Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Draft price-quality paths for electricity distributors

Commerce Commission releases draft price-quality paths for electricity distributors

The Commerce Commission is seeking submissions on its proposed average price limits and quality targets for 16 electricity distributors.

The draft default price-quality paths cover the period 2015-2020, and will take effect from 1 April 2015.
Commerce Commission Deputy Chair Sue Begg said, “the draft price-quality paths balance the need to ensure that these businesses have incentives to invest, and to improve the efficiency and quality of their services, while being constrained from achieving excessive profits.”

“Our approach to setting these price-quality paths is based on methodologies that we have used before. The pricing model has been available for some time. This should mean that businesses, investors, and consumers can better predict the kinds of price changes that will result from our price resets,” said Ms Begg.

This proposed price path would see overall average prices decreasing by a small margin from 2015. “One of the reasons for the overall decrease in prices is that the benefits of efficiency gains by suppliers are being passed through to consumers,” said Ms Begg. “This is an important benefit of the price-reset process.”

Adjustments for individual distributors vary by region. Some regions will see price increases primarily because those distributors under-recovered in previous years and are still catching up. The two proposed largest increases are 13.5% for Alpine Energy and 8.4% for Top Energy. The Commission has proposed an on-going cap on the increases for these distributors over the five years to limit the size of price increases for consumers in those regions.

The Commission is also proposing new incentive schemes that will provide long-term benefits for consumers by rewarding and penalising businesses based on their performance. This includes incentives schemes for quality and energy efficiency.

“We have been working closely with the sector in developing the incentives to make sure that they work well. We would like to acknowledge the work of the ENA technical groups in this process,“ said Ms Begg.

The draft decision does not apply to Orion New Zealand Limited, which applied for and was granted a customised price-quality path in recognition of its change in circumstances after the Canterbury earthquakes. Transpower is subject to a separate individual price-quality path.

Any distributor who believes the default price-quality path does not suit their current circumstances can apply for a customised price-quality path.

The draft decision is now open for consultation, and will be subject to change following submissions and any further information provided by distributors. Interested parties should email their submissions to regulation.branch@comcom.govt.nzby 15 August 2014.

Following consultation, the Commission will make a final decision on the reset of the default price-quality path by 28 November 2014. The new default price-quality paths will apply to distributors from 1 April 2015.

The draft decision and a background fact sheet can be found at http://www.comcom.govt.nz/regulated-industries/electricity/electricity-default-price-quality-path/default-price-quality-path-from-2015/.

A map showing changes by distributor can be found at http://www.comcom.govt.nz/electricity-distributor-map/

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news