New Zealand Gazette – 1995 – No. 118

Page 3709

✨ Electricity Charges Methodology

20 OCTOBER NEW ZEALAND GAZETTE

3709

SUBTRANSMISSION CHARGES

4.1 THE POWER COMPANY

4.1.1 The subtransmission network was divided up into its constituent components including every line and every zone substation. These components were categorised, ie 66,000 or 33,000V, indoor and outdoor, size, number of transformers, circuit breakers, length of line etc.

4.1.2 All the values were based on the replacement value costs and these values were then split into two components:

(a) The basic assets required to supply consumers, and

(b) The incremental value of the extra capacity required to provide a back-up supply to other consumers.

The calculation sheets are shown in Tables 7 and 8.

4.1.3 These values were then reduced using the overall replacement cost : asset value for the network and then their share of the use charge calculated as shown in Table 6.

4.1.4 Each Network component was then selected and the groups of consumers who benefited from each individual component were identified and divided into the class of benefit, ie whether they benefit as the normal method of supply or whether they benefit from it as a backup supply. The calculation sheets for this allocation are shown in Table 9.

4.1.5 The supply part of the charges was allocated using the same parameters as the transmission charges, but slightly different ratios. These are shown in Table 6.

4.1.6 The backup charges were allocated to consumers on a total kWh basis, ie it was considered that a backup supply was important 24 hours a day and more important to higher users. A ratio of 4:1 was used to differentiate the value between commercial and residential consumers.

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VUW Te Waharoa — NZ Gazette 1995, No 118

NZLII — NZ Gazette 1995, No 118

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✨ LLM interpretation of page content

💰 PowerNet Charges Methodology (continued from previous page)

Domain💰 Finance & Revenue
KeywordsElectricity, Network Charges, PowerNet, Subtransmission, Distribution, Fixed Charges, Component Valuation, Backup Supply

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