Default distributor agreements

Proposed changes to the default distributor agreement

Upcoming Open Closed Decision
View submissions Submissions closed 31 July 2024
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Decision

We have considered all submitter’s feedback and decided 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.

Consultation

We sought feedback on four proposed clauses to improve the default distributor agreement (DDA). Submissions are published below; thankyou to all those who provided a submission. We will incorporate your feedback into our decision process.

The proposed changes are to:

  • revise DDA clause 9.10 (Reduction of charges due to electricity supply interruption) to align the Authority’s approach with the regime in Part 4 of the Commerce Act. This is so distributors are not penalised twice through revenue reduction for both service interruption and under the quality incentive scheme.
  • revise DDA clause 33.2 (definition of ‘use of money adjustment’) to reduce potential implementation costs for distributors through simplifying interest calculations and dates around invoicing.
  • create a new Code clause 12.6A (Retailers must pass-through reduction in distribution charges) to require retailers to pass-through electricity supply interruption charge reductions to consumers.
  • create a new DDA clause 9.11 (Reduction of charges due to state of emergency) to reduce distribution charges in states of emergency where a consumer can’t access electricity and have sought disconnection but their supply can’t be disconnected.

These four proposals aim to reduce distribution charges to consumers for periods of electricity supply interruptions, including during national emergencies, and ensure these reductions are passed on to consumers. They also simplify provisions relating to use of money adjustments.

This consultation is a follow-up to the consultation last year on a broader range of proposals to improve the DDA and consumption data templates.

We decided to change the Feedback on these four proposed changes informed our final decision paper and changes implemented as part of this consultation.

Consultation paper

Follow-up consultation - proposed changes to the default distributor agreement

Follow-up consultation - proposed changes to the default distributor agreement

Submissions

Download all submissions (.zip)