Economic regulation of the electricity distribution industry is two-fold:

  • A price-quality path that caps the prices Powerco can charge and provides a minimum level of reliability of electricity
  • An annual information disclosure regime

Price and Service Levels

Part 4 of the Commerce Act mandates that the Commerce Commission regulates the price and quality of goods and services in markets where there is little or no competition and little or no likelihood of a substantial increase in competition. This is known as price-quality regulation. Electricity Distribution Businesses (EDBs) like Powerco that are not consumer owned, are subject to price-quality regulation.

These EDBs are known as non-exempt EDBs. There are two types of price-quality regulation relevant to non-exempt EDBs - default price-quality paths (DPP) and customised price-quality paths (CPP). Both set revenue limits and minimum standards for quality of service.

All EDBs initially start on a default path, which is a largely generic and relatively low cost approach. If a business believes the default path does not meet its needs, particularly in terms of future investment requirements, it can apply for a customised path. A CPP is tailored to the company's specific plans and requires in‐depth analysis, audit, verification, and evaluation of the EDBs proposals.

From 1 April 2018 to 31 March 2023 Powerco will be regulated under a CPP. Under the CPP, Powerco must follow the revenue path and quality standards specified by the Commission. Powerco must meet three independent quality standards for planned and unplanned outages:

  • Planned interruptions – annual limit
  • Unplanned interruptions – annual limit
  • Planned interruptions – cumulative 5-year limit

Non-standard Contract Disclosure

Each year, Powerco discloses both the new non-standard contracts it has entered into for the provision of electricity lines services, and existing non-standard contracts where the prescribed terms and conditions have been modified during the period.

A contract is considered non-standard if:

(a) The price at which the electricity line services are to be provided is not determined solely by reference to a schedule of prescribed terms and conditions that is publicly disclosed; and

(b) fewer than five people have such contracts with Powerco.

Electricity Contribution Guide

If your home or business connects, or wants to connect, to Powerco’s electricity distribution network, we may require you to contribute to some costs towards the design and installation of the electricity assets.  This payment is called a capital contribution or a customer contribution. This guide outlines when you may be required to contribute, the process that is followed and how the amount is calculated.

Valuation Report

2004 ODV Report

Participant Rolling Outage Plan