Balance point principle guidance

From 1 August 2026, distributors’ pricing methodologies should be consistent with the ‘balance point 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We have developed draft guidance to help distributors apply the principle as set out in the Code. Before finalising the guidance, we are seeking feedback to ensure it’s workable, while achieving the policy intent.

While the guidance is being finalised, we encourage distributors to use the draft guidance to support their understanding of how to apply the balance point principle.

Read more about the balance point principle in Part A of the decision paper.

On 3 August 2026, we extended the due date for providing feedback on the draft guidance. You now have until 5pm, 24 August 2026 to share your views.

We welcome feedback or engagement that may help to improve the guidance, for example, improving clarity or completeness.

If you wish to provide feedback or discuss the guidance with the team in relation to your particular circumstances, email connection.feedback@ea.govt.nz with ‘BPP framework guidance’ in the subject line by 5pm, 24 August 2026.