Statement on the Commerce Commission's proposed decision on Aurora's customised price-quality path
The Authority welcomes the release of the Commerce Commission’s consultation package responding to Aurora’s plans to fix its electricity lines network for the residents of Otago.
The Commerce Commission regulates distributors like Aurora, which is ultimately owned by the Dunedin City Council, to make sure they act appropriately given their monopoly position. The Commission sets Aurora’s minimum reliability levels, and the maximum revenue it can earn.
Aurora’s customers should be able to count on having a safe and reliable electricity supply. We encourage people in Aurora’s network to send their feedback on the proposed decision direct to the Commerce Commission to make sure their concerns are heard.
The details on how to provide feedback are on the Commerce Commission’s website. (external link)
Once the Commission has settled on how much revenue Aurora can earn, Aurora recovers this revenue from its customers. We have heard the concerns about Aurora’s regional pricing raised by some of Aurora’s customers, and the Authority is taking a deeper look to determine whether Aurora’s approach appropriately reflects the costs of its network. The Commission’s draft decision is another important input into that process.