Future system operation

We are seeking feedback on three alternative models for distribution system operation (DSO) as part of the Future System Operation (FSO) project to inform our decision-making and next steps. ​

The consultation paper considers the expected capabilities and functions needed from electricity distributors, the system operator, aggregators, and/or various third parties.

The three DSO models we are putting forward are:

Model 1: Total TSO model 

The transmission system operator (TSO) is solely responsible for coordinating real-time dispatch. Distributors have a limited role in this model. Effectively, the TSO is the DSO.

Model 2: Hybrid model 

Coordination of real-time dispatch is shared between the TSO and one or more distributors-as-DSOs. Both the TSO and distributor/s have significant DSO responsibilities.

Model 3: Total DSO model 

One or more distributors-as-DSOs are responsible for coordinating real-time dispatch. The transmission system plays a supporting role in this model, but effectively one or more distributors are the DSO.

We prefer the hybrid model, as this is likely an efficient and reasonably affordable model and would likely facilitate the uptake and connection of DER for the benefit of consumers. However, we are considering all proposed models equally and would like to encourage all interested people and parties to submit their feedback on this consultation.

This consultation follows on from our discussion paper, Future operation of New Zealand’s power system, which sought feedback on several potential issues that could impact future system operation.

We welcome your feedback on the models by 5pm, Tuesday 19 August 2025.