Customised price-quality paths requirements

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This page contains information on the review of the input methodologies for customised price-quality paths (CPP requirements) topic being considered as part of the input methodologies review.

Input methodologies for customised price-quality paths

Under s 52T(d) of the Act we must set out the requirements for customised price-quality path (CPP) proposals as input methodologies (IMs).

The requirements include:

  • the scope and specificity of information required
  • the extent of independent verification and audit
  • the extent of consultation and agreement with consumers
  • the criteria that the Commission will use to evaluate any proposal.

We are currently reviewing the CPP requirement IMs as part of the overall 7 year statutory review of IMs.

CPP requirements topic for the IM review

The IM review has provided us with an opportunity to consider what improvements can be made to how we implement the default/customised price-quality regime, as well as the specific requirements for CPPs. In particular, the CPP requirements topic considers:

  • how default price-quality paths (DPPs) and CPPs work together — when setting the initial IMs in 2010, we did not have practical experience of how the two mechanisms would interact
  • specific improvements to the CPP requirements — based on experience with the first CPP proposal made by Orion, and taking account of developments in information disclosure since the IMs were set in 2010.

Overview of progress in IM review for CPP requirements

In November 2015, we completed some changes to the CPP requirements to add flexibility to the CPP process as part of the IM review. You can see these changes on the CPP fast track processes page.

In June 2016, we published our draft decision for the main review the CPP requirements. The relevant paper for the CPP requirements is available below. The full draft decisions package including overarching papers that support the CPP Topic paper are available on the main IM review page.

Note: Our June 2016 draft decisions package did not include draft decisions on the CPP information requirements for gas pipeline businesses. We have deferred making draft decisions on these specific IMs to allow for the recent changes in ownership in the gas sector. We expect to update interested parties on the timing of the process for the review of the CPP information requirements for gas pipeline businesses in September 2016.

All papers and supporting documents, including draft amendments to the IM Determinations can now be found on the main IM review page.

Current documents


Project timeline

Type Description Indicative date/s
Completed Emerging views on opportunities to improve the way default and customised price-quality paths work together 29/02/2016
Completed Comments on emerging views paper due 24/03/2016
Completed Agenda and materials for workshop on information requirements and verifier due 28/03/2016
Completed Workshop on information requirements and verifier 19/04/2016
Completed Draft decisions papers published, except for the Report on the IM review 16/06/2016
Completed Report on the IM review published 22/06/2016
Completed Draft amended determinations published 22/06/2016
Completed Submissions on draft decisions papers (including the Report on the IM review) due 04/08/2016
Completed Cross-submissions on draft decisions papers (including the Report on the IM review) due 18/08/2016
Completed Submissions on draft amended determinations due 18/08/2016
Completed Process update 14/09/2016
Completed Technical consultation on updates to draft determinations (including airports ID determination) 13/10/2016
Completed Submissions due on technical consultation (including airports ID determination) 03/11/2016
Final Final decisions on IM review (including airports ID determination) 20/12/2016
Draft Draft decision on CPP information requirements for gas pipeline businesses 03/07/2017 - 29/09/2017
Final Final decision on CPP information requirements for gas pipeline businesses 02/10/2017 - 22/12/2017

Disclaimer

These dates are not official and may change. Please see the Terms and Conditions for further limitations.

Documents

Emerging views on opportunities to improve the way DPPs and CPPs work together

26/02/2016 (2 documents)

Emerging views on opportunities to improve the way DPPs and CPPs work together – 29 February 2016 PDF (548 KB)
Published on 29 February 2016
Notification email – IM review – process update paper and other documents published – 29 February 2016 PDF (389 KB)
Published on 29 February 2016