Things you've asked about
- Some investment has been deferred over time - some maintenance and asset replacement activities were delayed following the earthquakes and during periods of strong growth to help manage price impacts on customers.
- Parts of the network are ageing – increased asset renewals are required to maintain reliability and reduce the risk of outages.
- The network faces ongoing risks - seismic risk and more frequent severe weather mean we need to improve resilience.
- Demand is growing - population growth and growth in the demand for electricity mean we need to expand and strengthen the network.
- Energy use is changing - more solar, batteries, and new technologies are increasing complexity and require updated systems to efficiently manage the network.
- Opportunities to improve efficiency – improvements to systems and tools will support more effective network management, better investment decisions, and faster power restoration.
Why do we need a customised price-quality path?
A customised pathway allows us to plan and deliver the investment needed to keep the electricity network safe, reliable, resilient, and ready for the future. Increased investment in the network is required because:
Why do you need to do this now?
If we didn’t apply for a customised path and increase investment, important work would need to be delayed. This includes renewing ageing assets and delivering improvements that support long-term reliability and customer needs. Over time, this would increase the risk of outages and limit the network’s ability to keep up with growth and change. It could also lead to higher costs in the future.
How much are you planning to invest?
Over the five-year CPP period, we plan to invest a total of $1.51 billion, comprising $932 million in capital expenditure and $578 million in operating expenditure. Note, the Commerce Commission will determine our final investment plan after evaluating our CPP application.
Our capital expenditure focuses on increased asset renewals, targeted resilience programmes, and network upgrades to keep pace with forecast growth in population and peak demand. The increase in operating expenditure will support increased maintenance activity, expanded vegetation management, and enhanced capability to manage a more complex and dynamic electricity network.
These investments are focused on maintaining service levels while positioning the network to meet future needs.
What does a customised price-path mean for customers?
The benefits of increased investment in the network include sustained levels of safety and reliability, a more resilient network, increased network capacity to support growth, and a network that is future-fit and continues to support the decarbonisation of our region. Investing in the network now, means we can avoid even higher costs in the future from deferred investment, and ensure we can continue to provide the safe, reliable and resilient network our customers rely on.
How much will prices rise?
How much will prices rise for customers under a customised path?
As a customer’s electricity bill reflects the cost of all parts of the electricity supply chain, and electricity retailers determine how lines charges are included in their bill, we cannot accurately forecast total customer bills as a result of our investment plan. However, we expect that the lines charge increase for typical residential or small business customers will be on average around $4 per month higher under a customised price-quality path.
When will the price rises start to appear on customer's power bills?
Our customised pathway will be reflected in customer’s power bills from 01 April 2027.
Did you consult with customers?
Yes, between August 2024 and April 2026, we engaged with customers, stakeholders and the community to ensure the proposed investment plan reflects their needs and priorities. Feedback was clear and consistent: customers expect a network that is safe, reliable, and resilient, can accommodate growth, and is fit for the future. Affordability was also identified as a key concern, with an expectation that investment is prudent, efficient, and clearly justified.
Customer feedback has directly informed the investment plan, including adjustments to scope, timing, and trade-offs. This input has contributed to an overall reduction in planned investment, helping to reduce future cost increases while maintaining focus on the safe, reliable and resilient service valued by customers.