Orion has today submitted its application to the Commerce Commission for a customised price-quality path (CPP). We are seeking approval for a five-year investment plan to support a safe, reliable, resilient and future-ready electricity network for Canterbury.
The application reflects the challenges and opportunities facing Orion’s network, including ageing assets, fast population growth in Selwyn and Christchurch, increasing electrification, and the need to prepare for more frequent severe weather events and other disruptions.
The CPP process allows electricity distributors to apply for a more tailored regulatory path when the default price-quality path (DPP) does not provide enough revenue to meet the specific needs of their customers and network. The Commerce Commission will now check Orion’s application for compliance and assess our proposal before making a final decision.
We’ve applied for a customised price-quality path for the period between 1 April 2027 and 31 March 2032. Over this five-year CPP period, we plan to invest a total of $1.51 billion in the electricity network, comprising $932 million in capital expenditure and $578 million in operating expenditure. This is around $260 million more than under a DPP.
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. Alongside this, we will continue to explore non-network solutions to help manage demand and support efficient network operation.
“What we decide about our electricity network now will shape the lives of the people who live and work here for decades to come,” says The Orion Group Chief Executive Nigel Barbour.
“We’ve developed this plan to carefully manage risk, keep the power on, and balance cost with the level of service our customers expect, while making the investment needed for a growing region and a changing energy future.”
Customer and stakeholder feedback has helped inform the proposal, with safety, reliability, resilience and affordability remaining key priorities in the investment plan.
Find out more about our customised price-quality path application.