Positive Progress On Restoring Aurora Energy’s Power Network, ComCom Says

The Commerce Commission has today reported that Aurora Energy Limited (Aurora) is making positive progress in addressing safety and reliability issues across its network.

Aurora, New Zealand’s seventh largest electricity distribution network by customer connections, is one year into a five-year Customised Price-Quality Path (CPP) which allows it to invest up to $563 million to address safety and reliability issues across its network.

In March 2021, the Commission allowed Aurora to recover increased spending needed to improve the reliability of its network. Aurora was placed on a CPP, rather than the Default Price-Quality Path (DPP) normally applying to electricity distribution businesses. As part of its obligations under the CPP, Aurora must disclose additional information to improve the visibility of its performance and accountability to its stakeholders, including customers.

The Commission’s General Manager of Infrastructure Regulation, Andy Burgess, says that the regulator’s role is typically to set the minimum quality standards and the maximum revenue for lines companies to ensure that consumers are not disadvantaged by a lack of competition. However, lines companies set their own strategies and allocate expenditure to meet the needs of their customers.

Aurora’s reporting for the year ended 31 March 2022 shows that it has complied with its statutory requirements since the CPP came into effect, says Mr Burgess.

“Reporting shows 65% of Aurora’s total capital expenditure in the first year, or $85 million, has been on assets and network improvements to enhance safety and reliability and prepare for increased demand from households and businesses.”

Mr Burgess says that Aurora still has some work to do in terms of its approach to customer communications – specifically notifying and updating customers on interruptions in a timely manner and complying with its customer charter.

“While we have seen Aurora demonstrating a commitment to engage with its customers and re-build trust, there were instances where it did not update customers in a timely manner when service was not restored following outages, and we want this to change.”

The Commission will continue to monitor and report on Aurora’s performance under the CPP during its term, 1 April 2021 to 31 March 2026.

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