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.
Overview
We’ve published an update paper outlining our key next steps towards targeted distribution pricing reform. We want to see greater investment, innovation and transparency in the system, and we’re investigating options to progress Code amendments to regulate how capital contributions or connection charges are set for those looking to connect to the network.
Timeline
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10 October 2023
Scorecards —Publication of 2023 Distribution pricing scorecards and information paper
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September 2023
Industry forums — -
August/September 2023
Development —Publish final scorecard assessments 2023/24
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21 December 2022
Correspondence —Three changes to our scorecard assessments approach
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18 October 2022
Development —Guidance on distribution pricing and pass-through of transmission charges
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19 September 2022
Correspondence —Our expectations for faster reform of distribution pricing
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6 May 2022
Update —Update to Distribution pricing practice note (v2.1)
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21 December 2021
Update —Practice note update - Distribution pricing practice note (Second edition)
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21 September - 3 November 2021
Consultation —Refreshed guidance on efficient distribution pricingView consultation -
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4 November 2019
Decision —From 2019 pricing methodologies are assessed annually using distribution pricing scorecards.
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4 June 2019
Decision —More efficient distribution prices principles and practice
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8 April 2019
Correspondence —The Electricity Authority welcomes the Electricity Networks Association Network Transformation Roadmap
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11 December 2018 - 19 February 2019
Consultation —Consultation paper on more efficient distribution pricing
More efficient distribution pricesView consultation -
6 March 2018
Development —Overseeing an industry-led approach to reform distribution pricing structures
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25 October 2016
Development —Next steps in distribution pricing review
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17 August 2016
Event —Distribution pricing conference
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9 August 2016
Development —Guidelines for low fixed charge regulations
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12 Jul 2016
Development —Implications of evolving technologies for pricing of distribution services
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16 June 2016
Correspondence —Possible implications for efficient distribution pricing of changing the form of control
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3 November 2015 - 2 February 2016
Consultation —Implications of evolving technologies for pricing of distribution services
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16 December 2013
Development —Results of distribution pricing review
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April 2013
Development —Distribution pricing: alignment review
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5 March 2013
Development —Decision making and economic framework for distribution pricing methodology
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8 May - 22 June 2012
Consultation —Decision making and economic framework for distribution pricing methodology review
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September - October 2011
Development —Criteria for assessing alignment against the information disclosure guidelines and pricing principles
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6 September - 17 October 2011
Development —Criteria for assessing alignment against the information disclosure guidelines and pricing principles
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March 2010
Development —Distribution pricing principles and information disclosure guidelines
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1 - 22 December 2009
Consultation —Draft final distribution pricing principles and information disclosure guidelines
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27 November 2009
Technical group —Distribution pricing administrative issues working group
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12 October 2009
Event —Workshop
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October 2009
Development —Summary of submissions and discussion paper
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October - November 2009
Development —Distribution pricing administrative issues working group
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27 June 2009
Event —Workshop
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5 June - 10 July 2009
Consultation —Model approach to distribution pricing
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January 2009
Background —The last substantive work on distribution pricing was undertaken by the pricing approaches working group
Project background
There are 29 distribution companies in New Zealand. They provide and maintain the local power networks that carry electricity via power poles and lines from the national transmission grid to homes and businesses.
We would like to improve distribution pricing to benefit 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.
This project is focused on supporting reform towards more efficient distribution pricing structures. Efficient distribution pricing can help:
- reduce network upgrade and expansion costs
- offer more choice and flexibility for consumers
- enable consumers to make prudent technology investment decisions
- ensure New Zealand’s transition to a low-emissions future is on the most efficient path.
Other projects in Enabling investment and innovation
View all projectsCode amendment omnibus
Consulting on amendments to the Electricity Industry Participation Code.
Transmission pricing methodology
Allocating investment and funding correctly to ensure the best outcomes for consumers.
Spot market settlement on real-time pricing
Dispatch-based, look-ahead design for real-time pricing to make wholesale spot prices more certain, accurate and efficient.