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Electricity Industry Participation Code (Connection Pricing Requirements) Amendment 2025

This amendment to the Electricity Industry Participation Code 2010 (Code) is made under section 38 of the Electricity Industry Act 2010 (Act) by the Electricity Authority having complied with section 39 of that Act.

		Contents
1		Title	2
2		Commencement	2
3		Code amended	2
		Part 1 Amendments to Part 1 of Electricity Industry Participation Code
4		Clause 1.1 amended (Interpretation)	2
		Part 2 Amendments to Part 6 of Electricity Industry Participation Code
5		Clause 1 of Schedule 6.3 amended	9
6		Clause 4 of Schedule 6.3 amended	9
	Part 3 Amendment to insert new Part 6B of Electricity Industry Participation Code
7	New Part 6B inserted			9
	Schedule
		Part 6B Distributor pricing methodologies, information requirements and other requirements

Amendment

1 Title

This is the Electricity Industry Participation Code (Connection Pricing Requirements) Amendment 2025.

2 Commencement

This amendment comes into force on 1 April 2026.

3 Code amended

This amendment amends the Electricity Industry Participation Code 2010.

Part 1

Amendments to Part 1 of Electricity Industry Participation Code

4 Clause 1.1 amended (Interpretation)

(1) In clause 1.1(1), insert in their appropriate alphabetical order:

acquired pioneer scheme means a pioneer scheme established by a distributor (the selling distributor) in accordance with clause 6B.7, where ownership of the whole or part of the distribution network to which the pioneer scheme relates is transferred to another distributor (the buying distributor)

buying distributor is defined as set out in the definition of acquired pioneer scheme

capacity costing requirements means the mandatory connection pricing methodology relating to capacity costs, the requirements for which are set out in clause 6B.5

capacity demand assumption means the design capacity applicable to a given connection application and network tier as determined by a distributor under clause 6B.5(1)(c)

connection, for the purposes of Part 6B, means the physical link between a consumer installation and a distribution network at a point of connection to enable electrical connection between the consumer installation and the distribution network, and connect has a corresponding meaning

connection administration fee means an amount paid by a connection applicant to a distributor for the administrative aspects relating to connection or increasing the security or capacity at a new point of connection, including assessing and processing connection applications and completing connection inspections

connection applicant means a person who—

(a) applies to a distributor to connect any load owned or operated, or to be owned or operated, by the person to the distributor’s distribution network, or to a consumer installation that is connected to the distribution network, including by an extension; or

(b) is a consumer, and applies to a distributor—

(i) to increase the security, or change the capacity of, the load connection provided to the consumer at the connection between the consumer installation owned or operated by the consumer and the distributor’s distribution network; or

(ii) to change to or from a flexible connection; and

(iii) includes where any of the connection applications in subparagraphs (i) and (ii) involves allocating additional network security or capacity, with or without associated physical works

connection application means an application of the kind described in the definition of connection applicant, made in accordance with a distributor’s connection process

connection charge means—

(a) any price, fee, tariff, charge or other similar monetary impost or cost, or any part of any price, fee, tariff, charge, or other similar monetary impost or cost and that is, either directly or indirectly, imposed, or required, or agreed by a distributor in relation to connection works for a connection applicant or is otherwise applied for the purposes of, or has the effect of, recovering connection works costs directly or indirectly from a connection applicant; and

(b) excludes any connection administration fees or pioneer scheme contributions

connection charge reconciliation means a standardised breakdown of connection charge components in accordance with clause 6B.11

connection charge reconciliation methodology requirements means the requirements set out in clauses 6B.10 and 6B.11

connection enhancement means a customer-selected enhancement or a distributor-selected enhancement

connection enhancement cost allocation requirements means the mandatory connection pricing methodology set out in clause 6B.4

connection pricing methodologies means the pricing methodologies that each distributor publishes setting out how it determines connection charges and connection pricing methodology has a corresponding meaning

connection process means the process a distributor requires a connection applicant to follow to establish or improve a connection, and may include requirements relating to information, timeframes, connection charges and connection works

connection revenue life means 30 years for a residential connection and 15 years for a non-residential connection, unless the distributor reasonably believes the connection will have a shorter revenue-generating life

connection works means an extension or a network capacity upgrade

connection works cost means the cost of connection works

Consumers Price Index means the Consumers Price Index (all groups) published by Statistics New Zealand or, if that index ceases to be published, any measure certified by the Government Statistician as being equivalent to that index

