Proposed changes to the default distributor agreement

We are seeking feedback on four proposed clauses to improve the default distributor agreement (DDA).

The proposed changes are to:

• revise DDA clause 9.10 (Reduction of charges due to electricity supply interruption) to align the Authority’s approach with the regime in Part 4 of the Commerce Act. This is so distributors are not penalised twice through revenue reduction for both service interruption and under the quality incentive scheme.
• revise DDA clause 33.2 (definition of ‘use of money adjustment’) to reduce potential implementation costs for distributors through simplifying interest calculations and dates around invoicing.
• create a new Code clause 12.6A (Retailers must pass-through reduction in distribution charges) to require retailers to pass-through electricity supply interruption charge reductions to consumers.
• create a new DDA clause 9.11 (Reduction of charges due to state of emergency) to reduce distribution charges in states of emergency where a consumer can’t access electricity and have sought disconnection but their supply can’t be disconnected.

These four proposals aim to reduce distribution charges to consumers for periods of electricity supply interruptions, including during national emergencies, and ensure these reductions are passed on to consumers. They also simplify provisions relating to use of money adjustments.

This consultation is a follow-up to the consultation last year on a broader range of proposals to improve the DDA and consumption data templates.

We welcome submissions by 5pm on Wednesday 31 July 2024. Feedback on these four proposed changes will inform the Authority’s final decisions and help ensure they are workable for distributors and retailers, and deliver benefits to consumers.