Updates to distributor scorecards

The Electricity Authority Te Mana Hiko has decided to pause the distribution pricing scorecard process for 2024.

Our assessment of distributors in 2023 found they had made improvements in their pricing and were largely progressing well towards meeting the 2019 Distribution pricing principles and following guidance from the 2022 open letter on distribution pricing reform. Although there are still certain areas for future improvement that we will continue to focus on.

Wider reform of distribution pricing is expected to lead to lower expenditure on distribution network infrastructure – by providing signals to help direct users toward low-cost usage and investment choices. Whilst distribution pricing scorecards provide a useful summary of distributors’ progress towards efficient pricing, they are a resource-intensive process to undertake.

To deliver progress towards wider reform of distribution pricing, we need to redirect resource towards key areas of work that require attention which are not currently covered by the scorecards. For example, connection charges, retailer response, consumer impact and issues around consumption data.

As part of this reform, we are aiming to develop more guidance on pricing for distributors in 2024, so we may reintroduce scorecards in some form in 2025. This may pay specific attention to certain areas that we wish distributors to improve upon. Pausing scorecards will give distributors a chance to digest and implement this guidance.

We will keep stakeholders informed throughout 2024, via this website and our Market Brief newsletter, with progress on our work on enabling distribution pricing reform.