Orion’s transition to the 2015-2020 default price-quality path

On 28 November 2014, we set the default price-quality path (DPP) applying to 16 electricity distribution businesses for the five-year period from 1 April 2015 to 31 March 2020 (2015-2020 DPP).

Unless Orion seeks another CPP, it will transition from its CPP to the 2015-2020 DPP on 1 April 2019. This means that Orion will only be subject to the 2015-2020 DPP for one year.

On 14 March 2016, we began consultation on our approach for managing Orion’s transition. This process will help Orion to make an informed decision about whether to apply for another CPP from 1 April 2019.

On 1 July 2016, we published our draft decision for Orion’s transition. Our draft decision was to set Orion’s starting prices the same as the allowable prices that apply at the end of its CPP, excluding claw-back, with a CPI adjustment. Our draft report, which explains and invites submissions on our draft decision, and a draft amendment determination, which shows how we intend to implement our draft decision can be found below.

On 7 October 2016, we published our final decision, which was unchanged from the draft decision. Our final report, which explains the key considerations and reasons for our decision, and an amendment determination, which shows how we have implemented our decision, can be found below.

Orion customised price-quality path proposal

On 20 February 2013 we received a proposal from Orion for a customised price-quality path (CPP) that takes into account Orion’s extraordinary circumstances following the Canterbury earthquakes in 2010 and 2011.

This proposal was expected and we have carried out a thorough consideration of the proposal as required by the Commerce Act.

Orion proposed to increase its maximum average prices and reduce its required quality standards over the five years commencing 1 April 2014. Orion’s proposal was intended to address the impact of the Canterbury earthquakes, including the recovery of additional costs, lower than expected revenues, and to fund future investment in its network.

Orion’s proposal complied with the relevant rules and requirements (collectively known as input methodologies) relating to the process for, and content of, proposals seeking to change maximum average prices and required quality standards.

Orion's network area is bordered by the Rakaia and Waimakariri rivers and stretches from the Southern Alps to Banks Peninsula.

 

Orion's network area

Final decision

The Commission released its final determination and reasons paper for Orion’s 2015 – 2019 CPP on Friday 29 November 2013.

We have undertaken a review of lessons learned through this first customised price-quality path process and the rules that apply to it.

You can read more about our CPP assessment and evaluation process in our Customised Price-Quality Regulation fact sheet.

Documents

Orion’s transition to the 2015-2020 DPP – Submissions on draft decision

15/08/2016 (2 documents)

MEUG submission on Orion’s transition to the 2015-2020 DPP – Draft decision – 12 August 2016 PDF (132 KB)
Published on 15 August 2016
Orion submission on Orion’s transition to the 2015-2020 DPP – Draft decision – 12 August 2016 PDF (267 KB)
Published on 15 August 2016

Orion’s transition to the 2015-2020 DPP – Draft decision

01/07/2016 (2 documents)

Orion’s transition to the 2015-2020 DPP – Draft report – 1 July 2016 PDF (723 KB)
Published on 01 July 2016
Orion’s transition to the 2015-2020 DPP – Draft amendment determination – 1 July 2016 PDF (492 KB)
Published on 01 July 2016

Letter from Orion – suggested approach for transition to the 2015-2020 DPP

13/06/2016 (1 documents)

Letter from Orion – suggested approach for transition to the 2015-2020 DPP – 2 June 2016 PDF (508 KB)
Published on 13 June 2016

Cross-submission on key considerations and possible approaches

02/05/2016 (1 documents)

MEUG cross-submission on Orion’s transition to the 2015-2020 DPP – Key considerations and possible approaches – 29 April 2016 PDF (136 KB)
Published on 02 May 2016

Submission on key considerations and possible approaches

18/04/2016 (1 documents)

Orion’s submission on transition to the 2015-2020 DPP – Key considerations and possible approaches – 15 April 2016 PDF (273 KB)
Published on 18 April 2016

Request for feedback on our process to set the customised price-quality path for Orion

04/03/2014 (1 documents)

Commerce Commission letter seeking feedback on setting Orion's customised price-quality path 4 March 2014 PDF (2.5 MB)
Published on 04 March 2014

Submissions on Proposed Approach to Specification of Controllable Opex

14/11/2013 (1 documents)

Orion submission on consultation on proposed approach to the specification of controllable opex 12 November 2013 PDF (326 KB)
Published on 14 November 2013

Cross-submissions on draft determination and draft decision on Orion CPP proposal

15/10/2013 (3 documents)

Orion cross submission Orion customised price quality path proposal 11 October 2013 PDF (1.5 MB)
Published on 15 October 2013
ENA cross submission on Orion CPP Determination 11 October 2013 PDF (1.1 MB)
Published on 15 October 2013
MEUG submission Orion customised price quality path proposal 11 October 2013 PDF (367 KB)
Published on 15 October 2013

