Improving the Default Distributor Agreement and consumption data templates

We’re improving regulations and processes for when a retailer seeks to operate on a distributor’s network.

The changes are to Part 12A of the Electricity Industry Participation Code 2010, which allow the Default Distributor Agreement (DDA) and consumption data template to be amended.

The Authority is taking steps to keep the DDA up to date and functioning effectively to support a competitive, reliable and efficient electricity industry. We have made changes to some of the provisions in the agreement to enable this.

Effective competition is essential for the system to deliver reliable electricity at the lowest possible cost to consumers. These regulatory changes will ensure consumers ultimately benefit from a more efficient system that supports lower costs and better network reliability.

The DDA is a key part of the Code that sets out requirements for retailers who operate on distribution networks.

We consulted on proposed changes to the DDA in late 2023. After considering feedback, we undertook a smaller follow-up consultation earlier this year on four further proposed changes.

We have considered all submitter’s feedback and made final decisions to:

• change ‘recorded’ terms in the DDA to either ‘core’ terms or ‘operational’ terms to improve workability and consistency, which creates more effective agreements
• streamline the processes to obtain and use consumer consumption data so distributors can better manage their networks, which promotes more efficient investment in, and use of, distributed energy resources
• reduce retailers’ costs when competing for customers on networks, which will promote a more vigorous competition and encourage retailers to develop more innovative products and services for consumers
• reduce transaction costs between retailers and distributors negotiating DDAs, with efficiencies resulting in lower costs to consumers
• ensure that consumers are not charged for services they do not receive, for example during prolonged electricity outages or in a regional emergency where a request for disconnection cannot be actioned
• improve reliability standards which strengthens the incentive for distributors to maintain a quality, reliable electricity supply for consumers.

These changes will come into effect on 25 November 2024. Read our decision paper.

About Default Distributor Agreements