A prudent discount provides discounted transmission charges for one or more customers (the prudent discount recipients) compared to the transmission charges that would otherwise apply under the TPM.
Transpower does not grant prudent discounts proactively. A customer must apply for a prudent discount, and the application must be successful, before the customer will receive the prudent discount.
There are two types of prudent discount under the TPM – an inefficient bypass prudent discount (IBPD) and a stand-alone cost prudent discount (SACPD). More information about the requirements and process for obtaining a prudent discount are available here:
Application fees as at 1 April 2026
| Application fee stage | Fee level (excl. GST) | When is this fee paid? | Is this fee refundable? |
|---|---|---|---|
| Screening fee | $11,414.85 | When the application is submitted. | No (whether or not the application is accepted for detailed assessment or ultimately successful). |
| Detailed assessment fee | $28,537.11 (standard) or $57,074.23 (complex), with the potential for an additional amount if necessary to cover costs. | When the application is accepted for detailed assessment. | Yes, to the extent the detailed assessment fee exceeds Transpower’s actual costs of detailed assessment (whether or not the application is ultimately successful). |
Prudent discount application process
