Authority improves transmission pricing methodology to facilitate new and emerging technologies

The Electricity Authority Te Mana Hiko is making changes to the transmission pricing methodology to create a more level playing field for emerging energy storage technologies, like grid-scale batteries, connecting to the grid.

While many new energy storage technologies were still just emerging at the time the Authority developed the new transmission pricing methodology, the methodology was designed with flexibility in mind. This reflects the Authority’s shift to become more agile and ensure regulation enables and supports our changing energy system.

Battery energy storage systems and other technologies have the potential to provide significant consumer benefits through improving network resilience and security of supply.

Earlier this year the Authority identified an issue in the way charges are allocated that causes disproportionately higher charges for new energy storage technologies compared to other types of connections. This was a concern, because battery energy storage systems and other technologies have potential to provide significant consumer benefits by improving network resilience and security of supply.

It's important that the rules enable participants to invest to improve network resilience and security of supply as more intermittent renewables come online. So in August we consulted on amendments to the TPM to change how these charges are allocated and create a level playing field for connecting these new technologies to the grid.

We’ve now decided to progress these changes (effective 1 April 2026) to better allocate connection charges for shared connection assets and make residual charges more consistent across grid customers.

Read our decision paper

About transmission pricing methodology