Our projects
Enabling investment and innovation

Distribution pricing

We’re working on how to speed up distribution pricing reform to realise consumer benefits and facilitate an efficient transition to a low-emissions future.

  • Distribution
  • Prices

    • Overview

    We sent a letter to distributors in May 2024 outlining five new areas of focus for the Authority’s assessment of the 2025/26 pricing methodologies.

    You can read our update paper to understand our key next steps towards targeted distribution pricing reform. We want to see greater investment, innovation and transparency in the system.

    As part of this, we’re proposing pricing methodologies for connection charges for those looking to connect to distribution networks. A consultation paper is out now with a package of proposed Code changes.

    Timeline

    Past activity

    Project background

    The Electricity Authority is improving distribution pricing so it benefits all consumers. Distribution pricing is important as it affects how consumers use electricity, how distributors and others manage load, and when distributors invest in new or replacement poles and wires. It also affects the timing, level and location of investments in new technology, such as distributed energy resources like solar panels, electric vehicles and batteries.

    Distribution pricing is important as it affects how consumers use electricity, how distributors and others manage load, and when distributors invest in new or replacement poles and wires. It also affects the timing, level and location of investments in new technology, such as distributed energy resources like solar panels, electric vehicles and batteries, and businesses.

    Our work on distribution pricing is focused on supporting reform towards more efficient distribution pricing structures. Efficient distribution pricing can help:

    • reduce network upgrade and expansion costs
    • offer more flexibility for consumers
    • enable more flexibility in the electricity system, which can improve security of supply and energy resilience at a regional level
    • enable consumers to make smarter technology investment decisions
    • ensure New Zealand’s transition to an electrified economy is on the most efficient path.

    Moving towards more efficient connection prices is a key part of this work. We recognise that efficient connections to the distribution network are critical to enabling more efficient investment in infrastructure and businesses – such as industrial plants, public EV chargers, data centres and new housing developments – so it is delivered at least cost to consumers.

    And so the Authority envisions a future where connecting to the network is more efficient, practical and helps New Zealand speed towards realising the benefits of greater electrification.

    The Authority’s drive towards efficient distribution connection prices and processes aligns with the Government Policy Statement, released in October 2024.

    Other projects in Enabling investment and innovation
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    Improving visibility of generation investment

    Improving information on investments in new generation connecting to the transmission and distribution network.

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    Network connections

    Improving the efficiency of connecting to the distribution network and upgrading existing connections.

    View project

    Distribution connection pricing reform

    Improving connection pricing methodologies so they’re more efficient with greater consistency across distributors.

    View project