Reducing barriers for new connections

We’re seeking feedback on proposals to address inefficiently high up-front charges some face when wanting to connect to distribution networks.

Excessive up-front charges could 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 proposing a targeted intervention to reduce inefficiently high up-front charges. This could unlock more connections, which would mean fixed network costs are shared among a wider group of users.

This would be an interim solution ahead of possible further changes to make connection pricing more efficient across the board.

The intervention would involve identifying where there may be an issue, undertaking deeper examination, and if up-front charges are inefficient, giving the distributor the opportunity to voluntarily amend their pricing methodologies. The Authority would give direction with specific requirements to resolve the issue only if it was unsatisfied with the distributor’s response.

Under this proposal, connection applicants would continue to pay all their costs to connect and their share of the fixed costs over time.

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

Decisions on both issues were deferred in July 2025 when we announced new rules to make connection pricing methodologies more efficient, transparent and nationally consistent and to make connecting to the network easier and faster.

Alongside these proposals, we’re also seeking feedback on minor Code amendments relating to some of the new rules announced in July 2025. This is to ensure that the Code accurately reflects the Authority’s policy intent and to improve clarity and workability.

Feedback on these proposals is due by 5pm, Friday 19 December 2025. Submissions will be published in the week beginning 5 January 2026 with cross-submissions due by 5pm, Thursday 5 February 2026.

Impact on existing network users

Most of the distributors – or their customers – would not be affected by this proposal.

Distributors who would need to amend their high up-front charges may respond to the change by increasing the lines charges for all customers on their network. We expect this increase would be very small. As an illustrative example, in Auckland, we estimate households could initially face an increase of between 22 cents and 66 cents a month (excl. GST).

See our FAQs for more information on these proposals. We’ll update these as we receive and answer new questions.

If you can't find what you’re looking for, please send your question/s to connection.feedback@ea.govt.nz.

If you’d like to be updated when new questions are added, please email us at connection.feedback@ea.govt.nz this address with 'subscribe’ in the subject field.

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.