Electricity Transmission

Transpower is the sole owner and operator of the New Zealand national electricity transmission grid.

Transpower is regulated under Part 4 of the Commerce Act 1986 by way of individual price-quality regulation. This took effect on 1 April 2011. The individual price-quality path governs Transpower's revenues for each pricing year, with the paths being reset either every four or five years. Transpower input methodologies support the individual price-quality regulation.

Under subpart 9 of the Part 4 of the Commerce Act, Transpower is also subject to information disclosure regulation.

Current documents that apply to Transpower and links to other Transpower pages

Transpower web pages	Determinations and decisions	Date released
Price-quality regulation that applies to Transpower	Transpower Individual Price-Quality Path Determination 2010 Consolidated October 2012 (pdf)	October 2012
	Individual Price-Quality Path Transpower Reasons Paper December 2010 (pdf)	December 2010
Transpower input methodologies	NZCC 17 Transpower IM determination 29 June 2012 (pdf)	June 2012
	Transpower Input Methodologies Reasons Paper December 2010 (pdf)	December 2010
	Transpower Capital Expenditure Input Methodologies Determination 2012 (pdf)	January 2012
	Capex Input methodology reasons paper (pdf)	January 2012
Cost of capital	Determination of the cost of capital for services regulated under part 4 of the Commerce Act 1986 3 March 2011 (pdf)	March 2011
	Transpower IM Leverage Reasons Paper 29 June 2012	June 2012
Price-Path Compliance	Maximum Allowable Revenue (MAR) 2011/12	December 2010
	Maximum Allowable Revenue (MAR) 2012/13 to 2014/15	1 November 2011
	Annual compliance monitoring statement 2011/12	Future
	Updates to the 2013/14 and 2014/15 forecast MARs (October 2012)	October 2012
Opex capex review 2012/2013 to 2014/15	Final decisions opex capex and quality allowances for Transpower (pdf)	12 August 2012
Transpower information disclosure	Process Update Information Disclosure Requirements for Transpower (pdf)	2 May 2012
Major capital proposal	Otahuhu Substation Diversity project MCA Amendment decision	12 April 2013

Previous decisions

Administrative settlement

Decision on instantaneous reserves

Review of non part F expenditure proposal under the administrative settlement

Transpower Information Disclosure

The Commission is currently developing information disclosure requirements for Transpower that will apply from 2012/13 disclosure year.

Transpower - Price-Path Compliance

Compliance with the price-quality path is achieved if the forecast revenues Transpower uses to set charges for a pricing year do not exceed the forecast maximum allowance revenue (MAR).

Transpower Major Capital Proposal

Transpower uses a major capital proposal to seek regulatory approval for a major capital investment in the national grid or the high-voltage electricity transmission network.

Price-Quality Regulation that Applies to Transpower

The requirement to develop and apply a new type of regulation to Transpower was one of the key changes to the Commission's regulatory responsibilities under the Commerce Amendment Act 2008. Individual price-quality regulation was implemented on 1 April 2011.

Transpower - Administrative Settlement

The Commission conducted a post breach inquiry and, after consultation, published in 2008 its decision accept a settlement from Transpower rather than place its transmission services under regulatory control. The settlement govern Transpower's revenues for each financial year until 30 June 2011.