Transmission Network Pricing Principles




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NEW ZEALAND GAZETTE, No. 92

4 JUNE 2008

• the costs of connection should as far as possible be allocated on a user-pays
basis

• the pricing of new and replacement investments in the grid should provide
beneficiaries with strong incentives to identify least-cost investment options,
including distributed generation, energy efficiency and demand management
options, and combinations of those options.

• pricing for new generation and load should provide clear locational signals

• sunk costs should be allocated in a way that minimises distortions to
production/consumption and investment decisions by grid users and
consumers

• the overall pricing structure should include a variable element that reflects the
marginal costs of supply in order to provide an incentive to minimise grid
constraints.



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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2008, No 92


Gazette.govt.nz PDF NZ Gazette 2008, No 92





✨ LLM interpretation of page content

🏭 Investment in and maintenance of the transmission network (continued from previous page)

🏭 Trade, Customs & Industry
Transmission network, investment, maintenance, grid upgrade plans, Transpower, Commission, reliability standards, Government energy policy, pricing principles, user-pays basis, locational signals, marginal costs