"The figure for next year is in here, but after that it will depend on how much noise you make about Aurora's proposed price rises."
Oh
man, I swear to god the Commerce Commission is timing its information
releases just to do my head in. This morning they announced their final
figures for DPP3, the next five years of default pricing for line
companies.
Will that be what Aurora customers pay? No. The figure for next year is in here, but after that it will depend on how much noise you make about Aurora's proposed price rises. Let's take it step by step.
Pay attention, it's a bitch.
If you look at the larger of the two tables you will see a couple of columns labeled MAR. In commission speak that stands for maximum allowable revenue and it's loosely the total amount of money Aurora can charge us. Alarmingly it leaps by 30% in 2021. Fortunately there is another column labeled IRIS.
IRIS is the rolling incentive scheme or, in this case, disincentive scheme. Here the commission strips Aurora of more than $18m in revenue in the first year alone because of its massive blowout in operational expenses. Net result, an increase of $1.8m next year, so perhaps a couple of bucks a month on top of the existing line charges.
The good news is that the price rise on April 1st will be about a third of the rise that the commission originally proposed. The bad news is that none of that affects the price rises Aurora has announced it is applying for.
You'll have noticed that I've said bugger all about Aurora's proposals. Don't worry, I've blown away the smoke and smashed most of the mirrors, the truth is coming.
Will that be what Aurora customers pay? No. The figure for next year is in here, but after that it will depend on how much noise you make about Aurora's proposed price rises. Let's take it step by step.
Pay attention, it's a bitch.
If you look at the larger of the two tables you will see a couple of columns labeled MAR. In commission speak that stands for maximum allowable revenue and it's loosely the total amount of money Aurora can charge us. Alarmingly it leaps by 30% in 2021. Fortunately there is another column labeled IRIS.
IRIS is the rolling incentive scheme or, in this case, disincentive scheme. Here the commission strips Aurora of more than $18m in revenue in the first year alone because of its massive blowout in operational expenses. Net result, an increase of $1.8m next year, so perhaps a couple of bucks a month on top of the existing line charges.
The good news is that the price rise on April 1st will be about a third of the rise that the commission originally proposed. The bad news is that none of that affects the price rises Aurora has announced it is applying for.
You'll have noticed that I've said bugger all about Aurora's proposals. Don't worry, I've blown away the smoke and smashed most of the mirrors, the truth is coming.
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