CPI movement means, for the purposes of Part 6B, the percentage movement in the Consumers Price Index for the 12-month period ending on 31 March in the previous calendar year

customer-owned assets means any assets whose ownership does not transfer to a distributor, such that a consumer will retain responsibility for its operation, maintenance and renewal, or disposal

customer-selected enhancement means any enhancement to the relevant minimum scheme requested, and agreed to in writing, by a connection applicant

dedicated assets means any assets owned or operated by a distributor that were built for one or more connections for the same person (for example, where two connections are provided under a single connection application) and are not subsequently used to support another person’s connection

disclosure year, for the purposes of Part 6B, means the 12-month period in which information disclosures are required of a distributor under section 53C of the Commerce Act 1986 and, if no such year is specified or if more than one 12-month period applies to the distributor under those information disclosure requirements, means the 12-month period ending on 31 March of the year a disclosure relates to

distributor-selected enhancement means any enhancement to the relevant minimum scheme chosen by a distributor

EDB ID determination means the Electricity Distribution Information Disclosure Determination 2012 [2012] NZCC 22, and any amendment of this determination

EDB IMs means the Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26, and any amendment of this determination

electricity lines services has the meaning given in section 54C of the Commerce Act 1986

extension means—

(a) works or operating arrangements to:

(i) provide a connection; or

(ii) increase the security or capacity of:

(A) a connection; or

(B) any assets owned or operated by a distributor

that do not increase the capacity of the shared network; or

(b) an extension-like upgrade; or

(d) does not include works or operating arrangements associated with customer-owned assets or work covered by a connection administration fee

extension cost means the cost of an extension

extension-like upgrade means works or operating arrangements that increase the capacity of the shared network that—

(a) substantially benefit only the connection applicant and the distributor reasonably considers this is likely to remain the case; and

(b) do not meet the threshold to use an estimate in clause 6B.5(2)

first pioneer is defined as set out in the definition of pioneer

flexible connection means an arrangement whereby a connection applicant’s export or import of electricity through the connection is managed (often through real-time control) based upon principles of available security or capacity agreed to in writing with the distributor

incremental cost estimate means an estimate of the incremental cost of a connection calculated in accordance with clause 6B.11(2)

incremental distribution revenue estimate means the portion of an incremental revenue estimate relating to distribution line charge revenue

incremental opex scaling factor means the scaling factor calculated in accordance with clause 6B.11(5)

incremental revenue estimate means an estimate of the incremental revenue from a connection calculated in accordance with clause 6B.11(3)

incremental transmission cost means an estimate of the cost of incremental transmission works including—

(a) a change in transmission charges due to a benefit-based charge adjustment event under paragraph 81(1)(e), (g), (h), (i) or (l) of the transmission pricing methodology; or

(b) new transmission charges relating to a high-value post-2019 BBI (as those terms are defined in the transmission pricing methodology)

incremental transmission revenue estimate means the portion of an incremental revenue estimate relating to pass-through of transmission charges

incremental transmission works means, in relation to a connection, works to establish a new grid connection, increase security or capacity of grid connection assets or otherwise alter grid connection assets to accommodate the new or altered connection

load means, for the purposes of Part 6B, any connection to a distribution network or to a consumer installation that consumes electricity

localised historical cost recovery means an allocation of historical distributor-selected enhancement costs or historical network development costs to subsequent connections that benefit from the works to which those costs relate

mandatory connection pricing methodologies means the pricing methodologies set out in Part 6B that each distributor must use for determining connection charges and pioneer scheme contributions and mandatory connection pricing methodology have corresponding meanings

minimum flexi scheme means connection works that deliver a flexible connection at lesser cost than the minimum scheme

minimum scheme means the least-cost solution for any connection works provided by a distributor, including for security and firmness of capacity, in accordance with the distributor’s connection and operation standards or a different standard if agreed to in writing between the connection applicant and the distributor

net incremental cost means incremental cost estimate less the incremental revenue estimate for a connection

network capacity cost means the cost of consuming or adding capacity in the shared network (other than extension-like upgrade costs)

network capacity upgrade means—

(a) works or operating arrangements to—

(i) provide a connection; or

(ii) increase the security or capacity of—

(A) a connection; or

(B) any assets owned or operated by a distributor;

that increase the capacity of the shared network; and

(b) for the avoidance of doubt, includes—

(i) operational changes made by the distributor that are required to provide the connection or to increase security or capacity; and

