Debt Investor Presentation November 2019
Overview of current RAB implementation
The Commerce Commission is implementing the new framework
On 19 November, the Commerce Commission released its
draft Input Methodologies decision, following extensive
submissions from Chorus and investors. Key changes
from the Commission's 'emerging views' paper published
in May were:
Higher WACC following an upward revision of:
Indicative fibre regulation timeline
June 2020
Input methodologies
final decision due
(the "rule book")
ā
the asset beta from 0.46 to 0.49; and
Q4 2020
Draft price-quality path
Market Risk Premium from 7% to 7.5% (applicable
after 2020)
Q2 2021
Tax losses to be carried forward to implementation
date
Final price-quality path
(sets the revenue and RAB)
More favourable treatment of Crown financing
The Input Methodologies are expected to be finalised by
mid 2020, followed by Price-Quality decisions in mid
2021.
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November 2019
DEBT INVESTOR PRESENTATION
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