2025 reset of the electricity default price-quality path

We are setting DPP4 in the context of an energy transition to increased electrification, climate change impacts, high inflation, and significant cost pressures facing both EDBs and consumers.

On 2 November 2023 we published our Issues paper setting out our understanding of this context and seeking stakeholders' views on the key issues we consider relevant for DPP4. On 22 February 2024 we published our Issues paper on the Financeability of electricity distribution services in the default price-quality path and the preliminary version of the DPP4 financial model on our website. In February we also held a workshop on the capital expenditure framework design and a second workshop in March on the approach to incentivising the use of innovation and non-traditional solutions. Details on these Issues papers, workshops and related stakeholder submissions can be found at the end of this page.

Our project timeline is included in the table below:

Project Timeline

The below diagram shows the high-level dates for the DPP4 project and how these interact with other workstreams, including the input methodologies.

Electricity distribution businesses subject to DPP4

*Aurora Energy is currently on a customised price-quality path which expires 31 March 2026, when it will be transitioned onto DPP4.

Workshops

Forecasting and incentivising efficient expenditure (November 2022)

On 7 November 2022, we ran a workshop with electricity distribution businesses (EDBs) on the challenges of ‘forecasting and incentivising efficient expenditure’ in the context of increasing electrification being seen across Aotearoa New Zealand.

After the workshop we sought feedback from EDBs to help inform our planning for DPP4. Specific feedback was sought on emerging issues, how Asset Management Plans may contribute to setting the DPP4 and our programme of performance analysis. Submissions to the workshop have been posted to our website.

A recording of the workshop is available below. A copy of the slides used in the workshop and submissions in response can be found in the documents section below.

Capital expenditure framework design (February 2024)

On 26 February 2024, we ran a workshop with EDBs and other stakeholders to share our early thinking on key components of the capex framework for the DPP4 reset (including how the findings from the 2023 AMP review could be used in the framework). The workshop was intended to facilitate discussion and reflects early thinking of Commission staff only.

A recording of the workshop is available below. A copy of the slides used in the workshop and submissions in response can be found in the documents section below.

Innovation and non-traditional solutions workshop (March 2024)

On Monday 4 March 2024, we held an online workshop to share our early thinking and to seek feedback from stakeholders on how to best incentivise innovation and the use of non-traditional solutions within the DPP regime. We also sought feedback on how the Innovation and Non-Traditional Solutions Allowance (INTSA) could be used).

A recording of the workshop is available below. A copy of the slides used in the workshop  and the formal submissions we received in response can be found in the documents section at the bottom of this page.

DPP4 Knowledge sharing presentation: An introduction to the default price-quality path (August 2023)

On 9 August we held an online knowledge sharing presentation on the default price-quality path (DPP). A recording of the presentation is available below.

The presentation is targeted at industry stakeholders but is open to anyone who would like to learn more about default price-quality paths – including those new to the regime and those seeking a refresher.