Customised price-quality path fast track processes for input methodologies review

This page contains information on the ‘fast track’ processes to consider certain customised price-quality path matters ahead of the indicated timeframes for the main input methodologies review.

On 21 July 2015 the Commission decided to fast track consideration of certain customised price-quality path (CPP) matters within the input methodologies (IM) review. Two separate processes (or limbs) were undertaken to provide benefits for CPP applications anticipated to be received before the scheduled completion of the IM review in December 2016.

Limb 1 – Changes affecting the preparation, assessment and determination of CPP applications

  • Introducing flexibility for suppliers through:
    • modifications or exemptions to the process for preparing, and content of, CPP proposals
    • allowing the use of alternative methodologies with equivalent effect (AMWEEs) for proposing a CPP.
  • Accepting CPP applications for consideration if they comply with the process and content IMs “in all material respects”.
  • Clarifying which IMs apply if IM amendments are made after a proposal is accepted as complete but before a CPP is determined.

A final decision on Limb 1 was published 12 November 2015 applying amendments to both electricity distribution and gas pipeline businesses.

Limb 2 – The alignment of the weighted average cost of capital (WACC) for CPPs with the prevailing WACC for default price-quality paths (DPP)

An Amended Notice of Intention was published On 9 October 2015 to explain that the issues considered under Limb 2 of the CPP fast track were no longer being progressed in the fast track and would instead be considered in the main input methodologies review. This decision was taken as there was no longer a pressing need to resolve the alignment issue sooner than December 2016 following Powerco’s deferral of its CPP application beyond this timeframe.

Documents

Cross-submissions — Draft decision on Limb 1 of CPP fast track amendments

06/10/2015 (2 documents)

Notification email - Receipt of cross submissions on Limb 1 draft decision - 5 October 2015 PDF (293 KB)
Published on 06 October 2015
MEUG - Cross submission on Limb 1 draft decision - 2 Oct 2015 PDF (82 KB)
Published on 06 October 2015

Draft decision on Limb 1 of CPP fast track amendments

07/09/2015 (2 documents)

IM review - Draft decision on Limb 1 of CPP fast track amendments - 7 September 2015 PDF (650 KB)
Published on 07 September 2015
Notification email for draft decision on Limb 1 CPP fast track amendments -7 September 2015 PDF (301 KB)
Published on 07 September 2015

Airports fast track announcement and request for comment on further issues raised by parties in submissions on the CPP fast track

11/08/2015 (2 documents)

Input methodologies review – process paper update on fast track amendments – 3 July 2015 PDF (371 KB)
Published on 03 July 2015
Notification email for decision on whether to fast track amendments – 3 July 2015 PDF (355 KB)
Published on 03 July 2015