Customised price-quality path fast track processes

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2015/16 input methodologies review

We fast tracked the review of certain CPP requirements to provide greater certainty and improvements for potential CPP applicants considering submitting a CPP application during, or immediately after, the wider Input Methodologies (IM) review.

The fast track process comprised of two separate limbs of work each with different timeframes and topic areas.

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.

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.

download [2015] NZCC 28 Electricity and gas customised paths input methodologies amendments determination 2015 – 12 November 2015

( 402 KB, PDF )

download Final reasons paper for Limb 1 of the CPP fast track – 12 November 2015

( 487 KB, PDF )

download Amended notice of intention Input methodologies review - 9 October 2015

( 373 KB, PDF )

download IM review second process update paper for CPP fast track amendments - 9 October 2015

( 352 KB, PDF )

download Commerce Commission Letter to John Loughlin Powerco - 22 September 2015

( 424 KB, PDF )

download Powerco Letter to Dr Mark Berry Commerce Commission - 17 September 2015

( 152 KB, PDF )