Draft CPP Proposal 2022-24

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Your local electricity network has served the community well for many years, but is getting old and needs further investment to replace ageing assets, add capacity to meet the needs of a growing region and keep pace with changes in technology.

Aurora Energy’s distribution prices have been the among the lowest in the country but are no longer sufficient to support the level of investment needed to provide a safe and reliable service and to prepare the network for the future.

As a regulated business, Aurora Energy is required to consult with consumers before we can change our prices or service levels and our proposed investment plan must be approved by the industry regulator, the Commerce Commission.

In June 2020, we are submitting our proposal for a customised price-quality path, or CPP, for managing the Aurora Energy electricity network with the Commerce Commission.

As we develop our proposal, we want to hear your views about what you expect from your electricity supply and what you value, what our network investment could mean for future network charges and your customer service preferences.

Throughout this process we’ll be reviewing the types of services we provide and the way we manage and invest in our network to ensure we continue to deliver services safely, reliably and efficiently and meet our customers’ needs and expectations.

Customised Price-Quality Path Proposal

Electricity networks, and what they can charge to recover the costs of providing electricity supply, are regulated by the Commerce Commission. The Commerce Commission can set a customised price-quality path to better suit the needs of a regulated electricity business and the long term interests of its consumers.

Aurora Energy has decided to apply for a customised price-quality path in June 2020, when we will submit our proposal for managing the Aurora Energy electricity network. Our situation and future network investment plans will be reviewed by the Commerce Commission and its independent verifier before a customised price-quality path is determined in late 2020.

Our proposal will outline our planned network investment, service levels and pricing for a period of up to five years. If approved, our customised price-quality path would take effect from 1 April 2021.

Where investment alternatives exist, we need to understand customers’ views on the trade-off between the prices they pay and the service they receive for a range of possible options. And to make these options meaningful, we need feedback that reflects the diverse mix of customers connected to our network.

With your help, we can better understand your future energy requirements, what services matter to you and the prices you expect to pay.

Consultation now closed

Consultation has now closed on Aurora Energy’s draft proposal for future network investment in the years 2022-2024.

Thank you to those who provided us with valuable feedback. Over the past few months we have had conversations with the community and received your submissions and comments on what we are planning.

We’ll consider all your feedback as we refine our draft proposal.

What’s next?

Between now and April 2020, we will review our draft proposal based on your feedback and the feedback from the Commerce Commission’s independent verifier.

We will finalise our proposal and apply for a customised price-quality path to the Commerce Commission in June 2020.

A summary of all the feedback we received during consultation, and how we responded to the issues raised, will be included in our final application to the Commerce Commission and will be publicly available.

There will be further opportunity for feedback when the Commerce Commission holds its own consultation during the period July - December 2020.

Register here for future updates, or keep an eye on the Updates section of this website https://yoursay.auroraenergy.co.nz/news-and-updates.

Your local electricity network has served the community well for many years, but is getting old and needs further investment to replace ageing assets, add capacity to meet the needs of a growing region and keep pace with changes in technology.

Aurora Energy’s distribution prices have been the among the lowest in the country but are no longer sufficient to support the level of investment needed to provide a safe and reliable service and to prepare the network for the future.

As a regulated business, Aurora Energy is required to consult with consumers before we can change our prices or service levels and our proposed investment plan must be approved by the industry regulator, the Commerce Commission.

In June 2020, we are submitting our proposal for a customised price-quality path, or CPP, for managing the Aurora Energy electricity network with the Commerce Commission.

As we develop our proposal, we want to hear your views about what you expect from your electricity supply and what you value, what our network investment could mean for future network charges and your customer service preferences.

Throughout this process we’ll be reviewing the types of services we provide and the way we manage and invest in our network to ensure we continue to deliver services safely, reliably and efficiently and meet our customers’ needs and expectations.

Customised Price-Quality Path Proposal

Electricity networks, and what they can charge to recover the costs of providing electricity supply, are regulated by the Commerce Commission. The Commerce Commission can set a customised price-quality path to better suit the needs of a regulated electricity business and the long term interests of its consumers.

Aurora Energy has decided to apply for a customised price-quality path in June 2020, when we will submit our proposal for managing the Aurora Energy electricity network. Our situation and future network investment plans will be reviewed by the Commerce Commission and its independent verifier before a customised price-quality path is determined in late 2020.

Our proposal will outline our planned network investment, service levels and pricing for a period of up to five years. If approved, our customised price-quality path would take effect from 1 April 2021.

Where investment alternatives exist, we need to understand customers’ views on the trade-off between the prices they pay and the service they receive for a range of possible options. And to make these options meaningful, we need feedback that reflects the diverse mix of customers connected to our network.

With your help, we can better understand your future energy requirements, what services matter to you and the prices you expect to pay.

Consultation now closed

Consultation has now closed on Aurora Energy’s draft proposal for future network investment in the years 2022-2024.

Thank you to those who provided us with valuable feedback. Over the past few months we have had conversations with the community and received your submissions and comments on what we are planning.

We’ll consider all your feedback as we refine our draft proposal.

What’s next?

Between now and April 2020, we will review our draft proposal based on your feedback and the feedback from the Commerce Commission’s independent verifier.

We will finalise our proposal and apply for a customised price-quality path to the Commerce Commission in June 2020.

A summary of all the feedback we received during consultation, and how we responded to the issues raised, will be included in our final application to the Commerce Commission and will be publicly available.

There will be further opportunity for feedback when the Commerce Commission holds its own consultation during the period July - December 2020.

Register here for future updates, or keep an eye on the Updates section of this website https://yoursay.auroraenergy.co.nz/news-and-updates.