Price Path contravention

Price Path contravention

Eastland Network is the supplier of electricity lines services across Gisborne, Wairoa and the East Coast. It is subject to regulation under Part 4 of the Commerce Act 1986, including the Price Path imposed on it under section 52P.

For the year ending 31 March 2020, Eastland Network mistakenly included pass-through prices in the calculation for certain tariff codes, leading to incorrect understatement of its notional revenue. This meant it exceeded its allowable notional revenue and therefore contravened the Price Path for that year.

Following an investigation into the contravention, the Commerce Commission decided that the most expedient mechanism for returning the overcharge and providing compensation to consumers was for Eastland Network to give a rebate to customers via electricity retailers.

The rebate was determined by what pricing tariff the consumer was on for the last day of the 2020 Assessment Period. Below are the rebates for the impacted connections and the 2019-20 pricing tariff code.

Eastland Network instructed the electricity retailers by the end of September, and they will have 45 working days to pass these onto consumers.

In addition, Eastland Network has engaged PwC to carry out a review of price-setting processes. This independent report, and details of actions Eastland Network will take in response, will be published on our website.