Submissions on draft determination and draft decision on Orion CPP proposal

30/09/2013 (21 documents)

AIAL submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (64 KB)
Published on 23 September 2013
ANZCO submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (196 KB)
Published on 23 September 2013
Christchurch City Holdings submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (3.8 MB)
Published on 23 September 2013
Contact Energy Ltd submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (1.2 MB)
Published on 23 September 2013
CIAL submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (427 KB)
Published on 23 September 2013
ENA submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (153 KB)
Published on 23 September 2013
Meridian submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (91 KB)
Published on 23 September 2013
MEUG submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (178 KB)
Published on 23 September 2013
MEUG submission on draft determination and draft decision Appendix 1 Franks and Ogilvie letter 20 September 2013 PDF (292 KB)
Published on 23 September 2013
Orion submission on draft determination 30 September 2013 PDF (288 KB)
Published on 01 October 2013
Orion submission on draft decision on Orion CPP proposal 20 September 2013 PDF (704 KB)
Published on 23 September 2013
Orion submission on draft decision Appendix 1 Attachments 20 September 2013 PDF (8.9 MB)
Published on 23 September 2013
Orion submission on draft decision Appendix 2 Price Path Modelling Assumptions 20 September 2013 Microsoft Excel Spreadsheet (5.9 MB)
Published on 23 September 2013
Powerco submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (207 KB)
Published on 23 September 2013
Selwyn District Council submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (50 KB)
Published on 23 September 2013
Selwyn District Council submission on draft determination and draft decision Appendix 1 10-12-12 copy PDF (44 KB)
Published on 23 September 2013
Transpower submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (37 KB)
Published on 23 September 2013
Unison submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (527 KB)
Published on 23 September 2013
Vector submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (340 KB)
Published on 23 September 2013
Vector submission on draft determination and draft decision Appendix 1 Castalia Note 20 September 2013 PDF (144 KB)
Published on 23 September 2013
Wellington Electricity Lines Ltd submission on draft determination and draft decision on Orion CPP proposal 20 September 2013 PDF (1.4 MB)
Published on 23 September 2013

Process since draft decision

29/11/2013 (1 documents)

Orion CPP evaluation process PDF (62 KB)
Published on 29 November 2013

Submissions on Release of expert reports

28/06/2013 (15 documents)

ENA submission on expert reports from Yarrow and AON 27 June 2013 PDF (159 KB)
Published on 28 June 2013
Orion Attachment A Incenta Response to Yarrow Claw back Report PDF (347 KB)
Published on 28 June 2013
Orion Attachment B Nera Response to Yarrow Report PDF (139 KB)
Published on 28 June 2013
Orion Attachment C Marsh Second Expert Report PDF (79 KB)
Published on 28 June 2013
Orion Attachment D Chapman Tripp CPP Legal Framework PDF (1.3 MB)
Published on 28 June 2013
Orion Attachment E ComCom letter to Orion 17 May 2012 PDF (166 KB)
Published on 28 June 2013
Orion Attachment F ComCom letter to Orion 29 March 2011 PDF (193 KB)
Published on 28 June 2013
Orion Attachment G ComCom letter to Orion 23 Dec 2011 PDF (113 KB)
Published on 28 June 2013
Orion Attachment H References to regulatory decisions and supporting papers PDF (772 KB)
Published on 28 June 2013
Orion submission on expert reports from Yarrow and AON 27 June 2013 PDF (401 KB)
Published on 28 June 2013
Powerco submission on expert reports from Yarrow and AON 27 June 2013 PDF (182 KB)
Published on 28 June 2013
Vector submission on expert reports from Yarrow and AON 27 June 2013 Appendix 1 Castalia report PDF (255 KB)
Published on 28 June 2013
Vector submission on expert reports from Yarrow and AON 27 June 2013 PDF (249 KB)
Published on 28 June 2013
Wellington Electricity Lines Ltd submission on expert reports from Yarrow and AON 27 June 2013 PDF (1.2 MB)
Published on 28 June 2013
Unison submission on clawback and insurance issues response to external reports 27 June 2013 PDF (400 KB)
Published on 28 June 2013

Submissions on Orion's CPP proposal

30/05/2013 (20 documents)

CERA Submission on Orion CPP Proposal 24 May 2013 PDF (669 KB)
Published on 28 May 2013
Contact Energy Submission on Orion CPP Proposal 24 May 2013 PDF (314 KB)
Published on 28 May 2013
ENA Submission on Orion CPP Proposal 24 May 2013 PDF (228 KB)
Published on 28 May 2013
Genesis Energy Submission on Orion CPP Proposal 24 May 2013 PDF (95 KB)
Published on 28 May 2013
John Hoare Submission Orion CPP Proposal 24 May 2013 PDF (585 KB)
Published on 28 May 2013
Meridian submission on Issues Paper Orion CPP Proposal 22 May 2013 PDF (196 KB)
Published on 28 May 2013
MEUG submission on Orion CPP Proposal 24 May 2013 PDF (58 KB)
Published on 28 May 2013
MP for Christchurch Central submission on Issues Paper Orion CPP Proposal 23 May 2013 PDF (29 KB)
Published on 28 May 2013
NZMEA Submission on Orion CPP Proposal 24 May 2013 PDF (249 KB)
Published on 28 May 2013
Orion Submission on Orion CPP Proposal 24 May 2013 PDF (623 KB)
Published on 28 May 2013
Powerco Submission on Orion CPP Proposal 24 May 2013 PDF (454 KB)
Published on 28 May 2013
Ravensdown submission on Orion CPP Proposal 24 May 2013 PDF (111 KB)
Published on 28 May 2013
Unison submission on Orion CPP Proposal 24 May 2013 PDF (239 KB)
Published on 28 May 2013
Vector submission on Orion CPP Proposal Appendix 1 24 May 2013 PDF (221 KB)
Published on 28 May 2013
Wellington Electricity Lines Ltd Submission on Orion CPP Proposal 24 May 2013 PDF (1.3 MB)
Published on 28 May 2013
Vector submission on Orion CPP Proposal 24 May 2013 PDF (283 KB)
Published on 28 May 2013
Smart Power Submission on Orion CPP Proposal 29 May 2013 PDF (366 KB)
Published on 30 May 2013
Synlait Milk Ltd Submission on Orion CPP Proposal 24 May 2013 PDF (175 KB)
Published on 30 May 2013
ANZCo Submission on Orion CPP Proposal 24 May 2013 PDF (39 KB) Revised public version
Published on 07 June 2013
Mighty River Power Submission on Orion CPP Proposal 6 June 2013 PDF (220 KB)
Published on 07 June 2013

Process Paper - Orion CPP Proposal

19/04/2013 (1 documents)

Orion CPP proposal Process Paper 19 April 2013 PDF (180 KB)
Published on 19 April 2013

Orion customised price-quality path proposal

18/04/2013 (34 documents)

Orion CPP Proposal - Table 7A Unit cost escalators capex PDF (43 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 7B Unit cost escalators opex PDF (31 KB)
Published on 19 April 2013
Orion CPP Proposal - Tables 8 and 9 Cost Allocation PDF (24 KB)
Published on 19 April 2013
Orion Customised Price-Quality Path Proposal 19 February 2013 PDF (7.7 MB)
Published on 19 April 2013
Orion Customised Price-Quality Path Application 19 February 2013 PDF (18 MB)
Published on 19 April 2013
Orion CPP Proposal - Table 4A Major Projects (Nom) PDF (202 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 4B Other (Nom) PDF (62 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 4C Replacement (Nom) PDF (117 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 5 Network opex (Nominal) PDF (143 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 6A Non-network Opex (Nominal) PDF (103 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 6B Non-network Capex (Nominal) PDF (63 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 15 PWC System Tax BV 2009-2012 PDF (90 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 16 Tax Asset Values 2009-2012 PDF (50 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 1 Top 5 Capex and Opex Projects PDF (24 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 2 Capex Summary PDF (24 KB)
Published on 19 April 2013
Orion CPP Proposal - Table 3 Opex Summary PDF (13 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 10 Real Capex PDF (3.8 MB)
Published on 19 April 2013
Orion CPP Proposal - Model 11 Real Opex PDF (304 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 12 TAM PDF (165 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 13 Tax Differences PDF (170 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 14 PAP ISL Lines 1 August NBV Data (incl tax data) PDF (263 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 5 Nominal Opex PDF (584 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 6 NSFA Roll Forward Summary PDF (442 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 7 Other Inputs PDF (504 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 8 Projected chargeable quantities for CPP2 PDF (1.6 MB)
Published on 19 April 2013
Orion CPP Proposal - Model 4 Nominal Capex PDF (3.5 MB)
Published on 19 April 2013
Orion CPP Proposal - Appendix 37 PDF (12 MB)
Published on 19 April 2013
Orion CPP Proposal - Model 2 BBAR PDF (49 KB)
Published on 19 April 2013
Orion CPP Proposal - Model 3 Cost Escalator PDF (36 KB)
Published on 19 April 2013
Orion CPP Proposal - Addendum 12 April 2013 PDF (2.6 MB)
Published on 19 April 2013
Orion CPP Proposal - Appendices 1-35 PDF (9.9 MB)
Published on 19 April 2013
Orion CPP Proposal - Appendix 36 PDF (7.2 MB)
Published on 19 April 2013
Orion CPP Proposal - Model 1 Acquired Assets PDF (1.9 MB)
Published on 19 April 2013
Orion CPP Proposal - Model 9 RAB PDF (1.2 MB)
Published on 19 April 2013