• Allowable revenue range of $957 million to $1,080 million for 2025-2028
• Tilted annuity depreciation to avoid significant wash-up balance
• Draw-down of $195 million PQP1 wash-up balance within PQP2
• Smoothing of revenue profile

The Commerce Commission has released its final decision on the price-quality path for Chorus' second regulatory period for fibre (PQP2, 2025-2028). The final decision sets out annual revenues in the range of $957 million to $1,080 million (nominal), including pass-through costs and wash-ups. The final decision is based on the final expenditure allowances decision released in August and updated inputs from Chorus' CY23 information disclosure. Key elements of the decision include the use of tilted annuity depreciation of core fibre assets to avoid the build-up of a significant wash-up balance over PQP2, drawing down the PQP1 wash-up balance of $195 million within PQP2, updating settings so a wash-up of CPI also applies in year 1 of PQP2, smoothing of the revenue profile in the period, and the use of a vanilla WACC of 7.68%. There are no new quality standards for provisioning, with some adjustments to the existing quality standards for availability and performance.

The final decision sets out annual revenues in the range of $957 million to $1,080 million (nominal) for Chorus' second regulatory period for fibre (PQP2, 2025-2028).