Issues paper - Targeted improvements through distribution pricing reform

We’ve released our issues paper on targeted distribution pricing reform and are seeking industry and stakeholder feedback on the issues presented.

Distribution networks have a crucial role to play in the decarbonisation of our electricity system and the rapid electrification of our wider economy. Meeting the demands of increased adoption of electric vehicles and replacement of fossil fuels during the energy transition requires significant investment in our distribution networks.

Ensuring that any reform of distribution pricing occurs both in a timely manner and that has consumer benefits at its forefront, is a key concern for the Authority.

We’re seeking industry and stakeholder feedback on the following issues discussed in our paper:

• prices that signal the cost of network use at periods of high demand
• prices that do not distort network use during off-peak periods
• efficient allocation of shared costs between consumer groups
• consistent and efficient connection pricing (capital contributions)
• retailers’ response to distribution pricing signals.

The feedback and submission process will run for 5 weeks until 9 August 2023, during which we plan on holding an online information webinar on 21 July for questions and answers on our issues paper. We will then hold two weeks of further consultation for submitters to provide cross-submissions on feedback received on our paper.

Upon considering stakeholder and industry feedback, we will decide whether to propose Code amendments for consultation, which (if any) could be proposed in late 2023.

Read our issues paper and register for our webinar.