New Rules Unlock Network Connection Barriers To Support Electrification
The changes are the first steps in the Authority's work to make it easier and more efficient for businesses, developers and other consumers to get access to the electricity network so communities and the economy can benefit.
The Authority consulted on a package of changes late last year, with a focus on reducing the time and cost to connect infrastructure such as public EV charging stations, manufacturing, and solar farms.
Authority General Manager Networks and System Change Tim Sparks says standardised rules about how the 29 lines companies process connection applications and how they develop and structure pricing for new and upgraded connections are vital to getting more electricity into the network and reducing costs.
"Inconsistencies and inefficiencies in the application processes and pricing methodologies across New Zealand's 29 lines companies can add unnecessary time and cost to projects, particularly for those who want to operate in multiple regions," Sparks said. "The changes we've announced today will help address these issues and unlock more of the barriers to electrification.
"Under the new rules, lines companies must offer the least-cost, technically acceptable solution," Sparks said. "Any extra costs to enhance the connection - for example running the connection underground - will be paid for by whoever requested it. This ensures people aren't paying for other network costs they didn't ask for."
The Authority's changes include introducing processes for larger users wanting to connect - such as an EV charge point operator or a public transport operator electrifying its fleet - including setting timeframes for decisions. To date, large energy users haven't had baseline protections because the rules have only applied to electricity generators directly connecting to the network. Providing a clear and consistent process will increase transparency and certainty for those needing to connect and make the process more efficient for everyone involved.
"We have been working with the Commerce Commission and industry on these improvements, which we believe will increase transparency and consistency and address some known issues. Overall, we expect both lines companies and those needing to connect will benefit from more efficient connection processes. All New Zealanders will benefit over time through increased choice and value as more services and infrastructure come online sooner."
The Authority is introducing eight new requirements to improve the network connection application process and four new connection pricing requirements. The Authority is further considering two of the rule changes originally proposed in last year's consultation papers to ensure they fully and effectively address the issues they are intended to resolve. They are:
- the 'reliance limit', which aimed to prevent already high-upfront charges from increasing further
- creating an obligation for distributors to connect all applications that meet certain criteria.
The Authority expects to further consult on these two further potential changes before the end of the year.
The Authority is now seeking feedback on the draft wording of the new connection pricing rules to ensure it accurately reflects the decisions made. The technical consultation on the draft wording of the new rules for connection application processes will open in August.
Most of the requirements for new connection pricing methodologies come into effect on 1 April 2026 to align with any other distribution pricing changes, as well as with the Commerce Commission processes. The new requirements for the connection application processes come into effect in the second half of 2026, allowing 12 months after the changes have been gazetted. The exception is the application process for large consumers, which will come into effect 18 months after being gazetted, as this involves entirely new processes that need to be developed.
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