus has been aligned with the Electricity Authority’s objective to promote competition, reliability and efficiency for the long-term benefit
The new contract includes increased transparency over service and performance, greater commercial discipline on costs and project management, and requirements for more engagement with stakeholders.
Key changes in the new system operator service provider contract include:
- A fixed fee for the majority of services has been agreed. Any increases above the fixed fee
- Any capital expenditure to improve or enhance the services must be consulted on and approved by the Electricity Authority.
- Performance and delivery incentives will be agreed annually; and
- New reporting requirements such as performance-related audits, final business cases for capital projects will enable clearer demonstration that the services are being delivered effectively. High value capital projects will be subject to a benefit realisation review following completion.
For further information, please contact:
Rebecca Wilson, Corporate Communications Manager, 04 590 6695; 021 578 608