Commission Consults On Technical Changes To Draft Determination For Aurora Energy’s Customised Price-Quality Path

The Commerce Commission is consulting on two proposed technical changes to its draft determination on Aurora Energy’s proposal for a customised price-quality path (CPP).

In November 2020, the Commission published and consulted on its draft decision on Aurora Energy’s CPP proposal. Since publishing, the Commission has identified two technical changes that it proposes to make to the draft CPP determination.

These two technical changes are the only areas the Commerce Commission is re-consulting on. Submissions and cross submissions on other aspects of the draft CPP decision have been received and published. These are currently being considered and will inform the Commission’s final decision, which is still to be made.

The proposed changes relate to two aspects of how the CPP will operate. They do not impact the key features of the CPP, such as Aurora Energy’s maximum allowable revenue or quality standards.

The two technical changes to the draft CPP determination would:

• ensure that if Aurora Energy buys or sells network assets, the CPP adjusts to reflect the changes to the regulated services Aurora supplies. This proposed change resolves an oversight from our draft decision and makes the draft CPP determination consistent with the default price-quality path determination that applies to other electricity distribution businesses.

• allow Aurora energy to set prices in the 2021/22 financial year based on the allowable revenue the Commission sets in its final decision on the CPP in March 2021.

The Commission has published a consultation paper online that includes further details about the proposed changes. This can be found here.

If you wish to provide feedback on the two proposed changes, please email your submission to feedbackauroraplan@comcom.govt.nz with ‘CPP Technical changes consultation’ in the subject line. Submissions close at 5pm on 18 February 2021.

Background

About Aurora Energy
Aurora Energy owns and operates the poles, lines, and other equipment that distributes electricity from Transpower’s national grid to more than 90,000 homes, farms, and businesses in Dunedin, Central Otago, and Queenstown Lakes. Aurora Energy is a wholly owned subsidiary of Dunedin City Holdings Limited, owned by the Dunedin City Council.
 

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