Revenue is controlled using regulatory control periods. Our second control period (RCP2) runs for five years from 2015/16 to 2019/20.
Every year the Commerce Commission updates our Maximum Allowable Revenue number (MAR) for the current Control Period. The revenue number that we use to set prices is based on our MAR plus some adjustments, for example to include voluntary revenue reductions and to add pass-through and recoverable costs. The table below shows our forecast transmission revenue for this Control Period (RCP2, ending in 2019/20), plus our current forecast of revenue in RCP3 (ending in 2024/25). These figures were updated in November 2016 and will be updated gain in July 2017 and November 2017.
Our Network Performance incentives will give rise to adjustments to our revenue of plus or minus $15.7m every year. The forecast below assumes that our Network Performance is on target every year – i.e. there is no resulting adjustment to revenue.
RCP2 revenue path
This is our transmission revenue path for Regulatory Control Period (RCP2).
RCP3 revenue path