Commission finalises Chorus’ starting RAB

STOCK EXCHANGE ANNOUNCEMENT
6 October 2022

Commission finalises Chorus’ starting RAB

The Commerce Commission has today issued its final determination on Chorus’
starting regulated asset base (RAB).
The final decision updates the Commission’s draft starting RAB with lower than
forecast actual spending over the 18 months to 31 December 2021. The expected
effect of this update was communicated to the market in June.
The Commission has also increased the allocation of central office space which
increases the RAB by $67 million. We welcome this improvement over the
Commission’s initial decision to allow only 50 percent of the allocation of capital
expenditure in central office space. The final decision better reflects the costs
Chorus incurred to provide fibre services.
The net effect of these changes is a $12 million reduction from the draft starting
RAB announced in December 2021.

Commerce
Commission draft
starting RAB
(16 Dec 2021)

Chorus market
update
(10 June 2022)
Commerce
Commission final
starting RAB
(6 October 2022)
Core RAB

$4.034 billion $3.969 billion $3.997 billion
Financial Loss
Asset
$1.391 billion $1.377 billion $1.416 billion
TOTAL RAB $5.425 billion $5.346 billion $5.413 billion

The change in starting RAB does not affect Chorus’ maximum allowable revenue
for the first regulatory period (2022 to 2024) and will instead be included as a
wash-up for the second regulatory period beginning in 2025.





Chorus

Limited

Level 10, 1 Willis

Street

P O Box

632

Wellington
New

Zealand


Email:

company.secretary@chorus.co.nz

Authorised by:
Andrew Carroll
Chief Financial Officer (acting)

ENDS

For further information:
Brett Jackson Investor Relations Manager
Phone: +64 4 896 4039
Mobile: +64 (27) 488 7808
Email: Brett.Jackson@chorus.co.nz

Steve Pettigrew
Head of External Communications
Mobile: +64 27 258 6257
Email: steve.pettigrew@chorus.co.nz