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.

So, charges could stay similar, or move up or down, but it will depend on your location and circumstances.

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
• hows how expected future network revenue relates to the charge.
  
  

While the regulations require the reconciliation to be detailed and complex, 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.

The reconciliation follows a regulatory format required by the Electricity Authority. It groups costs differently to allow consistent comparison across all lines companies and all connections. 

For more information about understanding your reconciliation, check out our explainer. 

Network capacity is the ability of the wider network (lines, transformers, substations) to carry electricity.

When you connect, you use some of that shared capacity. The new rules allow lines companies to allocate a share of capacity costs in a more consistent and predictable way.

An NPV calculation estimates the value today of money expected to be received in the future. In simple terms:

• When you connect, you will also pay ongoing network charges over time (as part of your power bill).
• The reconciliation compares the upfront charge with the expected future revenue from your connection.
• Because future money is worth less than money today, it is adjusted to a 'today value’ (or ‘net present value’).
  
  

This helps assess whether new connections are paying their ‘fair share’ overall.

You do not need to calculate this yourself — it is part of the regulatory disclosure.

More information on this disclosure within the connection charge reconciliation is found in the connection charge reconciliation explainer.

The rules aim to reduce unfair cross-subsidies over time. However, lines companies are shared systems. Costs are spread across many users within communities, and complete separation is not always practical or efficient.

The new rules are designed to make these cost allocations more transparent.

No. The minimum scheme must still meet technical and safety standards. It simply ensures you are not charged for enhancements you may not need.

You can choose higher specifications if you wish, at your cost.

If you are the first person to fund a network extension, later users who benefit from that extension may contribute to you through a formal arrangement via the lines company.

This makes the process fairer over time.

Lines companies can deliver new connections in different ways.

Some lines companies manage the entire process directly with connecting customers — including design, pricing and construction coordination.

Others use accredited third-party contractors or developers to design and build the connection assets. Once the assets meet required technical standards, they are transferred (‘vested’) into the lines company’s network.

Both approaches are established models used across New Zealand. The choice of model often reflects:

• the size and geography of the network
• the types of connections typically undertaken (for example, subdivisions vs. one-off industrial connections)
• historic contracting and delivery arrangements.
  
  

What this means for customers

The delivery model can affect:

• who you contract with for the construction work
• when detailed construction costs are provided
• how information is presented at different stages.
  
  

However, regardless of the delivery model:

• the lines company sets the technical and safety standards
• the lines company is responsible for how assets integrate into the network
• the lines company must comply with the Electricity Authority’s connection pricing rules.
  
  

What this means under the new connection pricing requirements

The new connection pricing rules apply in the same way across all lines companies.

This means that, whether your lines company works directly with you or through a contractor:

• the minimum scheme requirement still applies
• pioneer scheme requirements still apply where relevant
• a connection charge reconciliation must be available on request
• pricing must follow the required regulatory methodologies.
  
  

In third-party delivery models, you may receive:

• a construction quote from a contractor or developer, and
• a regulatory reconciliation from the lines company.
  
  

These documents serve different purposes. The construction quote explains the physical work being carried out. The reconciliation explains how the connection charge is presented under the standard regulatory framework.

If you are unsure who to contact at any stage, your lines company can explain the process and clarify responsibilities.

What the reconciliation will show if you negotiate the physical works with a third-party contractor

You will most likely find that the ‘extension cost’ and ‘connection charge’ both exclude the works contracted directly with the contractor, as the lines company does not have visibility of these charges.

If your connection falls under a ‘standard posted connection fee,’ the Electricity Authority allows lines companies to prepare a ‘standardised reconciliation’ instead of a customer-specific one.

This is because the charge is already:

• pre-set
• published
• applied consistently to a defined category of connections.
  
  

The Electricity Authority’s reconciliation requirement is about transparency and consistency. Where a standard fee applies, a standard reconciliation can meet that requirement.

A standard reconciliation for standard rate connection fees typically shows:

• the average incremental cost of a standard connection
• any allocation of network capacity costs
• the expected average incremental revenue over time
• how these balance on a net present value (NPV) basis.
  
  

It represents the typical cost structure for that class of connection, rather than modelling each individual household or small commercial job separately.

More information about this can be found in our connection charge reconciliation explainer. 

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.