Unison Network Limited is set for an increase in its revenue limit to cover the $7.3 million cost of connecting its
local electricity network to Contact Energy Limited’s Tauhara geothermal plant, after the project was found to meet
criteria established by the Commerce Commission.
Unison is responsible for the local electricity lines network in the Hawke’s Bay, Rotorua and Taupo regions. The
Commission sets five-year revenue limits and reliability standards for Unison and 15 other electricity lines companies
that operate in different regional areas.
In November 2019, the Commission set Unison’s revenue limit through to March 2025. Up until that date, the revenue limit
may only be adjusted in certain specified circumstances. Unison applied to the Commission on the basis that its project
met the criteria for an ‘unforeseeable major capital expenditure project’, which is one of the specified circumstances.
The project will supply electricity to support Contact’s construction of the 150-megawatt Tauhara power plant, and
subsequently provide a permanent supply from Unison’s network for operating the power plant once it is commissioned in
mid-2023. Transpower’s national grid will transport the renewable electricity the geothermal power plant generates to
supply consumers.
In December 2021, after reviewing Unison’s application, the Commission consulted on a draft decision that proposed the
application be approved. The Commission considered that when it set Unison’s revenue limit in 2019, there was
insufficient certainty about the timing of construction of the Tauhara power plant and whether it would be supplied by
Unison’s network.
In making its final decision, the Commission considered submissions on its draft decision and was satisfied that
Unison's application met the criteria. The regime is designed to accommodate some change in circumstances to promote the
long-term benefit of consumers, and this has helped a renewable energy project like Tauhara power plant move forward.
The Commission issued its final decision on 4 March 2022.