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CEG Asia Pacific Conducts Economic Review of Electricity Authority's Proposed Changes to the Transmission Pricing Methodology

Feb 8, 2013

The Electricity Authority (EA) in New Zealand has proposed material changes to the Transmission Pricing Methodology (TPM). Most significantly, it plans to merge the high voltage direct current (HVDC) link and interconnection charges and to recover a proportion of the required revenue from parties deemed to be ‘private beneficiaries’ of certain investments. It proposes to use this ‘beneficiaries pays’ approach to set prices for new assets and for investments made since May 2004 exceeding $2 million. This already encompasses a significant proportion of the grid and, in time, will capture all of it.

CEG Asia Pacific was commissioned by Transpower New Zealand to conduct the economic review.  CEG’s report is available here.