Transpower’s pricing methodology allocates to its customers the company’s revenue requirement.
The revenue requirement includes the capital, maintenance, operating and overhead costs associated with owning and operating its assets.
Under the regulatory regime that commenced on 1 March 2003 the Electricity Commission is overseeing a process to determine a new pricing methodology under which transmission charges will be calculated and enforced. In the meantime, Transpower is to continue to apply the pricing methodology provided for in the Electricity (Transpower’s Pricing Methodology) Regulations 2004. All customer charges not covered by fixed term contracts have been calculated in accordance with those Regulations.