Orion customised price-quality path proposal

Subscribe to Orion customised price-quality path proposal

This proposal has been expected. We will now carry out a thorough consideration of the proposal as required by the Commerce Act.

Orion is proposing to increase its maximum average prices and reduce its required quality standards over the five years commencing 1 April 2014. Orion’s proposal is intended to address the impact of the Canterbury earthquakes, including the recovery of additional costs, lower than expected revenues, and to fund future investment in its network.

Orion’s proposal complies with the relevant rules and requirements (collectively known as input methodologies) relating to the process for, and content of, proposals seeking to change maximum average prices and required quality standards.

Orion’s proposed changes to its prices and quality standards would affect electricity consumers in Orion's network area, which is bordered by the Rakaia and Waimakariri rivers and stretches from the Southern Alps to Banks Peninsula.

Orion's network area

We have released a process paper and an issues paper that explain how interested persons can have their say on Orion’s proposal, and our role and process in evaluating the proposal. The issues paper poses 10 questions which interested parties may wish to submit on. We seek submissions on Orion’s proposal by 24 May 2013. The process and issues papers and Orion’s proposal, including additional information provided by Orion at our request after submission of the proposal, can be found below.

We expect to consult publicly on our draft decision. The timeframes for considering the proposal are informed by the Act and our discussions with Orion.

We expect to make a final determination of Orion’s price path in November 2013. This determination would then take effect for Orion’s pricing for the year commencing 1 April 2014.

You can read more about our CPP assessment and evaluation process in our Customised Price-Quality Regulation fact sheet.