Important submission dates

The EA initially proposed distributors use the mid-point estimate of the weighted average cost of capital as part of this requirement.However, following feedback on the Code drafting, one submitter recommended the 65th percentile would be more appropriate to use as an estimate, as it aligns with the Commerce Commission’s use of the weighted average cost of capital (WACC) when setting regulatory allowances. The EA consider this proposed change would improve consistency between the two regulatory regimes and help keep total system costs as low as possible. They welcome your views on the proposed amendment to the WACC percentile.

The Electricity Authority Te Mana Hiko is seeking feedback on two proposed Code amendments to improve the efficiency of prudential security arrangements for retailers, without increasing risk to the wider market. They propose to: reduce the post default exit period by four days for retailers with 1,000 ICPs or fewer and, reallocate residual funds to purchasers in proportion to their percentage of total purchase volume. These adjustments are intended to help lower barriers to growth and support a more diverse and vibrant retail electricity market. This should help deliver providing consumers with greater choice and value for consumers.

The EA are seeking feedback on proposals aimed at addressing six common quality issues in the Code. The six proposed amendments will update Code terminology, clarify requirements, and remove inconsistencies in Parts 1, 7 and 8 of the Code. The proposals are expected to help maintain the security and resilience of the power system and keep downward pressure on consumers’ power bills by reinforcing the ability of the System Operator to take necessary actions, promoting the efficient operation of the electricity industry and increasing competition by promoting competitive neutrality.

This consultation is the next stage of work to review and update the network pricing rules for solar and other forms of distributed generation and storage – big and small. The proposals in this consultation paper aim to support growth in generation connecting to distribution networks and keeping costs as low as possible for everyone in the long run.