Tuesday, 30th March, 2021
The Commerce Commission has released its final decision on Aurora Energy’s (Aurora) proposal to fix its electricity lines network in Dunedin, Central Otago, and Queenstown Lakes.
It has decided that Aurora can spend a maximum of $563 million over the next five years to replace failing infrastructure and run its network. This is a reduction of $46 million (7.5%) on what Aurora proposed.
To help mitigate the impact of increased bills ComCom has capped Aurora’s annual revenue increases at a level approximately 10% per year.
"While this decision substantially reduces the impact of increased bills compared to Aurora’s proposal, we are conscious that the impact on electricity bills will still be significant.
We have also set targets for power outages and interruptions on Aurora’s network at levels that reflect its actual performance over the past five years. Overall, this should see reliability of supply stabilise at current levels before gradually improving over time.
We recognise the depth of feeling held by consumers about the position the business is in and the impact on bills this extra spending will have. Aurora has nevertheless made its case for urgent and ongoing investment to replace old and failing assets in its network. Without it, the network will continue to deteriorate, safety incidents will increase and its customers will experience more frequent and longer outages."
The documents released today on our decision are set out below.
- Consumer Summary paper – “Summary of our proposed response to Aurora’s investment plan”
- Key decisions infographic – “Key decisions on Aurora’s plan”
- Final decision - Aurora Energy's proposal to customise its prices and quality standards – 31 March 2021
- Aurora Energy Limited Electricity Distribution Customised Price-Quality Path Determination 2021 (with IM variations)  NZCC 3
- What we heard infographic – “What we heard – consumer feedback summary”
- Questions from Commission to Aurora Q001 - Q091 – 31 March 2021
- Strata Report - Report on specific submission topics related to Aurora Energy's CPP application - 12 March 2021
- Aurora CPP Financial model with Commerce Commission adjustments – 31 March 2021
- Aurora CPP inputs model with Commerce Commission adjustments – 31 March 2021
- Aurora CPP expenditure model with Commerce Commission adjustments – 31 March 2021
- Presentation to stakeholders on Aurora CPP final decision – 31 March 2021
These documents are available on our website here.