The Commerce Commission has recently accepted applications from Wellington Electricity and Powerco to go on customised price-quality paths (CPPs), allowing new revenue limits to be set for these electricity distribution businesses. After processing the two applications, the Commission published an open letter seeking feedback on the CPP decision-making process.

TDB worked with the Electricity Retailers Association of NZ (ERANZ) to submit on the need for cost-benefit analysis (CBA) to be incorporated into future CPP applications. CBA is an internationally recognised means of assisting major investment decision making. CBA would permit the consumer benefits achieved through increased investment to be quantified and assessed against the counterfactual of no additional investment in a rigorous way. The Commission is already using CBA to assess significant Transpower projects and TDB believe it would be a valuable addition to the CPP-assessment process for EDBs. Read the full submission below.