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Letter from Commerce Commission to ENA re WACC and inflation

  • Updated February 14, 2025

Letter to ENA about ENA's concerns with the weighted average cost of capital (WACC) estimates and Consumer Price Index (CPI) forecasts. The ENA claims WACC is unrealistically low, and the CPI forecast biases lead to greater downside risks, prompting a review request before the final determination of the third default price-quality path (DPP3).

Letter to Commerce Commission re unsustainable WACC estimate for DPP3

  • Updated February 14, 2025

ENA letter to the Commerce Commission about concerns regarding the Weighted Average Cost of Capital (WACC) for the upcoming regulatory period. The submission highlights issues with an unsustainably low WACC estimate and biases in CPI forecasts, both of which may impede necessary investment by electricity distribution businesses.