New Zealand Gazette – 2008 – No. 95

Page 2552

✨ Electricity Distribution Price Path Breach Decisions



2552 NEW ZEALAND GAZETTE, No. 95 6 JUNE 2008

  • if Nelson Electricity had passed on the higher transmission charges when
    they came into effect, it would not have breached the price path threshold;

  • as Nelson Electricity delayed passing on the increase in transmission
    charges, it, rather than its customers, absorbed these costs. Accordingly,
    Nelson Electricity’s 2003 price path breach caused no detriment to
    customers; and

  • the Commission has no other section 57E concerns.

Network Tasman Limited

  • The majority of the breach is explained by differences between budgeted
    and actual transmission costs;

  • Network Tasman returned the amount of the 2006 price path breach to
    customers through discounts in August and September 2006; and

  • the Commission has no other section 57E concerns.

Network Waitaki Limited

  • Network Waitaki’s breach of the price path threshold at the 2003
    assessment date can be fully explained by difference between the
    budgeted and actual transmission costs;

  • by not increasing its average price during the 2003 assessment period,
    Network Waitaki was acting in accordance with the objective of the 2003
    price path threshold;

  • the Commission has no other section 57E concerns.

Northpower Limited

  • The 2006 price path breach was caused by an anomaly in clause 5(1)(b) of
    the 2004 Notice;

  • if Northpower’s 2006 price is tested under the revised clause 5(1)(b) of
    the 2006 Notice, then it would not have exceeded its 2006 price path
    threshold; and

  • the Commission has no other section 57E concerns.

Orion New Zealand Limited

  • The 2004 price path breach was caused by differences between budgeted
    and actual pass-through costs;

  • by not increasing its average price during the 2004 assessment period,
    Orion was acting in accordance with the objective of the 2004 price path
    threshold;

  • the 2004 Notice required Orion 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 Orion to set its prices so that the



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 95


Gazette.govt.nz — PDF NZ Gazette 2008, No 95




✨ LLM interpretation of page content

🏭 Decision Not to Declare Control of Electricity Distribution Businesses (continued from previous page)

🏭 Trade, Customs & Industry
Electricity Distribution, Price Path Breach, Transmission Costs, Regulatory Compliance

🏭 Network Tasman Limited Price Path Breach Assessment

🏭 Trade, Customs & Industry
Electricity Distribution, Price Path Breach, Transmission Costs, Regulatory Compliance, Network Tasman Limited

🏭 Network Waitaki Limited Price Path Breach Assessment

🏭 Trade, Customs & Industry
Electricity Distribution, Price Path Breach, Transmission Costs, Regulatory Compliance, Network Waitaki Limited

🏭 Northpower Limited Price Path Breach Assessment

🏭 Trade, Customs & Industry
Electricity Distribution, Price Path Breach, Regulatory Compliance, Northpower Limited

🏭 Orion New Zealand Limited Price Path Breach Assessment

🏭 Trade, Customs & Industry
Electricity Distribution, Price Path Breach, Pass-Through Costs, Regulatory Compliance, Orion New Zealand Limited