The Electricity Authority has recently announced plans to review and potentially reform the high up-front connection charges that have long been a concern for electricity users and infrastructure developers.
The Authority has opened for consultation the document ‘removing barriers for new connections,’ in which it identifies two issues:
- Excessively high up-front connection charges.
- Lack of clear obligations on distributors to provide connections.
The Electricity authority acknowledges that distributors exercise market power as monopolies, resulting in instances of discriminatory pricing. It also notes there is inconsistency and opacity in pricing, evidence of deterred or delayed connections and no regulatory onus for connection obligations
The Electricity Authority recommends:
- Targeted intervention in up-front connection charges: a monitoring system followed by an inquiry phase and ability for authority to direct distributor.
- Introducing explicit distributor obligations to connect and maintain supply: obligation to offer a connection, to publish access standards and connection methodologies and prohibition on withdrawing supply without justified reason and complementary pricing rules.
Property Council knows this has been a long-standing issue for development and we look forward to submitting in support of the Authority’s recommendations. Consultation closes on the 19th of December with implementation estimated for 2028, ahead of more comprehensive reform expected 2030.
If you have any feedback or wish to see the Property Council submission, please contact Bella Leddy.
Author | Bella Leddy
As an Advocacy Advisor, Bella supports the development of policy and advocacy initiatives that reflect the real-world experience of our members.
With a Bachelor of Laws and Politics from Otago University and previous experience as a policy intern at the Department of Internal Affairs, Bella brings both a sharp analytical mind and a genuine passion for public policy. She’s particularly energised by engaging with members to ensure our advocacy is grounded in industry insight and practical solutions.
Extroverted, thoughtful and service-focused, Bella thrives in roles that connect people and ideas. Outside the office, she channels her energy into teaching group fitness classes – including yoga, pilates and spin – and is always up for a good political yarn.