(ii) allocation of additional network security or capacity to the connection, even where this does not involve physical works or a change to a person’s right to capacity on a distributor’s distribution network; but

(i) extension-like upgrades; or

(ii) works or operating arrangements associated with customer-owned assets or work covered by a connection administration fee

network cost contribution means the difference between the connection charge for a connection and the net incremental cost of that connection

network costing zone means the part of a distribution network to which a common posted capacity rate applies

network tier means any one of the following components of a distribution network:

(a) sub-transmission line:

(b) zone substation:

(d) distribution substation:

(e) low voltage mains

nominal capacity increment means an amount of added capacity corresponding to the assumptions used to derive a posted capacity rate

operating cost loading means estimated incremental operating costs associated with a connection, where the estimate is either—

(a) zero if the consumer or consumers at the connection will pay posted tariffs; or

(b) if the consumer or consumers at the connection will not pay posted tariffs, a reasonable assessment of incremental operating costs associated with the connection—

(i) including costs associated with operating and maintaining new assets; and

(ii) excluding transmission charges; and

(iii) expressed as the present value of future costs

pioneer means—

(a) the connection applicant referred to in paragraph (a) of the definition of pioneering connection works (the first pioneer); and

(b) any connection applicant who subsequently connects to the pioneering connection works or vested pioneering works (a subsequent pioneer) and—

(i) who makes a pioneer scheme contribution of more than the amount of $25,000 in December 2025 dollar terms, adjusted each year by the CPI movement, or a lesser amount specified by the distributor; and

(ii) is determined by the relevant distributor to be a subsequent pioneer under clause 6B.7(1)(b); and

(c) any other person to whom the status of first pioneer or subsequent pioneer has transferred in accordance with clause 6B.8(6)

pioneering connection works means an extension where—

(a) the portion of the extension cost initially met by a connection applicant is more than the amount of $50,000 in December 2025 dollar terms, adjusted each year by the CPI movement, or a lesser amount specified by the distributor; and

(b) the connection applicant has not opted out of applying a pioneer scheme to the extension by agreeing in writing with the relevant distributor that the extension should not form part of a pioneer scheme; and

(c) it is feasible that other parties may seek to connect to all or part of, or make use of, the extension at a later date; but

(d) excludes an extension where the extension costs are established using posted connection charges; and

(e) excludes any portion of extension cost relating to a benefit-based charge adjustment event as defined in the transmission pricing methodology

pioneer scheme means—

(a) an arrangement that covers any part of a distributor’s network or the distributor’s grid connections that comprises pioneering connection works, and includes an acquired pioneer scheme; and

(b) a vested pioneer scheme

pioneer scheme contribution means a payment to be made by a connection applicant to a distributor—

(a) determined in accordance with clause 6B.8; and

(b) any similar legally binding obligation put in place for any connection works built or established for a single consumer prior to 1 April 2026

pioneer scheme policy means a policy published in accordance with clause 6B.9

pioneer scheme pricing methodology requirements means the mandatory connection pricing methodologies set out in clauses 6B.6 to 6B.9

posted capacity rate means the estimated average cost per capacity unit that is published by a distributor for a network capacity upgrade for a given network tier and network costing zone, where the rate may be set to zero if the distributor reasonably considers there is no foreseeable need within the distributor’s applicable network planning horizon for a network capacity upgrade

posted connection charge means a connection charge that is published by a distributor that applies to any connection of a type that meets requirements specified by the distributor

posted extension rate means a unit rate that has been published by a distributor for use in building up extension cost estimates for connections that meet requirements specified by the distributor

posted tariff means a price or rate schedule published by a distributor that sets out standard charges for use of a distribution network

real estate development means the development of land for the purpose of on-selling including its development in one or more of the following ways:

(a) subdivision:

(b) the construction of commercial or industrial premises (or both):

rebate means any disbursement, credit or deduction made to a pioneer by a distributor in accordance with clause 6B.8(5)

relevant minimum scheme means a minimum scheme or, if a connection applicant requests it and the distributor can reasonably supply it, a minimum flexi scheme

selling distributor is defined as set out in the definition of acquired pioneer scheme

shared network means any part of a distribution network that is not customer-owned assets or dedicated assets

start date, for a pioneer scheme, means the date the first pioneer for the pioneer scheme made its first connection charge payment in relation to the pioneering connection works or the vested pioneering works subject to the pioneer scheme

subsequent pioneer is defined as set out in the definition of pioneer

vested pioneer scheme means an arrangement that covers any part of a distributor’s network where a consumer carried out or funded works that were initially owned by the consumer and the distributor to whose network the works were connected agreed to take ownership of the works and that those works should form a pioneer scheme

vested pioneering works means the works carried out or funded by a consumer as referred to in the definition of vested pioneer scheme.

