Electricity Commission’s Review of Submissions on Preliminary paper on Transmission Contract Structure & Counterparties

The Commission received thirteen written submissions on the above matter.

Following a review and analysis of these submissions, the Commission has decided to reconfirm its preliminary proposals which will mean that a final decision on the transmission contract structure and on the categories of designated transmission customers to be formally consulted on will be delayed until benchmark agreements are finalised.

Based on feedback in the submissions, the Commission recognises that the issues of transmission service delivery, particularly identifying the nature of the services and matching them to those with a legitimate interest in those services, is likely to be of concern to stakeholders. The Commission therefore intends to give this aspect of the benchmark agreement work programme the utmost priority.

The Commission also notes that there is support for exploring further regulation of transmission incentives and regulation of distributor- retailer- customer relationships as options for dealing with service delivery issues.

Legal, technical and economic advisors have now been appointed to assist the Commission in undertaking the development of benchmark transmission agreements including service definitions, with work to commence during December 2004.

The Commission anticipates going out for preliminary consultation on benchmark transmission agreements, including service definitions, in March 2005. It expects the work on finalising benchmark agreements to be completed in accordance with the timetable set out in the Government Policy Statement.

Further background material can be found in the draft reports section of the Transmission Advisory Groups pages.