Customer contract information

Transpower has standard agreements for different types of customer work

We have standard clauses within our most common agreements. Those clauses are not changed unless the specific circumstances of a project or connection require a different approach.

Non-Disclosure Agreement (NDA)

Transpower will enter an NDA with customers for new confidential projects if requested.  We use our standard NDA, which is available on request.

Services Agreement (SA)

We use our services agreement and associated statements of work to recover the cost of studies requested by our customers. A services agreement is executed for each project with associated statements of work (SOWs) agreed for each project stage/package of work. For example, a service agreement and statements of work are typically used for concept assessments where a fee is charged and for any subsequent investigations into connection solutions. 

Performance of Works Agreement (POW)

A Performance of Works agreement is used where Transpower needs to make changes to existing Transpower assets for a customer project, but no new assets are required.  An example of when this might be used is where configuration changes are required to Transpower protection systems due to a change within a distribution network. Payment for performance of works is normally milestone payments or lump sum on completion.

Transpower Works Agreement (TWA)

A Transpower Works Agreement is used where Transpower is requested to build and commission new grid-connected assets for a customer project, for example, a new connection to the grid or an upgrade of an existing connection to the grid. The costs to be paid under a TWA are the actual delivery costs, plus interest during construction and (where applicable) financing costs.

Transpower Development Agreement (TDA)

A Transpower Development Agreement is used for customer-led connections where Transpower sets the requirements for the project and monitors quality but the connecting customer delivers most of the work to build and commission new grid-connected assets for a customer project, Transpower may still deliver some sub components e.g. communications solutions. The costs to be paid under a TDA are the actual Transpower delivery costs, plus interest during construction.  A Sale and Purchase Agreement will normally accompany a TDA to Transfer ownership of new core grid assets to Transpower post commissioning.

Default Transmission Agreement (DTA)

All grid-connected customers are required to have a transmission agreement with Transpower. The transmission agreement covers (amongst other things) connection conditions, ongoing operations post commissioning and payment of transmission charges. The ‘benchmark agreement’ incorporated by reference into the Electricity Industry Participation Code 2010 (Code) is used as Transpower’s default transmission agreement. For new customers we recommend you familiarise yourself with the relevant clauses in Part 12 and with the ‘benchmark agreement’.

A high level process including timings for drafting a new DTA with a new customer or updating an existing DTA can be found here - DTA process

The 'benchmark agreement' can be found on the Electricity Authority's website using the following link - Benchmark Agreement

An update version of the DTA was approved by the Electricity Authority incorporating changes to align with updates to the Transmission Pricing Methodology (TPM).  An August 2023 template can be found here - DTA.

  A summary of Transmission Agreements currently in force can be found here - Summary of Transmission Agreements

A summary of any Transmission Agreements currently in force with terms modified from those in the Benchmark Agreement can be found here - Modified Clauses to Transmission Agreements

Data Transmission Agreement (dTA)

Real time data exchange is critical to the operation of interconnected utility systems. Transpower has implemented an industry standard Inter-Control Centre Communication Protocol (ICCP) service which is to be used for all data exchanges with customers. A data transmission agreement sets the terms of use for ICCP communication and is required for all generation customers and some other customers, where there is a need to exchange SCADA or other data.

Other contracts for special situations

Sale and Purchase Agreement

From time to time Transpower may look to divest surplus or non-core assets. Our standard Sale and Purchase Agreement is used for the assets not connected to the Grid.  A modified version of our standard Sale and Purchase agreement known as an Asset Transfer Agreement is used for transferring ownership of assets still connected to the Grid.

Recovery of Costs Agreement

A Recovery of Costs agreement is used where Transpower needs to recover costs from a Transpower customer where there is no provision of services, new assets or performance of works.  An example of where a recovery of costs agreement might be used is where a customer requests the replacement and upgrade of existing assets before they are fully depreciated but there is no future potential use for those assets, and they will be scrapped.  In this situation Transpower will look to recover the difference between the residual book value and the scrap value of the assets.

Another example is a simple protection setting change, where Transpower is sending a Service Provider on site to administer the change. Transpower then passes this cost on to the Customer via a Recovery of Costs agreement.