The Commerce Commission (“Commission”) gives the following notice under Part 4 of the Commerce Act 1986 (“the Act”).

Notice of determination

1. On 28 November 2014, the Commission issued the Electricity Distribution Services Default Price-Quality Path Determination 2015 [2014] NZCC 33 (“EDB DPP Determination”), under section 52P of the Act.
2. The determination sets out the default price-quality path applicable to regulated suppliers of electricity distribution businesses (“EDBs”).
3. The determination is made in accordance with the Commission’s input methodologies applicable to EDBs, as specified in the Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26.
4. This notice summarises the determination in accordance with section 52P(7)(b) of the Act.
5. This determination applies for the regulatory period 1 April 2015 to 31 March 2020.
6. This determination applies to all non-exempt EDBs (EDBs other than consumer-owned EDBs exempt under section 54G(2) of the Act), excluding Orion New Zealand Limited. This determination will apply to Orion New Zealand Limited after the expiration of the Orion New Zealand Limited Customised Price-Quality Path Determination 2013 [2013] NZCC 21.

Summary of the determinations

7. The determination applies for the regulatory period starting 1 April 2015 and expiring on 31 March 2020 to the following non-exempt EDBs:
• Alpine Energy Limited
• Aurora Energy Limited
• Centralines Limited
• Eastland Network Limited
• Electricity Ashburton Limited
• Electricity Invercargill Limited
• Horizon Energy Distribution Limited
• Nelson Electricity Limited
• Network Tasman Limited
• OtagoNet Joint Venture
• Powerco Limited
• The Lines Company Limited
• Top Energy Limited
• Unison Networks Limited
• Vector Limited
• Wellington Electricity Lines Limited
8. The determination applies to Orion New Zealand Limited after the expiration of the Orion New Zealand Limited Customised Price-Quality Path Determination 2013 [2013] NZCC 21.
9. The determination sets out the starting prices (expressed in the form of maximum allowable revenue) for each of the non-exempt EDBs, the annual rate of change relative to CPI that generally apply to non-exempt EDBs, and the alternative rates of change that apply to specified non-exempt EDBs.
10. The quality standards that apply are specified by an annual reliability assessment of the non-exempt EDB against the SAIDI and SAIFI limits for each non-exempt EDB, which are specified in the determination. Each non-exempt EDB must comply with the annual reliability assessment for that assessment period, or in each of the two preceding assessment periods.
11. Each non-exempt EDB is also subject to incentives to maintain or improve its quality of supply which includes:
1. penalties by way of a reduction in the non-exempt EDB’s maximum prices based on whether, and by what amount, the non-exempt EDB fails to meet the required quality standards; and
2. rewards by way of an increase in the non-exempt EDB’s maximum prices based on whether, and by what amount, the non-exempt EDB exceeds the required quality standards.
12. Each non-exempt EDB must submit a compliance statement within 50 working days following the end of each assessment period during the regulatory control period.
13. Each non-exempt EDB may, except in the 12 months before the end of the regulatory period, submit a proposal for a customised price-quality path:
1. in the period beginning on the second Monday in February and ending six working days after;
2. in the period beginning on the first Monday of May and ending six working days after; or
3. within 24 months following a catastrophic event.

Further information

14. Copies of the determination and reasons paper are available on the Commission’s website at
    www.comcom.govt.nz/regulated-industries/electricity/electricity-default-price-quality-path/default-price-quality-path-from-2015/
    and are available for inspection free of charge at the Commission (during ordinary office hours), or for purchase at a reasonable price at the Commission, 44 The Terrace, Wellington.

Dated at Wellington this 28th day of November 2014.

COMMERCE COMMISSION.