Upcoming consultations to improve network connection processes and connection pricing

As New Zealand’s economy electrifies, industrial consumers, developers and electricity generators are increasingly seeking connections directly to distribution networks.

This places higher and more complex demands on our networks and we need future-ready regulations that better serve consumers, distribution businesses and those wanting to connect to networks.

The Electricity Authority envisions a future where connecting to the network is efficient, practical and helps New Zealand speed towards realising the benefits of greater electrification.

And so later this month, we intend to (subject to Board approval) release two consultation papers with proposed regulatory changes that bring us closer to this by addressing some known barriers and providing greater clarity and consistency to network connection processes and efficient pricing.

We think getting the right regulations in place will encourage more investment in important infrastructure – like public EV chargers and solar farms – and better help larger energy users to switch from fossil fuels to an electric alternative.

The two consultation papers are:

• Network connections project – Stage one, which aims to make it easier, faster, more equitable and more consistent for large-capacity load and distributed generation to connect to the distribution network.
  
• Distribution connection pricing proposed code amendment, which proposes a suite of ‘fast-tracked’ changes to make price methodologies for load access seekers more efficient and cost reflective. The package delivers significant early progress, while laying the foundation for further reform.

When combined, we think the proposals in these consultations will support more efficient investment in electric infrastructure by:

• promoting efficiency, competition and reliability
• improving investor confidence and decision-making
• encouraging consistent practices by distributors and others
• increasing uptake rates so developments can happen quicker.

Although the consultation papers will be separate, with each focusing on the pricing or non-pricing issues around network connections, we intend to release them at the same time so submitters can clearly see the broader set of changes being proposed.

These two consultations will each represent the first stage of reform in these two important areas.

Our work to improve regulations supporting network connections will impact many different parts of the sector, and we’re interested in hearing from a range of parties on both projects. We expect these consultations will open later this month.

Keep an eye out in our Market Brief newsletter and our website news over the next couple of weeks for more details on the two consultations.

About the network connections project