(2) In clause 1.1(1), definition of adjustment clause replace “Consumer Price Index” with “Consumers Price Index”.

(3) In clause 1.1(1), definition of consumer installation replace “and Part 6” with “, Part 6 and Part 6B”.

Part 2

Amendments to Part 6 of Electricity Industry Participation Code

5 Clause 1 of Schedule 6.3 amended

In clause 1 of Schedule 6.3 replace “clause 6.8” with “clauses 6.8 and 6B.12 of this Code”.

6 Clause 4 of Schedule 6.3 replaced

Replace clause 4 of Schedule 6.3 with:

4 Application of distributed generation pricing principles and mandatory connection pricing methodologies to disputes

(1) The Authority and the Rulings Panel must—

(a) in relation to a dispute under clause 6.8, apply the distributed generation pricing principles set out in Schedule 6.4 to determine any connection charges payable in respect of connections of distributed generation; and

(b) in relation to a dispute under clause 6B.12, require a distributor to determine any connection charges payable in respect of connections of load in a manner specified by the Authority or the Rulings Panel that is consistent with the mandatory connection pricing methodologies.

(2) Subclause (1) applies if—

(a) there is a dispute under Part 6 or Part 6B of this Code; and

(b) in the opinion of the Authority or the Rulings Panel it is necessary or desirable to apply subclause (1) in order to resolve the dispute.

Part 3

Amendment to insert new Part 6B of Electricity Industry Participation Code

7 New Part 6B inserted

Insert new Part 6B set out in the Schedule of this amendment.

Schedule

cl 7

New Part 6B inserted

Part 6B

Distributor pricing methodologies, information requirements and other requirements

Contents

6B.1 Contents of this Part

6B.2 Application of this Part

6B.3 Distributors must comply with mandatory connection pricing methodologies

6B.4 Connection enhancement cost allocation requirements

6B.5 Capacity costing requirements

6B.6 Distributors must develop a pioneer scheme policy

6B.7 Requirements for a pioneer scheme

6B.8 Determining connection charges, contributions and rebates for pioneer schemes

6B.9 Distributors must publish information on pioneer schemes

6B.10 Distributor must provide connection charge reconciliation on request

6B.11 Connection charge reconciliation requirements

6B.12 Disputes between distributors and connection applicants that are participants

6B.13 Disputes between distributors and connection applicants that are not

participants

6B.1 Contents of this Part

This Part specifies—

(a) mandatory connection pricing methodologies which are the pricing methodologies that must be applied by distributors in relation to connection charges and pioneer scheme contributions; and

(b) information requirements for distributors in relation to access to distribution networks; and

(c) application of the dispute resolution process in Schedule 6.3 to the requirements under this Part where connection applicants are participants and enhancement of the processes available to non-participants.

6B.2 Application of this Part

(1) This Part does not apply to—

(a) any connection application received by a distributor prior to 1 April 2026; or

(b) a distributor in respect of the distributor's ownership or operation of a secondary network; or

(2) For the avoidance of doubt—

(a) this Part applies in addition to Part 6 and applies to all connection applications for load and, if there is any inconsistency between this Part and Part 6, this Part prevails;

(b) a connection applicant who is not a participant is not required to comply with this Part and cannot be subject to the enforcement measures set out in the Act or the Electricity Industry (Enforcement) Regulations 2010 for failing to comply with this Part.

(3) If an application under Part 6 includes both load and distributed generation—

(a) the connection enhancement cost allocation requirements and the capacity costing requirements must be applied to the load component of the application before Part 6 is applied to the distributed generation component of the application; and

(b) the pioneer scheme pricing methodology requirements and connection charge reconciliation methodology requirements must be applied to the connection as a whole.

Connection pricing methodologies

6B.3 Distributors must comply with mandatory connection pricing methodologies

(1) Each distributor must apply the mandatory connection pricing methodologies in subclause (2) in setting connection charges, including in the calculation of quoted charges and application of such charges, the allocation of costs to persons, and in otherwise recovering or allocating connection works costs.

