The 2010–2015 default price-quality path applied to electricity distribution businesses from 1 April 2010 to 31 March 2015.
We published the requirements of the 2010-15 default price-quality path in 2009 including:
starting prices as the prices that applied as at 31 March 2010
the annual rate of change as CPI-0%
quality standards based on historical averages of reliability
the requirements for reporting compliance annually.
In 2012 the default price-quality paths were reset
On 30 November 2012 the default price-quality paths were reset to apply input methodologies to the default price-quality paths for the first time. The most notable feature of the reset was new starting prices based on the current and projected profitability of each supplier.
Other important features of the reset were:
alternative rates of change were applied to some suppliers to minimise the risk of price shocks to consumers
claw-back was applied for the 2012-13 year to offset the impact of the delay in resetting the default price-quality paths arising from Vector Limited’s 2011 appeal to the High Court