In 2016 the Electricity Authority reviewed the distributed generation pricing principles (DGPP) in Schedule 6.4 of the Code

In December 2016 the Authority decided to amend the Code so that distributed generation that does not efficiently defer or reduce grid costs will no longer receive ACOT payments under the regulated terms in Schedule 6.4. The Code  amendment comes into effect in four phases between 1 April 2018 and 1 October 2019. Transpower is required to identify  existing distributed generation that is required to meet the Grid Reliability Standards in each of the four transmission  planning regions, and provide a report to the Authority on its findings.

The Authority will decide, based on Transpower’s advice and following consultation, which existing distributed generation should receive ACOT payments under the regulated  terms. (Note that Transpower will be responsible for assessing the need for additional grid support from new distributed generation.)