Electricity lines default price-quality path

The main components of a default price-quality path (DPP) are:

• the maximum prices/revenues that are allowed at the start of the regulatory period (ie, starting prices)
• the annual rate at which all the businesses' maximum allowed prices can increase (ie, rate of change) – this is expressed in the form of 'CPI-X', meaning prices are restricted from increasing each year by more than the rate of inflation less a certain number of percentage points (termed an 'X-factor')
• the minimum service quality standards that must be met.

We must also reset the components of a DPP before it expires to create a new path for the next regulatory period. A DPP reset is an opportunity to determine appropriate price and quality controls for the future to promote the objectives of the Part 4 regulatory regime.