Property Council is preparing a submission on the Electricity Authority's latest consultation on Distribution Connection Pricing Reform. So, what exactly is changing – and why should the property sector care?
Towards a more enduring connection pricing framework
As New Zealand electrifies and demand for new housing and commercial development grows, connecting to the electricity network is becoming an increasingly important part of the development process. However, connection charges can vary significantly between electricity distributors and often lack transparency, making them difficult to predict, understand and compare.
The Electricity Authority is now consulting on the next stage of reforms to establish an enduring connection pricing framework beyond 2030, replacing the current interim arrangements introduced earlier this year. The consultation considers both how the cost of a connection is calculated (the costing methodology) and how those costs should be allocated between new connection applicants and existing network users (the allocation methodology).
It also seeks feedback on several areas not yet addressed by the current framework, including where the boundary should sit between connection costs and broader network development, how one-off charges such as network modifications should be treated, and whether the regulatory framework should apply to secondary networks—such as those serving some subdivisions, town developments and business parks—which are currently exempt from many of the connection pricing requirements.
What does this mean for Property Council members?
Electricity connection charges are a significant upfront development cost that can influence project feasibility, investment decisions and ultimately the cost of delivering new homes and commercial developments. Greater transparency, consistency and cost certainty will help developers better plan projects and reduce unnecessary barriers to growth.
Property Council supports reforms that create a connection pricing framework that is transparent, predictable and nationally consistent. Our submission will advocate for connection charges that are cost-reflective, ensuring developers pay only for the efficiently incurred incremental costs their developments create—not broader network investment that benefits future users. We also want to see clearer pricing methodologies, better transparency through itemised connection quotes, nationally consistent approaches across distributors, and stronger incentives for distributors to manage costs efficiently and engage constructively with connection applicants.
Ultimately, the framework should support efficient infrastructure investment while reducing unnecessary barriers to housing and commercial development.
What happens next?
Submissions close on 24 August 2026, after which the Electricity Authority will consider feedback before consulting on proposed amendments to the Electricity Industry Participation Code.
If you have experience with electricity connection pricing, or would like to contribute to Property Council’s submission, we’d love to hear from you. Member feedback helps ensure our advocacy reflects the practical challenges facing the property sector. Please get in touch with Bella to share your views.
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.
