Connection Changes from 1 April 2026
The Electricity Authority – the independent regulator for New Zealand’s electricity industry – has introduced new rules to:
- make connection pricing methodologies clearer and more consistent across the country
- reduce situations where the ‘first’ or ‘last’ customer pays much more than others
- make sure new connections pay their fair share of costs
- improve transparency so customers can better understand what they are being charged for.
These changes apply to all electricity distribution businesses (EDBs, or lines companies) including Centralines, from 1 April 2026. This is the start of a broader journey to bring greater transparency to connection pricing.
As Centralines' pricing approach was already broadly aligned with the new regulatory requirements, most customers will see minimal change to the capital contribution they pay. The main change is improved transparency and standardised documentation.
There are three main changes applying from 1 April 2026. Click on each section below to find out more about the changes
Helpful Links
Applies from 1 April 2026
Electricity distributors including Centralines, must base your connection price on the lowest-cost, technically acceptable solution for connecting you. This is called the ‘minimum scheme.’
What this means for you:
- You will not be charged for upgrades or enhancements you didn’t ask for.
- If you want a higher-spec solution (for example, extra redundancy or future-proofing), you can request it — but you may pay extra.
- You can ask about flexible options (for example, agreeing to reduce load at peak times in exchange for lower costs).
FAQs - Minimum Scheme Requirement
No. The minimum scheme must still meet technical and safety standards. It simply ensures you are not charged for enhancements you did not request. You can choose higher specifications if you wish, at your cost.
The minimum scheme means the least-cost solution for any connection works, defined with reference to the distributor’s connection and operation standards, which should reflect the distributor’s asset management policies and practices.
Customer-selected enhancements are non-standard design configurations requested by the connection applicant and agreed upon with the distributor. For example, a residential customer on a standard tariff requesting increased capacity from a single-phase to two- or three-phase supply would be a bespoke configuration if it falls outside the distributor’s standard design configuration for residential connections. For larger customers, this would involve a discussion with the distributor on the minimum scheme and appropriate connection size.
Other types of customer-selected enhancements may include requests for more expensive routing, underground instead of overhead lines, a different type of pole or requests for a pole moved to a certain location.
Applies from 1 April 2026
Sometimes, the first person to connect in a new area covers the cost of extending the network to supply that area. In the past, later customers could benefit without contributing.
Under the new rules, if a connection triggers a significant extension, the EDB must set up a ‘pioneer scheme’ (with some exceptions, such as real estate developments). Click here for information on pioneer schemes.
Applies from 1 April 2026
Electricity distributors must prepare a standardised breakdown of connection charges into:
- incremental costs (the direct costs of your connection and your share of using some of the capacity available on the network)
- network cost contribution (your share of the cost of using the shared network)
- incremental revenue (expected lines revenue over time, paid via your power bill).
- This is called a ‘connection charge reconciliation’.
Important: This is mainly a disclosure requirement. It does not automatically change how electricity distributors set prices. It standardises how charges are explained and increases comparability.
What this means for you:
- You can request a reconciliation showing how your connection charge is allocated.
- The reconciliation is for transparency – it doesn’t change your quote or create a new charge.
- It may group costs differently from your quote, because it follows a standard format set by the Electricity Authority.
The reconciliation you receive is detailed and complex. It summarises costs, revenue and network capacity components using standardised language. This reflects the standardised format and terminology required under new regulation. If you would like help understanding it, please get in touch with Centralines.
FAQs - Connection Charge Reconciliation
The reconciliation is a standardised explanation of how your connection charge compares to:
- the direct cost of connecting you
- your share of wider network costs
- the expected future network revenue from your connection.
It helps answer the question: “Am I paying more, less, or about the same as the long-term cost of connecting me?”
It is designed for transparency – not to change your quote.
What the reconciliation is:
- a transparency document
- prepared in a nationally consistent format
- required by regulation.
It is not a:
- second invoice
- replacement for your quote
- pricing decision
- recalculation of your price.
Think of it as a translation tool: it takes your quoted charge and maps it into standard regulatory categories so customers, regulators and distributors can all look at connection pricing in a consistent way.
The reconciliation is a standardised breakdown required by regulation to be provided to customers, if requested. It:
- separates direct connection costs from wider network costs
- shows how expected future network revenue relates to the charge.
Regulations require the reconciliation to be detailed and complex; however, it does improve transparency and consistency across the country.
It doesn’t change your quote or create a new charge.
Your quote is designed to explain the physical work and project costs; whereas the reconciliation document follows a regulatory format required by the Electricity Authority. It groups costs differently to allow consistent comparison across all lines companies/electricity distributors and all connections.
The ‘extension cost’ and ‘connection charge’ will likely exclude works contracted directly with the contractor, as Centralines does not have visibility of these charges.
No. The goal of the reconciliation requirement is to:
- provide a consistent breakdown format
- enable monitoring and comparison
- improve visibility of how charges relate to long-term costs.
For standard, repeatable connections (such as basic residential services), using an averaged/standard reconciliation:
- maintains transparency
- avoids unnecessary cost and complexity
- ensures consistent treatment of similar customers.
Yes. Even where a standard reconciliation applies, you can still:
- request a breakdown of the physical works involved in your connection
- ask questions about how the standard fee was determined.
The reconciliation is a regulatory disclosure tool – your quote and project scope remain available and explain the actual work being done. Get in touch with Centralines for details.
General FAQs
For more detailed and additional FAQs, please visit FAQs: New rules for connection pricing methodologies | Electricity Authority
- Connection prices must be based on the lowest‑cost technically acceptable solution (the “minimum scheme”).
- Pioneer schemes must apply where one customer funds network extensions later used by others.
- Customers may request a connection charge reconciliation, providing a standardised regulatory breakdown of charges.
The new rules standardise how capital contributions paid by the customer are structured and explained, while still allowing prices to reflect local network conditions.
The rules do not require all electricity distributors to charge the same prices, and they do not automatically increase or decrease the capital contribution paid by the customer.
New Zealand’s electricity networks differ in:
- geography
- customer density
- existing infrastructure
- historic pricing approaches.
Some electricity distributors may have little change to the amount they charge. Others may need to adjust how they allocate costs, resulting in some rebalancing between the cost customers pay up front for a new connection, and the ongoing charge they pay as part of their power bill. This means impacts for customers may vary depending on where in NZ they are connected.
A connection is when you:
- connect to the electricity network for the first time (for example, a new house, factory or EV charging site), or
- upgrade your existing connection (for example, increasing capacity to electrify machinery or heating).
When you connect, you usually pay:
- an upfront connection charge (a one-off cost), and
- ongoing network charges (as part of your power bill).
It depends on your location and circumstances. The new rules do not automatically increase or decrease charges for new connections. They change how charges are structured and explained. Some customers may see changes if their lines company adjusts its pricing approach; others may see little difference.
The Electricity Authority has introduced new rules intended to improve transparency and consistency in how capital contributions paid by the customer (sometimes called ‘connection charges’) are structured and explained across New Zealand. These changes support efficient electrification while balancing fairness between new and existing customers.
- Talk to Centralines as early as possible.
- Ask about flexible options.
- Ask for a reconciliation if you want to see how your charge is mapped to standard regulatory categories.
- Ask whether a pioneer scheme may apply.
The new rules apply to connection applications received on or after 1 April 2026. The new rules would not apply to an updated quote for a connection application received prior to 1 April 2026.