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October 2004 Government Policy Statement on Electricity Governance (GPS)

[ Last Updated 29 November 2005 ]


Distribution Pricing Methodologies

98. The Electricity Commission should develop in consultation with interested parties principles or model approaches to distribution pricing and monitor their uptake. The Commission should recommend regulations if required to ensure compliance.

99. The Government expects distribution companies to keep any changes to rural line charges in line with urban line charges. The Commission should monitor developments in rural charges.

Distribution Use of System Agreements

100. The Electricity Commission should develop in consultation with interested parties model use of system agreements for use by distribution lines. If the Commission thinks it necessary and beneficial, it may also recommend regulations. Arrangements should take into account the interests of consumers, retailers and distributors and should be consistent with:

  • arrangements for connecting distributed generation to distribution networks (described later)
  • obligations imposed on retailers as a result of arrangements relating to contracts between retailers and consumers
  • arrangements covering distribution pricing methodologies
  • arrangements for the use of ripple control for load management, and
  • any other regulations promulgated under the Electricity Act 1992.

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