(2) The mandatory connection pricing methodologies are:

(a) the connection enhancement cost allocation requirements in clause 6B.4:

(b) the capacity costing requirements in clause 6B.5:

(d) the connection charge reconciliation methodology requirements in clauses 6B.10 and 6B.11.

(3) Despite subclause (1), a distributor is—

(a) not required to apply the pioneer scheme pricing methodology requirements in respect of real estate developments; and

(b) in respect of any connection covered by a large connection contract as defined in the EDB IMs, required to apply the connection charge reconciliation methodology requirements only.

(4) A distributor must not refuse to connect a person to the distributor’s distribution network for the purpose of avoiding compliance with the mandatory connection pricing methodologies.

Connection enhancement cost allocation requirements

6B.4 Connection enhancement cost allocation requirements

(1) Subject to subclauses (2) to (4), each distributor in determining the connection charges that it requires a connection applicant to pay for or in respect of a connection or any increase in security or capacity at a point of connection or for an asset—

(a) must determine those connection charges on the basis of the relevant minimum scheme, unless the connection applicant agrees in writing to modifications to the relevant minimum scheme; and

(b) if modifications are made to the relevant minimum scheme, must allocate only the customer-selected enhancement costs to the connection applicant, in addition to the costs of the relevant minimum scheme; and

(2) If a connection applicant and distributor agree in writing that the distributor does not need to determine the cost of the relevant minimum scheme, the distributor does not need to determine charges in accordance with subclause (1).

(3) If a connection applicant and distributor agree in writing to an alternative allocation of connection enhancement costs than set out in subclause (1), the distributor does not need to determine charges in accordance with subclause (1).

(4) If a distributor publishes posted connection charges, it may use those charges to determine the charges under subclause (1), instead of applying subclauses (1)(a) to (1)(b), where the connection is of the type and meets the requirements specified by the distributor for the posted connection charge.

(5) If a distributor publishes posted extension rates, it must use those rates to determine the costs under a relevant minimum scheme or for any customer-selected enhancement costs, where the connection works are of the type and meet the requirements specified by the distributor for the posted extension rate, unless otherwise agreed in writing with the connection applicant.

Capacity costing requirements

6B.5 Capacity costing requirements

(1) If a distributor intends to include or includes network capacity costs (in whole or in part) in the charges payable by a connection applicant for or in respect of any connection works, it must—

(a) determine a posted capacity rate for each network tier and network costing zone in respect of which it charges for network capacity costs for each current disclosure year and the following four disclosure years on an annual rolling basis; and

(b) not revise the posted capacity rates and nominal capacity increments published under paragraph (a) for the current disclosure year and the following disclosure year except to correct errors; and

(c) determine the capacity demand assumption for each network tier and network costing zone to which each connection application that it receives relates having reasonable regard to any relevant information provided by the connection applicant; and

(d) use the posted capacity rate and capacity demand assumption applicable to each network tier and network costing zone to which the connection application relates to calculate the network capacity costs.

(2) If the capacity demand assumption determined by a distributor for a network tier (other than distribution substations and low voltage mains) is greater than 80% of the nominal capacity increment for that network tier, the distributor may use estimated capacity upgrade costs for that network tier instead of the posted capacity rate in the calculation under subclause (1)(d).

(3) If the distributor determines that the estimated cost per unit to add capacity at a network tier is more than 150% or less than 80% of the applicable posted capacity rate for that network tier and network costing zone, the distributor may use the estimated rate instead of the posted capacity rate in the calculation under subclause (1)(d).

(4) This clause does not apply to any connection application received by a distributor prior to 1 April 2027.

(5) Subclause (1)(b) does not apply with respect to posted capacity rates and nominal capacity increments for the disclosure year ending 31 March 2028.

Pioneer scheme pricing methodology requirements

6B.6 Distributors must develop a pioneer scheme policy

(1) Each distributor must develop a pioneer scheme policy by 1 April 2026.

(2) The pioneer scheme policy must set out how the distributor will apply the requirements in clauses 6B.7 and 6B.8, including how it will—

(a) determine whether a pioneer scheme exists; and

(b) determine the matters in clause 6B.7(1)(b) and (3); and

6B.7 Requirements for a pioneer scheme

(1) For the purposes of clause 6B.6, this clause and clause 6B.8—

(a) a pioneer scheme continues from its start date until the expiry date set by the distributor, which must be not less than 7 years from the start date, unless each pioneer to the pioneer scheme and the distributor agree in writing that the scheme shall cease at an earlier date; and

(b) a distributor may determine which persons, other than the first pioneer, are subsequent pioneers.

