New Zealand Gazette – 2004 – No. 37

Page 935

✨ Electricity Distribution Thresholds Notice



31 MARCH

NEW ZEALAND GAZETTE

935

$Q_i$

is the base quantity corresponding to the $i^{\text{th}}$ price for the
year ending 31 March 2003 or, if clause 5(2) applies, is
the base quantity corresponding to the $i^{\text{th}}$ price for the
most recent year ending 31 March during which the
distribution business has restructured its prices;

$K_t$

is the sum of all pass-through costs for the assessment
period ending in calendar year $t$;

$R_t$

is the allowable notional revenue under the CPI-X price
path at the assessment date occurring in calendar year $t$,
being equal to $R_{t-1} (1 + \Delta CPIt)(1 - X)$, where the initial
value for the price path, at the reference date, is $R{2004}$;

$X$

is the “X factor” value specified in Schedule 1 for the
distribution business, subject to clause 5(3);

$R_{2004}$

is the maximum notional revenue at the reference date
which would not have caused the distribution business to
breach the price path threshold under the initial notice at
that date, subject to clauses 5(2), 5(3) and 5(4) and in all
cases using the same base quantities used to determine
$NR_t$;

$\Delta CPI_t$

is the average change in the consumer price index over
the calendar year that ends during the assessment period
(calculated in accordance with the following expression):

$$
\Delta CPIt = \frac{CPI{Q1,t-1} + CPI{Q2,t-1} + CPI{Q3,t-1} + CPI{Q4,t-1}}{CPI{Q1,t-2} + CPI{Q2,t-2} + CPI{Q3,t-2} + CPI_{Q4,t-2}} - 1
$$

where $CPI_{Qj,y}$ is the consumer price All Groups Index
SE9A figure published by Statistics New Zealand for the
quarter $j$ in the calendar year $y$;

(b) notional revenue during each assessment period: the notional revenue
of a distribution business at any time during an assessment period is not
to exceed the greater of the notional revenue of the distribution business
at the assessment date on which that assessment period ends and the
notional revenue of the distribution business at the previous assessment
date under this clause (or, if the previous assessment date is the
reference date, under clause 5 of the initial notice).

(2) If, during an assessment period, a distribution business restructures its prices and
provides the Commission with evidence that the restructuring, of itself, did not



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 37


Gazette.govt.nz — PDF NZ Gazette 2004, No 37




✨ LLM interpretation of page content

🏭 Electricity Distribution Thresholds Notice 2004 (continued from previous page)

🏭 Trade, Customs & Industry
Commerce Act, Electricity Distribution, Thresholds, Definitions, Specified Services, SAIFI, Interruptions, Transmission, Distribution