Orion’s CPP 2027
On 9 June 2026 Orion New Zealand Limited (Orion) formally applied to modify its regulated revenue path via a customised price-quality path (CPP).
Orion has applied to the Commission for approval of a customised price-path (CPP) so that it can significantly increase the amount it invests in Canterbury's electricity network over the next 5 years.
Orion says this investment is needed to replace ageing equipment, support population growth and strengthen resilience.
Orion is the local lines company serving customers in central Waitaha Canterbury, including Christchurch, Banks Peninsula and Arthur's Pass.
Our role is to assess Orion’s proposal and determine whether consumers would receive value for money from this investment. We consider whether the proposed investment is necessary, efficient, deliverable and in the long-term interests of Canterbury consumers.
We then decide the maximum revenue Orion can recover from consumers and the quality standards it must meet. These new revenue limits and quality standards would apply from 1 April 2027 for 5 years.
Current stage in the process
We published our draft decision on 10 November 2026, and we are seeking stakeholder feedback on this before we make our final decision in March 2027.
An outline of our process and indicative timeframes, and all relevant documents can be found at the bottom of this page.
Overview of our draft decision
Consumers need electricity services that are both affordable and reliable. Orion’s network is currently performing well and delivering reliable services across Canterbury, but many of its assets are reaching the end of their expected lives. Our draft decision seeks to ensure consumers pay only for expenditure that is justified and in their long-term interests.
In this context, we have assessed Orion’s plan and we propose to approve expenditure of around $1.35 billion over the 5-year CPP period. This is a reduction on the amount that Orion proposed of around 11%. This reflects our view that Orion has made the case for most, but not all, of its planned expenditure.
In addition, we propose smoothing Orion’s revenue allowance over the 5-year CPP period to reduce the initial impact on consumers’ bills. Orion would also be required to report publicly on its progress so people can see what work has been delivered and whether the investment is making a difference.
We want to hear from you
We welcome views on our Orion CPP draft decision package and any views you think we should consider for our final decision.
Submissions can be emailed to infrastructure.regulation@comcom.govt.nz using the subject line ‘Submission – Orion CPP draft decision’.
- Submissions on our draft decision for Orion’s CPP are due by 5pm, Tuesday 8 December 2026. Cross-submissions are due by 5pm, 23 December 2026.
- Submissions on Orion ID requirements and ID determination are due by 5pm, 15 December 2026. Cross-submissions are due by 5pm, 11 January 2027.
Information for Orion customers
The impact on retail bills can be difficult to predict because retailers decide how to package and pass on costs to their customers. We estimate our draft decision would increase the monthly bill of a typical household by around $21 by the end of the CPP period.
This would look like an increase of just under $10 in the first year, and then an average of about $3 for the next 4 years1. The money from these increases will go toward maintaining and upgrading Orion’s network so consumers can benefit from a safe, reliable and resilient network that can adapt to future energy needs.
If you are an Orion customer and want to know how your bill may be impacted, we suggest you contact your electricity retailer who is well placed to explain the individual components of your bill.
You can also find out more information about what makes up your electricity bill on the Electricity Authority's websiteopen_in_new.
We know that any additional cost on households and businesses can be difficult to manage. We've tested Orion's proposal to make sure every dollar is justified and will benefit Cantabrians in the long term.
If you’re finding it difficult to pay your power bills, support is available.
The Electricity Authority website has resources If you're finding it hard to pay your bill.
It's important to tell your power company if you are having trouble paying your electricity bills so they can support you.
You can also use Billyopen_in_new to check if you could save money by switching retailers.