A small step forward on electricity connection fees

There is a little progress to report on electricity connection charges. A step.

The Electricity Authority has been doing some work to put the screws on the escalating upward connection fees for new homes. From August, the Authority will be able to scrutinise the prices and methodology that lines companies use to charge for new connections (RNZ, 1 July 2026). Rising costs for new homes are seen as a problem. They have been escalating enormously and are projected to continue. The Authority says it will intervene when it sees a problem.

There are still gaps though. How do people know if their installation is suitably specified? Does the Utilities Disputes Tribunal work for developers now? What happens if you are the first development in an area and have to pay for everything?

But this is a step to the issues being seen. I am seeing a few things move in the right direction now.

It is an extremely complex area: RABs, consumer connections, pass through pricing, contractors, subcontractors, designs, compliance. Someone recently, from within the electricity industry, described the whole industry as “Electrickery.” Hmmm.

The only way through this is transparency, regulators that listen and react, and developers accepting that infrastructure is complicated. We engage client side civil engineers as a matter of course. We do not seem to do the same for electrical connections.

About the author
Kirsty Merriman
For years I would plan houses, travel widely and observe communities. I also had the privilege of working for New Zealand's largest dairy company in both New Zealand and Malaysia. All the while supported by my husband and young daughter. After a while, our roles swapped and we moved to the Arabian Gulf. Meanwhile my passion for property and communities continued to simmer.

Along came COVID and had no choice but to pivot... in the words of Robert Frost, I looked for and "found the road less travelled by" and decided that maybe I could "make [a] the difference".

I look for to find insights and built a few of the houses that we need. This means a saleable house and a profitable and sustainable business.

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