Transpower customers’ views sought by ComCom

The Commerce Commission is seeking early views on its proposed process, framework and approach for setting national grid operator Transpower’s next price-quality path.

That sets the total amount of money it can collect from its customers and the minimum standards of quality it must deliver, which can have an impact on electric vehicle charging.

Transpower’s next reset covers the five-year period from 2020 to 2025.

The State-Owned Enterprise owns and operates the national high voltage electricity transmission network. As a system operator, it also manages the real time coordination of the electricity market and is regulated under Part 4 of the Commerce Act.

The commission wants Transpower’s customers to help shape its proposed approach to evaluating Transpower’s proposals on expenditure and quality, commission deputy chair Sue Begg says.

“To operate the national grid Transpower collects almost $1 billion a year from its customers, who pass these costs on to New Zealand consumers and businesses,” she says. “It’s important all stakeholders have a chance to be heard and help us shape our approach as we begin this process.”

Begg says the commission particularly wants to hear from “gentailers” (generators-retailers), lines companies, major electricity users and consumer groups on the approach it intends taking in assessing Transpower’s proposals on expenditure and quality.

“We also want their views on our longer-term vision to encourage Transpower to improve on its asset management and customer engagement practices over time.”

For the first time, Transpower has used an independent verifier to scrutinise key components of its proposal.

Transpower’s formal proposal is required to be submitted to the commission in December, accompanied by the independent verifier’s report.

The Electricity Authority estimates that transmission charges make up about 10% of a typical household electricity bill.

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