Network connections

Network connections project – stage one

Upcoming Open Closed Decision
View cross-submissions Cross-submissions closed 24 January 2025
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Decision

We’re implementing eight of our nine proposed changes to remove barriers and create efficiencies in the application process for connecting distributed generation (like solar farms) and large load (like industrial plant) to networks.

We think these changes will make connecting to the network easier, faster, more equitable and more consistent across New Zealand.

These rule changes support our economy through efficient development of new businesses, electricity and critical infrastructure. They also benefit consumers by reducing the time and cost to deliver new housing, and infrastructure such as public EV charging stations, manufacturing and solar farms.

Many of the proposals have been amended to make the new requirements clearer and more workable for both parties, without changing the intention behind the proposals. These amendments are in response to submitter feedback during the consultation period. We also received advice from the independent Network Connections Technical Group.

The amendments include providing greater flexibility for distributors to collectively design and manage their own connection processes. We note the next stages of this project provide opportunities for further changes if we don’t see meaningful action that supports the intended outcomes.

Our next step is to seek feedback on the draft wording of the new rules to ensure it accurately reflects the decisions. We expect to open this technical consultation in August 2025.

Remaining proposals to be further considered

One of the changes we’re making is adding the application process for large energy users (load) into the Code. The original proposal included an obligation on distributors to connect all applications if certain criteria are met.

We consider there should be obligations for distributors to connect those who seek to connect load. We have considered the feedback we received from industry and want to ensure the obligations are fit for purpose. Therefore, we have withdrawn this part of the proposal and expect to further consult on this issue by the end of this year.

We are also further considering the ‘reliance limit’ to prevent already high up-front charges from increasing further. The ‘reliance limit’ was proposed in the related Distribution connection pricing Code amendment consultation paper in October 2024.

More time is needed to consider these related issues, with input from the sector, to ensure any rule changes lead to the best possible long-term outcomes for all parties, including all New Zealanders.

Most of the new requirements come into effect in 2026 – 12 months after the Code changes have been gazetted. The exception is the load application processes, which will come into effect 18 months after being gazetted. We are planning workshops to help distributors get ready for the new requirements.

This is the first stage of our ‘Network connections project’. Stage two of the project will consider a range of issues, such as export limits set by distributors, application processes for residential solar and the fees access seekers pay for their applications to be processed. Further stages will focus on any remaining issues.

Decision paper

Network connections project (stage one) - Decision paper

Network connections project (stage one) - Decision paper

Consultation

The Code requirements for connecting to distribution networks have served us well in the past. But demands on our networks are changing, and we need future-ready requirements that better serve consumers, distribution businesses, and those wanting to connect to the network or upgrade their existing connection (access seekers). In October 2024, we sought feedback on nine proposed Code changes to improve the application process for connecting to networks.

Consultation paper

Network connections project: stage one amendments - consultation paper

Network connections project: stage one amendments - consultation paper

Webinar

We held a one-hour webinar on Monday 11 November to talk through the proposals in this consultation paper and answer questions. The webinar also included a presentation about the complementary Distribution connection pricing consultation paper. Watch the webinar and read the transcript.

Complementary consultation

Alongside this consultation, we welcome your feedback in the Distribution connection pricing proposed Code amendment consultation.

This consultation runs over the same time period and aims to address some barriers to efficient pricing for connecting to distribution networks.

Together, the proposals across these consultations aim to support more efficient investment in infrastructure, which lowers overall costs to consumers, and supports a growing, thriving and electrified New Zealand.

Correspondence

Submissions

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Cross-submissions

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