Feedback welcomed on faster, simpler electricity connections

The Authority’s Network Pricing Director Tim Sparks says: "Lines companies are monopoly providers and there is effectively no constraint on connection pricing. We want to make it easier and faster to connect to electricity networks and to start to rebalance pricing methodologies across the country. Currently connection pricing and processes vary across the country’s 29 lines companies, making it more expensive to connect new homes and businesses in some areas. This directly impacts consumers and hinders electrification of our economy."

The Authority is not proposing a drop in pricing in its current proposals but looking to prevent lines companies from raising their connection prices further. The direct impact on consumers will vary but all consumers will benefit from lower power costs over time as Aotearoa New Zealand electrifies. As an example, the Authority estimates that a typical residential customer on Vector’s network in Auckland would pay $0.71 more per month after 2026, when the proposed pricing limits would apply.

The proposals fully align with the recently released Government Policy Statement, which calls for network connections to enable efficient investment in new electricity use, including electrifying transport and process heat in industry.

"We have been inviting input and feedback from the lines companies across the country on these changes. We are pleased that some have taken up the opportunity to meet with us to discuss their feedback and input," said Tim Sparks.

"Because of the complexity of the issues across the 29 lines companies, we have received requests from market participants for more time to respond, so we have extended the consultation period to eight weeks. We hope this will also support organisations interested in connecting to the electricity network and consumers to have their say."

Submissions are now due by 5pm on Friday 20 December. We will publish submissions on Monday 23 December to allow for cross-submissions. The period for cross-submissions will close at 5pm, Friday 24 January 2025.

The Authority also welcomes verbal submissions during the consultation period. These can be provided direct to the Authority and are part of making it easier for New Zealanders to engage in our work.

Distribution connection pricing proposed Code amendment consultation paper

Network connections project - stage one consultation paper

For any questions, please get in touch with the team at connection.feedback@ea.govt.nz