We have had some feedback from you regarding the way the ‘fibre growth condition’ is working. We are making changes to this condition from July 2024 where, if the condition is not met, an RSP will still receive 2/3 (67% for purposes of calculation) of their incentive credits for an applicable month i.e. in effect only 1/3 of credit will be at risk each month.

This change will come into effect for July (i.e. incentives earned in July paid in August) through to the end of September 2024.

The primary objective of incentives is to drive (and reward) fibre connection growth. To support the overall fire growth objective, in January we introduced a condition that required an RSP to grow its Chorus fibre connections to be eligible for Pure Fibre incentives for that month.  

Since the introduction of this condition, we acknowledge that there have been some unforeseen scenarios, which we have responded to by introducing changes (tolerance and the three-month-rolling average option) mitigating some of the impact of the condition - these remain applicable. Whilst it is our intention to maintain the intent of the net fibre growth condition, we have used the feedback from the recent consultation to make the following additional change.

The Fibre Growth condition will be maintained in order to get 100% credit payment, however an RSP will always receive at least 2/3 of their credit payment i.e. if an RSP does not meet the growth condition, the RSP will receive 67% of the value of credits accrued.

Example:

If an RSP activity has generated $1,000 of Pure Fibre credits for a month, they will receive:

• $1,000 if their Chorus fibre base has grown for that month
• $667 if their Chorus fibre base has not grown for that month  

This change is to be implemented immediately for incentives earned in July (payable August) through to September 2024. It is intended that there will be a similar approach of a partial allocation applied going forward in Q2 and beyond, although the exact mechanism is still to be determined as part of the new incentives framework).  

Contact

Please contact your account team if you have further queries.