General news
Electricity Authority consults on definition of "small business" for rebates eligibility
- Distribution
- Code
In July 2025 the Electricity Authority Te Mana Hiko (Authority) introduced a requirement that, from 1 April 2026, electricity distribution businesses will need to pay negative charges (rebates) to reward households and small businesses for supplying power to the network when needed at peak times, helping to keep the network resilient and affordable.
Since introducing the requirement, we have found that distributors are facing challenges in applying the definition of “small business consumer” (defined in the Electricity Industry Act 2010 as those using less than 40MWh per year) because they generally work with connection capacity (kVA), not annual consumption.
We have also identified that some large generators could qualify for the rebates, even though the new rules were intended to apply to mass market consumers (households and small businesses) rather than large generators.
We are now consulting on a proposal to remove the reference to “small business consumers”, and instead require that the negative charge is applied to:
- price categories targeting business consumers with a connection capacity of 45kVA or less
- distributed generation systems where the maximum deliverable generation capacity is 45kW or below.
We consider that, together, these changes would make the policy clearer and easier to apply, ensuring that the rebates apply to the mass market consumers we intended to target, while avoiding an unintended extension of the policy to larger-scale generators.
We welcome your feedback before 21 November 2025.
Related News
Authority notes decision on South Pacific Energy Limited
The Electricity Authority Te Mana Hiko acknowledges a Rulings Panel decision published today which fined electricity retailer South Pacific Energy Limited $88,…
Decision on 23 October 2025 under-frequency event
An under-frequency event occurred at about 10.12am on 23 October 2025, when HVDC Pole 3 tripped offline and the frequency in the North Island fell to 49.02…
Register now for the Industry Exercise 2026
The Electricity Authority Te Mana Hiko and Transpower invite organisations across the electricity sector to register for the Industry Exercise on 20-21 May 202…