General news

Updates to distribution pricing reform

  • Distribution
  • Prices

In May 2024 the Electricity Authority Te Mana Hiko will provide an update on its work planned to address the five issues set out in our issues paper on the targeted reform of distribution pricing. The five issues were:

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

The regulatory options considered for each of these issues included continuation, control and call-in.

We will provide an update on this work via our website and Market Brief newsletter in May.

Issues paper - Targeted reform of distribution pricing

Related News

New network connections policy to provide clarity and consistency

Electricity Networks Aotearoa, the body representing New Zealand’s 28 distributors, has recently published the policy document 'Queueing and management policy …

Guidance published on LRMC-based distribution rebates and updated eligibility of business consumers

The Electricity Authority Te Mana Hiko has published guidance giving distributors practical advice about how to calculate long run marginal cost and use it whe…

Data shows 6.8% increase to power bills across households and small businesses

Across all households and small businesses, power prices increased on average by 6.8% in the first half of 2026, according to new information provided by elect…