Transpower currently charges generators, lines companies and major industries an unspecified amount for use of the grid, but only has temporary legal protection guaranteeing it gets paid.

That protection was granted by the High Court in June 2001, two years after state- owned generator Meridian Energy challenged aspects of Transpower's pricing policy and a court found Transpower could not legally enforce its charges.

Commission chairman Roy Hemmingway said advisory groups attached to the commission began discussing the new national grid pricing policy last week.

Their findings were expected to be released for public consultation in about six weeks.

He said once the new methodology was in place it would allow the commission to test the soundness of Transpower's proposed multibillion-dollar investment in the grid.

Transpower was looking forward to the commission settling the issue, Hemmingway said, but there was likely to be some bickering about the proposals.

"With grid pricing you can't do anything that isn't controversial. Grid pricing has been very controversial in the past."

One example was the cost of the high- voltage direct-current link between the islands, which had historically been allocated to South Island generators Meridian and Contact Energy.

There were good reasons why such a situation should be looked at to consider if North Island generating companies should also pay, but that would not be popular with them, Hemmingway said.

Transpower spokesman Chris Roberts said getting a proper grid pricing policy was the reason why it had not supported the industry self-governance vote.

"We've been saying we need this for four or five years.

"The regulator will provide some certainty that means us getting paid."

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