Have your say on ways to improve distributed generation pricing

The Electricity Authority Te Mana Hiko is seeking feedback on how we can improve the current distributed generation pricing principles (DGPPs) that guide the cost of connecting distributed generation, such as wind and solar farms, directly to the network.

Distributed generation (DG) can enhance regional resilience and network stability by providing communities with an alternative and localised source of energy, and by easing pressure on the local electricity network. It is an increasingly important part of New Zealand’s electricity system and can provide significant benefits for consumers and communities when developed in the right place, at the right time. 

As investment in DG grows, it’s important to review the rules and ensure they’re working for consumers.

We’ve identified an issue with the current distributed generation pricing principles. Under the current rules, distributors are prevented from recovering more than incremental costs from DG, which may prevent distributors from efficiently planning for future connections. We consider four possible options for addressing the incremental cost issue to promote more efficient investment in DG. We are now seeking feedback on these proposed solutions.

Alongside this issues paper, we are also seeking feedback on proposals that support the Energy Competition Task Force Initiative 2A. Initiative 2A considers requiring distributors to pay a rebate when consumers export electricity at peak times.