Distribution connection pricing proposed Code amendment

We’re seeking feedback on a package of proposals that aim to make significant progress towards efficient connection pricing.

We’re taking a phased approach to regulating efficient pricing methodologies, and the proposals in this consultation paper represent the Authority’s first step.

In this consultation, we’re seeking feedback on proposed changes to pricing methodologies and mechanisms to support implementation. This package of proposed changes aims to:

• allocate costs for enhancement and network capacity efficiently
• rebate parties who fund network extensions
• improve transparency
• improve negotiations
• safeguard against distributors increasing their reliance on up-front charges
• facilitate price-quality path reviews.

The Authority is open to potential solutions to the problems we are addressing with our proposals, and we welcome alternative suggestions on how to progress towards more efficient connection pricing methodologies.

We held a one-hour webinar on Monday 11 November 2024 to talk through the proposals in this consultation paper and answer questions. The webinar included a presentation about the complementary Network connections project - Stage one consultation with proposals about the application process for new and enlarged connections. Watch the webinar.

Alongside this consultation, we welcome your feedback in the Network connections project – Stage one consultation.

This consultation runs over the same time period and aims improve the efficiency of the application processes for connecting to the network, or upgrading an existing connection.

Together, the proposals across these consultations aim to support more efficient investment in infrastructure and businesses, and in distribution networks.