Infrastructure Pricing
Review of airport landing fees
Evaluation for Freightways and New Zealand Post of aeronautical pricing proposals by Christchurch International Airport (2022) and Palmerston North Airport (2019) Freightways and New Zealand Post engaged Link Economics to review Christchurch International Airport Limited (CIAL’s) aeronautical pricing proposal for the five-year period commencing July 2022. Link Economics reviewed and provided feedback on CIAL’s five-year…
Read MoreConsumer electricity bill impact assessment
Analysis for the Electricity Networks Association of the bill impact of distribution pricing reform on consumers, 2019-2020 The NZ Government was considering a phase-out of the Low Fixed Charge (LFC) Regulations. Link Economics built a pricing model to examine price transition options. Using detailed data provided by ten electricity distribution networks, we estimated consumer bill…
Read MoreCost allocation study for the Electricity Networks Association
Review of cost allocation methodologies in New Zealand, Australia and the UK for the Electricity Networks Association (ENA), 2019 The 2019 Electricity Pricing Review highlighted that cost allocations used by distribution network businesses may need to be reconsidered. The ENA engaged Link Economics to review existing cost allocations and compare these to methodologies used in…
Read MorePostal network access pricing
Evaluation of the access pricing methodology for a new postal product, 2018 Postal network access prices in New Zealand have been set using the Efficient Component Pricing Rule (ECPR). Until 2019 the Postal Network Access Committee (PNAC) set the terms of access. In 2018, NZ Post introduced a new bulk mail product that provided a…
Read MoreEstimation of Long Run Marginal Cost
Long Run Marginal Cost estimation for an electricity distributor, 2022-23 The Electricity Authority has encouraged electricity distribution businesses in New Zealand to set prices that reflect economic cost. To assist with developing cost-reflective price signals, a network engaged Link Economics to prepare a Long Run Marginal Cost (LRMC) model and estimates. We reviewed relevant economic…
Read MoreInternational comparisons of wholesale broadband prices
Preparation for Telstra Corporation of international comparisons of wholesale broadband prices, Australia, 2019-2022 In 2019, Telstra engaged Link Economics to prepare an international comparison of wholesale broadband prices, including Fibre-to the-Premise (FTTP), Fibre-to-the-Node (FTTN) and Hybrid Fibre Coax (HFC). In preparing the study, Link Economics researched regulatory approaches, wholesale product specifications, and the structures and…
Read MorePricing methodology regulatory disclosures for electricity networks
Preparing electricity distribution pricing methodology and pricing roadmap regulatory disclosures, 2019 Electricity networks in New Zealand must disclose a pricing methodology document each year that explains how they set their prices. The pricing methodology describes how the network determines its revenue requirement, how it allocates the revenue to customer load groups, the pricing structure that…
Read More