Draft decision released on Wellington Electricity's Moa Point project

The project involves upgrading electricity infrastructure at Moa Point and installing a new cable connection from the Ira Street Zone Substation to ensure the new facility can be supplied reliably while maintaining security of electricity supply in the area. 

Under the economic regulation framework, electricity lines companies cannot automatically pass unexpected major project costs on to consumers. They must apply to the Commerce Commission, which assesses whether the investment is justified, whether the lines company could reprioritise other work to keep within its existing revenue allowance, and whether consumers should contribute to the cost. This framework is designed to balance investment in critical infrastructure with protecting consumers from paying more than necessary. 

In assessing Wellington Electricity's application, we considered whether the project was reasonable to not include in its business planning, whether the investment is needed, if the proposed costs are prudent and efficient and if the costs are allocated appropriately between beneficiaries and consumers.

Our draft decision is that the project meets the relevant regulatory tests. We propose to approve Wellington Electricity's application and amend its price path to allow recovery of additional revenue associated with the project. 

Wellington Electricity estimates this would increase a typical household electricity bill by around 10 to 20 cents per month, or approximately $2.40 per year. 

Wellington City Council will contribute $8.5 million towards the project through upfront contributions and ongoing payments, helping reduce the costs borne by other consumers. 

The Commission is now seeking submissions on the draft decision before making a final determination. Submission close at 5pm on 31 August 2026.