Updates to distribution pricing reform

In May 2024 the Electricity Authority Te Mana Hiko will provide an update on its work planned to address the five issues set out in our issues paper on the targeted reform of distribution pricing. The five issues were:

• Peak period price signals - prices that signal the cost of network use at periods of high demand
• Off-peak price signals - prices that do not distort network use during off-peak periods
• Target revenue allocation - efficient allocation of shared costs between consumer groups
• Connection pricing - consistent and efficient connection pricing (capital contributions)
• Retailer response - retailers’ response to distribution pricing signals

The regulatory options considered for each of these issues included continuation, control and call-in.

We will provide an update on this work via our website and Market Brief newsletter in May.

Issues paper - Targeted reform of distribution pricing