(2) For the purposes of this clause and clause 6B.8, a distributor must—

(a) determine whether a pioneer scheme exists in accordance with this Part and its pioneer scheme policy; and

(b) record the location on its network that the pioneer scheme covers.

(3) Each distributor must determine for each pioneer scheme additional or more detailed pricing methodologies to those set out in clause 6B.8 specifying how it will, in a way that is consistent with clause 6B.8,—

(a) administer and collect pioneer scheme contributions; and

(b) determine and apply rebates; and

(4) A distributor must treat all connection applicants that connect to pioneering connection works or vested pioneering works as subject to the relevant pioneer scheme.

(5) If a pioneer scheme is an acquired pioneer scheme, the purchasing distributor—

(a) must not change any aspect of the matters determined for the pioneer scheme by the selling distributor or the pioneer scheme policy for that scheme set by the selling distributor, unless each pioneer to a pioneer scheme and the

distributor agree in writing to a change; and

(b) must continue to administer, and comply with, those requirements and that pioneer scheme policy in complying with this clause and clauses 6B.8 and 6B.9.

6B.8 Determining connection charges, contributions and rebates for pioneer schemes

(1) From 1 April 2026, where there is a pioneer scheme, the distributor must, in determining connection charges and, where applicable, any other charges, for—

(a) the first pioneer to the scheme, comply with subclause (2); and

(b) for each subsequent pioneer to the scheme and each other connection applicant that connects to the pioneering connection works or vested pioneering works covered by the scheme, comply with subclause (3).

(2) The distributor must, in determining the connection charges and any other charges payable by the first pioneer to a pioneer scheme—

(a) from the time that any other pioneer or other connection applicant connects to the pioneering connection works or vested pioneering works covered by the scheme, apply a rebate determined in accordance with subclause (5); and

(b) otherwise comply with its pioneer scheme policy and the matters determined under clause 6B.7; and

(c) determine the costs of the pioneering connection works or vested pioneering works in accordance with subclause (4)(a).

(3) The distributor must, in determining the connection charges and any other charges payable by each subsequent pioneer or other connection applicant that connects to the pioneering connection works or vested pioneering works covered by a pioneer scheme—

(a) comply with the pioneer scheme contribution requirements set out in subclause (4); and

(b) in the case of a subsequent pioneer, from the time that any other pioneer or other connection applicant connects to the pioneering connection works or vested pioneering works covered by the scheme, apply a rebate determined in accordance with subclause (5); and

(4) The pioneer scheme contribution is to be determined as follows:

(a) in determining the costs of the pioneering connection works or vested pioneering works—

(i) the distributor must use the actual costs if these are known to the distributor;

(ii) if the actual costs are not known to the distributor (for example, if the pioneering connection works or vested pioneering works were constructed or contracted by a person other than the distributor), the distributor may use its estimated costs of the works;

(iii) if the distributor is using information provided by the consumer who constructed or paid for any vested pioneering works, the distributor must be reasonably satisfied that the information is accurate:

(b) the distributor must apply straight-line depreciation to the costs of the pioneering connection works or the vested pioneering works that the pioneer scheme relates to determine the present-day value of those costs each time it calculates pioneer scheme contributions, using a depreciation period of 20 years:

(c) the distributor must take into account distance (along an extension) and capacity of each pioneer or connection applicant that connects to pioneering connection works:

(d) pioneer scheme contributions must not be collected if the pioneer scheme contribution would be less than the amount of $1,000 in December 2025 terms adjusted each year by the CPI movement after deducting any fee to cover the reasonable costs of administering the scheme, or of a lesser amount specified by the distributor.

(5) The rebate due to a pioneer must be determined in a way that shares any pioneer scheme contribution received by a distributor among all pioneers covered by the pioneer scheme proportionate to the extent to which each pioneer has met the costs of the pioneering connection works or the vested pioneering works and after deducting any fee to cover the reasonable costs of administering the scheme.

(6) A distributor must determine whether and in what circumstances the status of first pioneer or subsequent pioneer may transfer to a different person or persons (for example, where the status is to be apportioned between multiple people).

(7) This clause does not apply to a pioneer scheme entered into before 1 April 2026.

