In the lead-up to the commencement of the third regulatory control period (the five-year period commencing 1 July 2009), the Code requires the Commission as regulator - in consultation with interested parties - to review the price regulation methodology used in the previous regulatory control period with a view to modifying the methodology as appropriate. The Commission refers to this review and consideration of the price regulation methodology to apply from 1 July 2009 as the '2009 Regulatory Reset'.

On 31 March 2009, and in accordance with clause 66(1) of the Electricity Networks (Third Party Access) Code, the Commission released its determination regarding the prices to be charged for access to prescribed electricity networks operated by the Power and Water Corporation during the five-year period commencing 1 July 2009.

Consultation on the 2009 Regulatory Reset

Issues Paper

In October 2007 the Commission released an Issues Paper which was designed to identify the key issues within the scope of the reset and to invite submissions on these issues.

The Commission received submissions  from three interested parties:

Price Control Mechanism Decision

The following documents relate to the price control mechanism. The Commission made its final decision on the Price Control Mechanism on 2 May 2008. The price control mechanism involves the practical and technical detail for the administration of network price regulation over which the Commission as regulator (in consultation with stakeholders) has a degree of discretion.

Network Services Classification

On 24 July 2008, the Commission approved the network services classification proposed by Power and Water for the third regulatory period as an interim approval.  The final network services classification for the third regulatory period formed part of the Commission’s 2009 Regulatory Reset Final Determination.

Po adjustment model

On 30 June 2008, the Commission released the Po adjustment model version 2, in response to representation made by Power and Water Corporation.

The Commission’s Po adjustment model sets out the manner in which Power and Water Corporation’s efficient costs of supplying standard control services in a single regulatory year are to be calculated. As part of its regulatory proposal, Power and Water Corporation was required to submit to the Commission a proposed Po adjustment factor calculated using the Commission’s Po adjustment model.

Initial Regulatory Proposal

On 22 August 2008, and as required by the Final Methodology Decision, Power and Water Corporation submitted its initial regulatory proposal to the Commission for the third regulatory period covering all of Power and Water Corporation’s regulated networks.

The Commission received two submission on the Initial Draft Determination:

Draft Determination

 

On 1 December 2008, the Commission released its Draft Determination on whether or not it proposes to approve Power and Water Corporation’s initial regulatory proposal and, if not, what revisions it proposes to require before a revised regulatory proposal could be approved by the Commission. The Draft Determination reflected the Commission's consideration of issues raised in submissions on the Initial Draft Determination. This Draft Determination was published in conjunction with the recommendations from the Commission's advisers and a revised Po adjustment model:

Revised Regulatory Proposal

On 31 January 2009, and as required by the Draft Determination, Power and Water Corporation submitted its revised regulatory proposal to the Commission for the third regulatory period covering all of Power and Water Corporation’s regulated network: