NZ Commerce Commission sets Chorus' fibre price-quality path for 2025-2028
New Zealand's Commerce Commission announced its final decision on the price-quality path for Chorus' (ASX:CNU) second regulatory period for fibre, covering the years 2025-2028.
The decision outlines annual revenues ranging from NZ$957 million to NZ$1.08 billion ($866.7 million to $978.1 million), including pass-through costs and wash-ups.
The decision is informed by the Commission's final expenditure allowances decision from August, alongside updated inputs from Chorus' 2023 information disclosure.
Notable aspects include tilted annuity depreciation of core fibre assets, aimed at managing the wash-up balance in line with Chorus' suggestions, and a vanilla weighted average cost of capital of 7.68%.
Chorus will closely examine the detailed aspects of the decision to ensure all settings are practical and effective for the upcoming regulatory period.
Julian Kersey, Chief Corporate and Regulatory Officer of Chorus, commented, "This decision marks the end of a multi-year process involving substantial effort from both Chorus and the Commission."
"Chorus thanks the Commission for its engagement and welcomes the certainty that the final decision provides in terms of expenditure allowances and allowable revenues for the next four years," Kersey added.
Chorus is a New Zealand-based fixed line communications infrastructure business. The company maintains and builds a network made up of fibre and copper cables, local telephone exchanges and cabinets.
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