The Commerce Commission has announced its final decision on the price-quality path for Chorus' second regulatory period for fibre, covering the years 2025 to 2028.
The decision sets out annual revenues for Chorus in the range of $957 million to $1.08 billion, including pass-through costs and wash-ups.
Key elements of the decision include the use of tilted annuity depreciation of core fibre assets, the draw-down of the PQP1 wash-up balance, the application of a wash-up of CPI in the first year of PQP2, the smoothing of the revenue profile, and the use of a vanilla WACC of 7.68%.
There will be no new quality standard for provisioning, but some adjustments were made to the existing quality standards for availability and performance.
Chorus said it will review the decision carefully to ensure all settings are workable.
See more
