New rules on connection charges: explainers and guidance

We’ve introduced new rules coming into effect throughout 2026/27 to improve connection pricing methodologies. To support distributors and those wanting to connect to networks, we’ve created webpages that explain the new rules and what they mean.

We have also developed draft guidance to help distributors apply the upcoming rules to improve connection pricing methodologies through targeted intervention based on the balance point principle. Before finalising the guidance, we are seeking feedback to ensure it’s workable, while achieving the policy intent.

Supporting information and resources

Information for those connecting to networks: new connection pricing rules for 2026-27

Information for distributors: connection pricing rules 2026-27

Each of these webpages give an overview of:

• the three rules, or ‘fast-track’ measures, that came into effect on 1 April 2026
• the dispute resolution provisions, which were extended on 1 April 2026 so all those seeking connections can access this process
• the targeted intervention for inefficiently high up-front connection charges that allows the Authority to examine distributors' connection pricing methodologies, and where necessary, direct them to be adjusted to more efficient levels that takes effect on 1 August 2026
• explanations on what the rules mean for connection applicants and what they can expect
• additional information and resources for distributors to support implementation, eg worked examples.

Draft guidance for feedback

From 1 August 2026, distributors’ pricing methodologies should be consistent with the ‘balance point principle’ as specified in the Code. The Authority can intervene if pricing methodologies are not consistent with the principle.

Applying the ‘balance point principle’ means costs of new and upgraded connections are not subsidised by existing network users and new, and upgraded connections make a comparable contribution to shared network costs as similar existing connections.

We have drafted guidance to help distributors to assess how well their pricing methodologies align with the balance point principle, including any changes to pricing methodologies they might be considering.

The guidance will also help distributors understand how they would need to interact with the Authority if their pricing methodologies do not align with the principle.

We are seeking feedback on the draft guidance to ensure it is clear, complete and workable. We are not seeking feedback on policy decisions.

The team is happy to meet with you if it would be useful to discuss the guidance for your particular circumstances.

Email your feedback and get in touch with the team at connection.feedback@ea.govt.nz with ‘BPP framework guidance’ in the subject line. All feedback must be received by 5pm, 7 August 2026.

Questions?

Read our FAQ webpage for our responses to questions on these new rules to improve connection pricing methodologies.

Or you can contact the team at connection.feedback@ea.govt.nz with ‘connection pricing’ in the subject line.