Property Council has submitted to the Electricity Authority on its consultation paper on further reform of distribution connection pricing, backing an enduring, nationally consistent framework beyond the 2030 expiry of the current interim arrangements.
Why this matters to members
Developers often need to commit to a project before they know the final cost of connecting to the electricity network. Members have reported quotes changing significantly with no itemised explanation, in one case a transformer upgrade estimate nearly doubling from 250,000 dollars to 450,000 dollars, causing a two-month delay. Property Council’s submission argues this pattern of unexplained cost increases is not limited to one project or one distributor and is adding real risk and cost to development.
Individually, central government taxes, local government rates, rating differentials, financial contributions, development contributions and targeted rates may each look manageable. Combined, they can significantly undermine the viability of projects. A more strategic, disciplined approach to infrastructure funding is needed, one that looks at the full stack of charges a development faces, not just each one in isolation.
Our recommendations
Property Council largely supports the Authority’s proposed reform options and recommends the following.
- Progress all seven costing methodology options (A1 to A7), with mandatory itemised costing and construction risk allocation as a minimum foundation.
- Extend cost transparency and costing requirements to developer-initiated network modifications.
- Require distributors to publish standardised reconciliations comparing estimated and actual connection costs for larger projects.
- Ensure vested asset contributions from developers, such as cabling or transformers, are properly recognised and offset.
- Progress all nine allocation methodology options (B1 to B9), so developers fund only the infrastructure their development needs rather than broader network growth.
- Introduce an upper limit on network cost contributions for large connections, while preserving the ability to negotiate discounts that keep marginal projects viable.
- Develop national principles to clarify the boundary between connection-led works and broader network development, so decisions are consistent and transparent across the country.
- Extend equivalent protections to developers connecting through secondary networks, such as pocket networks on subdivision-scale developments.
- Introduce mandatory timeframes for connection quotes, approvals, disconnections and downgrades, and require distributors to publish self-service capacity information.
What's next
Property Council will continue to engage with the Electricity Authority as this work progresses and will keep members updated as the framework develops.
The full submission is available here.
For more information, contact Senior Advocacy Advisor, Bella Leddy.
Author | Bella Leddy
As a Senior Advocacy Advisor, Bella leads 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.