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We have developed draft guidance to help distributors apply the principle as set out in the Code.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 sought feedback to ensure its workable, while achieving the policy intent. The consultation period closed on 24 August 2026. We are now taking the feedback into account as we finalise the guidance.

While the guidance is being finalised, we encourage distributors to use the draft guidance to support their understanding of how to apply the balance point principle.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