Process for setting Powerco’s electricity revenue to 2025 gets underway

The Commerce Commission is inviting feedback on key issues as part of the first stage in the transition of Powerco Limited (Powerco) from a customised price-quality path (CPP) to the default price-quality path (DPP). A price path sets the maximum revenue a regulated lines business can recover and the minimum quality of service it must deliver.

Powerco is one of two electricity distribution businesses (EDBs) in New Zealand on a customised price-quality path. Other price-quality regulated EDBs are already on the 2020-2025 default price-quality path (DPP3). Powerco’s CPP expires on 31 March 2023, when the company will move to DPP3 for the final two years of the DPP3 period.

The process and issues paper published today sets out the timeline for the Commission’s process to transition Powerco to the DPP and key issues the Commission is considering.

The Commission is particularly interested in hearing from stakeholders about the key issues – such as its approach to setting revenue allowances, and revenue smoothing to avoid potential price-shocks – and any others they think may be relevant.

Feedback from stakeholders will inform the Commission’s draft decision on the transition, which will be released later this year for consultation.

The process and issues paper is available on the Commission’s website

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