New Zealand Gazette – 2008 – No. 95

Page 2550

✨ Electricity Distribution Control Decisions

2550 NEW ZEALAND GAZETTE, No. 95 6 JUNE 2008

Decisions Not to Declare Control

The Commission has determined that it is consistent with section 57E of the Act to not make a declaration of control under Part 4A in respect of electricity distribution services supplied by those electricity distribution businesses contained in Table 1, for the following reasons:

Alpine Energy Limited

The price path threshold breach during the 2004 assessment period is fully explained by the difference in actual and budgeted pass-through costs;
the 2004 Notice required Alpine to set its prices so that its initial allowable revenue would not have breached the price path threshold at the second assessment date. This in effect required Alpine to set its prices so that the reduction in pass-through costs was passed on to its customers going forward;
the price path threshold breach at the 2006 assessment date is fully explained by the difference between actual and budgeted pass-through costs;
Alpine returned the amount of the 2006 price path threshold breach to customers;
the Commission concluded that Alpine’s breach of the 2004 quality threshold was predominantly explained by an extreme event;
the Commission review found Alpine’s network management and investment levels appeared to be satisfactory;
Alpine’s breach of its quality threshold during the 2006 assessment period is sufficiently minor, with only its SAIFI threshold being breached by 0.02 interruptions (1.8%), to take no further action; and
the Commission has no other section 57E concerns.

Aurora Energy Limited

The price path threshold breach during the 2004 assessment period is fully explained by the difference in actual and budgeted pass-through costs;
Aurora reduced its average price in line with the objective of the 2004 price path threshold;
the 2004 Notice required Aurora to set its prices so that its initial allowable revenue would not have breached the price path threshold at the second assessment date. This in effect required Aurora to set its prices so that the reduction in pass-through costs was passed on to its customers going forward; and
the Commission has no other section 57E concerns.