Reducing barriers for new connections

This consultation sought feedback on three related proposals that are part of our work to reduce barriers to connecting to networks:

1. An interim solution to address inefficiently high up-front connection charges (Part A of the consultation paper)
2. An approach for clarifying and introducing obligations on distributors so it’s clear when they must offer and maintain connections (Part B of the consultation paper)
3. Minor Code amendments to ensure the Code accurately reflects the Authority’s policy intent and improve its clarity and workability (Part C of the consultation paper).

After considering feedback, we have made the following decisions. For more information, please read our decision paper.

Part A: inefficiently high up-front connection charges

Inefficiently high up-front charges can deter business growth, new infrastructure, housing development, and slow electrification of the economy. However, data indicates a small number of distributors have been requiring newly connecting customers to pay more than their share. We’re introducing a new framework under the Code that will enable the Authority to examine distributors’ pricing methodologies and require them to be adjusted to comply with the new ‘balance point principle’.

This will stop inefficiently high up-front charges from increasing further than needed, giving connection applicants greater certainty on what they can expect to pay. The intervention is set to expire in 2030, although directions made under the intervention may continue after this date. It is intended to be an interim measure while we consider the need for a more comprehensive and enduring solution.

The targeted intervention comes into effect on 1 August 2026. It involves the Authority screening to identify where there may be an issue and undertaking deeper examination. If the up-front charges are inefficient, and the costs do not outweigh the intervention, the Authority can give the distributor the opportunity to voluntarily amend their pricing methodologies. The Authority will give a direction with specific requirements to resolve the issue only if it was unsatisfied with the distributor’s response.

With this measure in place, connection applicants will continue to pay all their costs to connect and their share of the fixed costs over time, as intended.

We will release draft guidance in early July that details how we expect the solution to be implemented. We invite feedback on this draft guidance to help us ensure it is workable for distributors, while meeting the policy intent.

Part B: distributor supply obligations

We also sought feedback on our proposed approach for clarifying and introducing obligations on distributors so it’s clear when they must offer and maintain connections.

Following feedback, we think our proposed approach is broadly sound. We have decided to take a more gradual approach to developing these obligations further to allow for the new rules for connection charges to be established. We have further decided to monitor distributors’ supply of new connections, and will revisit this approach if needed. No Code amendments are required at this stage.

Part C: minor Code amendments for earlier ‘fast-track’ measures

In March 2026, we announced minor Code amendments for the four ‘fast-track' measures, which were the first set of new rules from our broader project to improve connection pricing methodologies. Three of these new rules came into force on 1 April 2026, with the other new rule coming into effect on 1 April 2027.

The minor Code amendments ensure the Code accurately reflects the Authority’s policy intent and improve its clarity and workability. Read our decision paper for more on these amendments, including feedback received, our response and the Code wording.

Related decision: WACC estimate for connection charge reconciliation

In March 2026, we also sought views in a separate consultation on a further proposed change to the associated information disclosure requirement, which is one of the ‘fast-track’ measures that came into effect in April 2026. Our decision is detailed in the decision paper below.

Part A – For those connecting to networks

The interim measure targets only instances where there is evidence of inefficient up-front connection charges. However, the new rules will help ensure lines companies with efficient up-front connection charges continue to keep them within efficient limits.

Where a distributor is directed to adjust its methodologies, it must apply the new, compliant methodology to quotes received for new (or upgraded) connections onwards from that point in time.

We have recently extended the existing dispute resolution to include those seeking to connect to networks. If you think your lines company has not complied with the new framework, you can report a breach on this webpage.

On Monday 17 November 2025 we held a webinar to provide a high-level overview of the proposals in this consultation paper. Watch the webinar recording and view the slide pack.

Our responses to the questions received during this webinar can be found in our FAQs: proposals to address up-front connection charges and distributor obligations.