The Authority’s analysis shows that the way electricity distribution is currently being priced is not encouraging consumers to invest in the right technology at the right time. If this situation does not change, it could cause $2.7 to $5 billion dollars of wasted investment over the next 10 years.

Chief Executive Carl Hansen says, “New technology is giving people more choice and control of their electricity use than ever before. These technologies could bring substantial benefits and New Zealand is very well placed to take advantage of them, since we have a competitive retail market and more than 80 per cent renewable generation.”

“It’s important that the pricing of distribution services encourages people to make choices about new technology at the right time, both for their particular circumstances and for New Zealand as a whole.”

Mr Hansen says, “New Zealand’s competitive retail market means our retailers move quickly to offer new services and pricing deals, in response to changing consumer demands. Over the longer term, as the prices of solar panels and batteries decline, the competitive market will respond with lower prices for electricity supplied from the grid.”

“It’s good to see that many distributors are already considering these issues. We don’t believe there is a one-size-fit all solution, but we are encouraging all distributors to talk to their customers and start developing pragmatic future options. Keeping the status quo will not provide long-term benefits to consumers.”

The consultation period runs until 2 February 2016.

Consultation documents


For more information:


Nicky Chilton
Communications Manager
021 321 831

Leah Chamberlin
Communications Adviser
021 073 7777

Notes to editors

  • Electricity distributors provide the power lines and associated infrastructure used to deliver electricity from the national transmission grid to consumers’ premises. 
  • When consumers purchase electricity delivered via their local distribution network, they are paying for the electricity and the metering and transport services required to measure it and deliver it (and of course for GST and the Electricity Authority levy).
  • Distributors collect around $2.8 billion in revenue each year to recover the capital and operating costs of their networks.
  • Distribution charges currently make up around 25% of a residential electricity bill.

The Electricity Authority is an independent Crown Entity with a statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.