Further reform of distribution connection pricing

Upcoming Open Closed Decision

Make a cross-submission Due by 17 September 2026

Consultation

In this issues paper, we are seeking feedback on a range of possible issues to address in the next stage of our Distribution connection pricing reform project.

The submissions received on this issues paper are published below. We now invite cross-submissions, where everyone has the opportunity to respond to the points made by others. There is no template for cross-submissions. Instead, you can email your feedback to distribution.pricing@ea.govt.nz with ‘Further reform – cross-submission’ in the subject line. Cross-submissions must be received by 5pm, 17 September 2026.

Overall, this multi-stage project aims to make connection pricing methodologies more transparent and consistent across the country, and more efficient so all New Zealanders benefit.

We will do this by ensuring connection pricing better reflects underlying costs. This will support efficient connection growth and network investment – benefitting everyone on the network by containing costs and spreading them over more people.

This issues paper explores issues about:

how some connection costs are determined and allocated
pricing methodologies for one-off charges, eg, disconnections
areas not currently covered by existing connection pricing rules, eg, secondary networks
other related issues, eg, the contestability for supplying services, equipment and construction as part of connecting to a network.

Your feedback will help deepen our understanding of the issues, identify areas for reform and clarify which ones are most important. We expect the next steps will be drafting and consulting on proposed amendments to the Code.

This work follows earlier improvements to connection pricing, including the new rules (‘fast-track' measures) for lines companies that started to come into effect on 1 April 2026, and the new framework to prevent inefficiently high up-front connection charges rising further than needed, effective from 1 August 2026.

Webinar

We held a webinar on 13 July 2026 to talk through the issues in the paper, provide an overview of work to date and answer questions. You can watch the webinar video recording below, view the presentation slides and our responses to questions.

Issues paper