Update on reforming regulatory settings for distribution networks

Distribution networks have a key role to play in ensuring that consumers can access a mix of renewable generation, storage and technologies to control their energy use and reduce their costs.

Updating the regulatory settings for distribution networks is a key priority for the Electricity Authority Te Mana Hiko. It aims to give consumers confidence that distribution networks are able to support the way they want to access and use electricity. It will enable new technologies and allow consumers to increasingly choose if and how they participate in electricity markets, now and in the future.

The project is progressing well. In late 2023, we published our indicative work programme with an outline of timeframes and deliverables. Below are some key highlights of what has been released and produced so far:

• The Network Connections Technical Group has met three times this year and is working through non-price barriers to network connections.
• We released updated Guidelines on Code exemptions to support industry trials. These provide guidance for potential applicants who might have a new idea or innovation which can’t be trialled within the existing regulatory environment. We’re particularly keen to facilitate industry trials that could lead to positive long-term outcomes for consumers.
• We are consulting on our Code amendment omnibus #3, which includes proposals to increase the level and depth of information about distributed generation at a network connection. This will increase visibility of distributed generation and support investment decisions, ultimately empowering consumers to take advantage of distributed generation. In addition, we’re proposing to assist distributors process the increasing number of distributed generation applications through an increase to the maximum fee level for processing connection applications. This will make connections more efficient and timely for consumers.
• We have released Draft guidance on distributor involvement in the flexibility services market. The guidance will support the development of a competitive flexibility services market, which will in turn promote efficient investment in, and the uptake of, distributed energy resources.

About updating regulatory settings for distribution networks