6B.9 Distributors must publish information on pioneer schemes

(1) Each distributor must—

(a) publish its pioneer scheme policy, which must include how it will;—

(i) determine pioneer scheme contributions; and

(ii) administer and collect pioneer scheme contributions; and

(iii) determine and apply rebates; and

(iv) determine which persons are eligible for rebates; and

(v) distribute funded asset rebates it receives in accordance with clause 29 of the transmission pricing methodology relating to incremental transmission works to pioneers; and

(vi) determine whether and in what circumstances the status of first pioneer or subsequent pioneer may transfer to a different person or persons; and

(b) make each connection applicant aware of the existence of the pioneer scheme policy;

(c) publish the details of each pioneer scheme it administers, applying the requirements in clause 6B.7, including the following information:

(i) the part of its network that the pioneer scheme covers:

(ii) the start date of the pioneer scheme:

(iii) the expiry date of the pioneer scheme:

(iv) the relevant opening value(s) of the pioneering connection works, vested pioneering works, or parts of these works covered by the pioneer scheme.

(2) Subclause (1)(c) does not apply to a pioneer scheme entered into before 1 April 2026.

Connection charge reconciliation methodology requirements

6B.10 Distributor must provide connection charge reconciliation on request

(1) If requested by a connection applicant during the connection process, or as otherwise required under subclause (2), a distributor must provide a written connection charge reconciliation.

(2) A distributor must, when providing a quote for the connection charge or connection charges, in respect of any connection works, either—

(a) provide a written connection charge reconciliation; or

(b) notify the connection applicant of their right to request a written connection charge reconciliation under this clause.

(3) If requested by the Authority, a distributor must—

(a) provide information on connection charge reconciliation amounts to the Authority within the timeframe specified by the Authority; and

(b) if requested, provide sufficient information under paragraph (a) to enable the Authority to understand how the distributor determined those amounts.

6B.11 Connection charge reconciliation requirements

(1) A connection charge reconciliation must show:

CC = (IC - IR) + NC

where

CC is the connection charge or connection charges

IC is the incremental cost estimate

IR is the incremental revenue estimate

NC is the network cost contribution.

(2) A distributor must assess the incremental cost estimate under subclause (1), and show this assessment in the connection charge reconciliation, in accordance with the following formula:

IC = EC + CSE + NCC + ITC + LHCR + OCL

where

IC is the incremental cost estimate

EC is the extension cost of the relevant minimum scheme, excluding any incremental transmission cost

CSE is the customer-selected enhancement costs, if any

NCC is the network capacity cost of the relevant minimum scheme calculated in accordance with clause 6B.5, including in respect of a connection application received by a distributor prior to 1 April 2027 as though that clause applied to the connection application

ITC is the incremental transmission cost, if any

LHCR is the localised historical cost recovery, if any

OCL is the operating cost loading, if any.

(3) A distributor must assess the incremental revenue estimate under subclause (1), and show this assessment in the connection charge reconciliation, in accordance with the following formula:

IR = IDR + ITR

where

IDR is the incremental distribution revenue estimate

ITR is the incremental transmission revenue estimate.

(4) A distributor must assess the incremental distribution revenue and incremental transmission revenue estimates, and show this assessment in the connection charge reconciliation, by—

(a) estimating revenue from electricity lines services (excluding connection charges and connection administration fees) the distributor will receive in respect of the connection in the first disclosure year (or part disclosure year) following the electrical connection of the connection or the completion of the connection works, whichever is later; and

(b) estimating revenue for subsequent disclosure years by adjusting the estimate derived under paragraph (a) for—

(i) change from part-year to full-year, if applicable; and

(ii) forecast changes in demand at the connection (if any); and

(iii) forecast changes in revenue per connection, in real terms, for any years for which the distributor has a reasonable revenue path forecast; and

(iv) forecast changes in tariff structures or levels for any years for which the distributor has a reasonable price path forecast; and

(i) a duration from the beginning of the first full year of operation equal to the connection revenue life; and

(ii) a discount rate equal to the most recent available mid-point estimate of vanilla WACC (being the weighted average cost of capital) made by the Commerce Commission in accordance with the EDB ID determination made under Part 4 of the Commerce Act 1986 less an adjustment to remove inflation consistent with inflation projections for the year ahead from the most recent Monetary Policy Statement published by the Reserve Bank of New Zealand; and

(d) for incremental distribution revenue only, and only where the incremental cost estimate includes an operating cost loading which is not zero, multiplying the amount derived after the application of paragraph (c) by the distributor’s incremental opex scaling factor calculated in accordance with subclause (5).

