Further reform of distribution connection pricing

We are seeking feedback on a range of possible issues to address in the next stage of our Distribution connection pricing reform project.

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.

We welcome feedback on these issues, and any others to consider for the next phase our work by5pm, 24 August 2026.

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.