Ann: GENERAL: TRP: Transpower signs System Operator Service...

• Release Date: 22/02/16 16:30
• Summary: GENERAL: TRP: Transpower signs System Operator Service Provider contract
• Price Sensitive: No
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					TRP
22/02/2016 16:30
GENERAL
PRICE SENSITIVE
REL: 1630 HRS Transpower New Zealand Limited

GENERAL: TRP: Transpower signs  System Operator Service Provider contract

Transpower and the Electricity Authority have completed negotiations for an
updated electricity system operator service provider contract. The contract,
worth $216 million over the next five years, will come into effect on 1 July
2016.

Transpower, as the system operator, is responsible for managing the real time
operation of the New Zealand electricity system. The system operator's focus
has been aligned with the Electricity Authority's objective to promote
competition, reliability and efficiency for the long-term benefit of
consumers.

The new contract includes increased transparency over service and
performance, greater commercial discipline on costs and project management,
and requirements for more engagement with stakeholders.

Key changes in the new system operator service provider contract include:
o A fixed fee for the majority of services has been agreed. Any increases
above the fixed fee (other than as a result of indexation) now require
industry consultation. An efficiency incentive has been put in place.
o Any capital expenditure to improve or enhance the services must be
consulted on and approved by the Electricity Authority.
o Performance and delivery incentives will be agreed annually; and
o New reporting requirements such as performance-related audits, final
business cases for capital projects will enable clearer demonstration that
the services are being delivered effectively. high value capital projects
will be subject to a benefit realisation review following completion.

For further information, please contact:
Rebecca Wilson, Corporate Communications Manager, 04 590 6695; 021 578 608
End CA:00278095 For:TRP    Type:GENERAL    Time:2016-02-22 16:30:35