(5) A distributor must calculate its incremental opex scaling factor, and show this calculation in the connection charge reconciliation, in accordance with the following formula:

ASO

AEDR

where

OSF is the incremental opex scaling factor

ASO is the average selected opex, being the average value over the five most recent available disclosure years of the sum of a distributor’s—

(a) operational expenditure relating to service interruptions and emergencies as defined in the EDB ID determination; and

(b) operational expenditure relating to vegetation management as defined in the EDB ID determination; and

(c) operational expenditure relating to routine and corrective maintenance and inspection as defined in the EDB ID determination; and

(d) any costs described in clause 3.1.2(1)(a) of the EDB IMs

AEDR is the average electricity distribution revenue, being the average value over the five most recent available disclosure years of a distributor’s distribution line charge revenue (excluding revenue relating to pass through of electricity transmission costs)

and where all values must exclude goods and services tax and be expressed in real terms (with a common base year).

(6) A distributor may further adjust the calculation of the amounts of the CC, IC and IR in subclauses (1) and (2), as applicable, to recognise differences in the timing of cashflows using a discount rate for each year consistent with the rate determined in subclause (4)(c)(ii).

(7) A distributor must treat in-kind contributions consistently as between CC and IC (either both zero or both the same estimated value).

Disputes about the application of this Part

6B.12 Disputes between distributors and connection applicants that are participants

(1) If there is a dispute between a connection applicant that is a participant and a distributor about the application of any of the mandatory connection pricing methodologies, either participant may commence the default dispute resolution process in Schedule 6.3 at any time.

(2) Subclause (1) does not apply to disputes about the following clauses:

(a) Clause 6B.5(1)(a) to (b) (requirements relating to network capacity costs):

(b) Clause 6B.6 (requirement to develop a pioneer scheme policy):

(d) Clause 6B.9 (requirement to publish information on pioneer schemes):

(e) Clause 6B.10(3) (requirement to provide information to the Authority on connection charge reconciliation amounts).

6B.13 Disputes between distributors and connection applicants that are not

participants

(1) If a connection applicant that is not a participant is in a dispute with a distributor about the application of this Part, other than a dispute about any of the clauses listed in clause 6B.12(2), and has notified the distributor of the dispute, the distributor must attempt to resolve the dispute in good faith.

(2) For the avoidance of doubt, nothing in this clause prevents the connection applicant from reporting a breach or possible breach of this Code under regulation 9 of the Electricity Industry (Enforcement) Regulations 2010 or from making a complaint to the distributor under regulation 5 of the Electricity Industry (Enforcement) Regulations 2010 at any time.

Made at Wellington on 4^th day of September 2025

Anna Kominik

Chair

Electricity Authority

Certified in order for signature:

Nicholai Mumford Nick Crang

Senior Legal Counsel Partner

Electricity Authority Duncan Cotterill

1 September 2025 1 September 2025

Explanatory Note

This note is not part of the amendment but is intended to indicate its general effect.

This amendment to the Electricity Industry Participation Code 2010 (Code) comes into force on 1 April 2026.

The amendment inserts a new Part 6B into the Code to implement requirements on distributors to comply with mandatory connection pricing methodologies, information requirements and other requirements for load connections. The requirements consist of:

· Enhancement cost allocation requirements. This requires connection charges to be determined with reference to a “relevant minimum scheme”, with enhancement costs (if any) allocated to the party that seeks the enhancement.

· Capacity costing requirements. This requires that any upstream costs allocated to access seekers, use published rates to allocate costs as capacity headroom is consumed (not as it is built).

· Pioneer scheme requirements. This requires rebates to be paid to the “pioneers” that fund network extensions as subsequent parties connect.

· Connection charge reconciliation requirement. This requires distributors to prepare and provide a standardised breakdown of connection charges into incremental and network cost components.

This is secondary legislation issued under the authority of the Legislation Act 2019.
Title	Electricity Industry Participation Code (Connection Pricing Requirements) Amendment 2025
Principal or amendment	Amendment
Consolidated version	No
Empowering Act and provisions	Electricity Industry Act 2010, section 38
Replacement empowering Act and provisions	Not applicable
Maker name	Electricity Authority
Administering agency	Electricity Authority
Date made	4 September 2025
Publication date	8 September 2025
Notification date	8 September 2025
Commencement date	1 April 2026
End date (when applicable)	Not applicable
Consolidation as at date	Not applicable
Related instruments	Electricity Industry Participation Code 2010