Under section 52Q of the Commerce Act 1986 (“Act”), the Commerce Commission (“Commission”) gives notice that it has amended the Aurora Energy Limited Electricity Distribution Customised Price-Quality Path Determination 2021 [2021] NZCC 3 (“principal determination”) to increase Aurora Energy Limited’s allowable revenues following a change to the weighted average cost of capital.

The amendments are set out in Aurora Energy Limited Electricity Distribution Customised Price-Quality Path (WACC Change Event Reconsideration) Amendment Determination 2025 [2025] NZCC 3 (“amendment determination”).

On 25 September 2024, we determined and published the weighted average cost of capital for the default price-quality path regulatory period commencing on 1 April 2025 (“WACC change”). Following the WACC change, we reconsidered the above principal determination under Subpart 6 of Part 5 of the Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26 (“IMs”). After reconsidering a CPP in these circumstances, and to align the CPP’s allowable revenues with the WACC change, the IMs:

1. require us to amend the CPP’s “maximum allowable revenue after tax” and “forecast net allowable revenue”; and
2. enable us to further amend the CPP’s price path provided such amendments are reasonably necessary to take account of a change in costs.

The amendment determination provide for (a) and (b) above, aligning Aurora Energy Limited’s allowable revenues with the WACC change.

This amendment determination comes into force on 25 February 2025.

Further information

A copy of the amendment and our final decision paper on the amendment is available on our website: https://comcom.govt.nz/regulated-industries/electricity-lines/projects/our-assessment-of-aurora-energys-investment-plan?target=timeline, and for inspection free of charge, or for purchase at a reasonable price, at the Commission’s premises (during ordinary office hours) at 44 The Terrace, Wellington.

COMMERCE COMMISSION.