Shock to the system: Big changes for electricity distributors on the horizon (or closer)

The Electricity Authority (Authority) is progressing significant reform to the rules for distributor’s pricing methodologies and connection processes under the Electricity Industry Participation Code 2010 (Code). These changes are being implemented on a staged basis from April 2026 through to June 2027. We think now is a good time to remind distributors of what’s coming up and when.

Below is a timeline setting out, at a high level, the upcoming reforms and some of the key deliverables for distributors. We have also provided links to relevant pages of the Authority’s website.

The reforms are part of the Authority’s programme to:

Improve consistency in distributor connection processes and pricing;
Make better use of existing network capacity;
Provide clearer signals to customers about the cost of network connections with transparency; and
Support the connection of new load and distributed generation at pace, without inefficiently increasing costs for existing customers.

1 April 2026	Negative charges for consumer-supplied electricity at peak times Distributors must offer negative charges (rebates) when residential and small business consumers (annual consumption < 40,000 kWh) export electricity to the distribution network at peak times.^[1]Key deliverable: Compliant pricing methodology and prices for the 2026/27 pricing year (and beyond).
	Time-of-use (TOU) pricing Distributors who have TOU price plans must apply those plans to customers in the relevant category who have smart meters.^[2] Neither TOU price plans nor smart meters are mandatory, however. Key deliverable: Migration of customers to applicable TOU price plans if offered and smart meter installed.
	Connection pricing for load: Connection charge reconciliation Distributors must provide connection applicants with connection charge reconciliations on request or when providing quotes for connection charges.^[3] A reconciliation breaks down the components of the connection charge and shows how the connection charge relates to net incremental cost. Key deliverable: Connection charge reconciliation templates; Posted capacity rates (required for reconciliation despite capacity costing requirements not commencing until April 2027).
	Connection pricing for load: Pioneer schemes Distributors must operate pioneer schemes that compensate first mover customers (pioneers) who fund a network extension that later customers subsequently connect to.^[4] The subsequent customers contribute to the capital cost of the extension incurred by the pioneer. Key deliverable: Pioneer scheme policy; Published information about pioneer schemes on network.
	Connection pricing for load: Connection enhancement cost allocation Distributors must offer connection applicants the ‘relevant minimum scheme’ when assessing and pricing load connections. The relevant minimum scheme is the least-cost technically acceptable solution for connecting an applicant to the distribution network, with any enhancement costs allocated to the selecting party rather than being socialised across other network users.^[5] Key deliverables: Minimum scheme rules in connection and operation standards; Posted extension rates (if any).
May 2026 (approx)	10 kW export limit for residential connections The Authority has consulted on a proposal to mandate 10 kW as the lowest export limit for residential connections with distributed generation, unless there are voltage or safety issues.^[6] The Authority expects to make a decision in April 2026 and has proposed a one-month transition period. Key deliverable: Updated connection and operation standards.
1 December 2026	Network connections: Processes for connecting distributed generation (DG) Four updated or new application processes for DG connections of different sizes, with process differentiation based on maximum export capacity.^[7] Greater process differentiation between mid-size and large DG. Key deliverables: Updated published DG connection application processes, including updated application forms.
	Network connections: Published information requirements Distributors must publish new information about network congestion, network capacity and applications to connect DG and load.^[8] This includes a network connections pipeline covering at least large DG and load connection applications, showing each application’s position in the queue and progression through the connection process. Key deliverables: Updated connection and operation standards, including global connection queuing and management policy (if adopted); Updated network congestion information; New network capacity information; New network connections pipeline.
1 April 2027	Connection pricing for load: Capacity costing New rules standardise when and how network capacity costs may be allocated, based on posted capacity rates per network tier and zone.^[9] Posted capacity rates are subject to a two-year lock-in period. Key deliverable: Posted capacity rates.
1 June 2027	Network connections: Processes for connecting large load Two new application processes for large load (> 69 kVA), with process differentiation based on capacity. Key deliverables: New published application process information, including new application forms.

The Authority is currently consulting on a further pricing methodology for load connections, which is to cap connection charges at a “balance point”.^[10] The proposed balance point principle is that “the contribution to shared network costs from new connections is commensurate with the contribution from existing connections.” The proposal is to empower the Authority to amend a connection charge that contravenes the balance point principle. The primary consultation period has expired, but cross-submissions are open until 23 February.