Connection charge reconciliations

Connection charge reconciliations

The Electricity Authority (EA) has introduced new rules to improve transparency, fairness and consistency in electricity connection pricing across Aotearoa. 

These changes support efficient electrification and long-term fairness between new and existing customers. 

As part of these changes, we must prepare a standardised breakdown of connection charges into: 

  • Incremental costs (the direct cost of connecting you and your share of using some of the capacity available on the network) 
  • Network cost contribution (your portion of the cost of using the shared network) 
  • Incremental revenue (expected lines revenue over time - that you pay via your power bill) 

This is called a ‘connection charge reconciliation.’ 

The reconciliation outcome shows how the connection charge compares to long-term costs and revenue using a consistent national format.  

connection charge reconciliation flowchart

Note: This is mainly a disclosure requirement. It does not automatically change how we 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 primarily to give our regulator, the Electricity Authority, visibility of how connection charges vary from the average around the country - 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 new rules standardise how connection charges are structured and explained, while still allowing prices to reflect local network conditions.
  • The reconciliation is for transparency — it doesn’t change your quote or create a new charge. 

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. 

Find out more here.

 

Standard connection charge reconciliations

If your connection uses standard pricing (for example, a flat charge for a typical residential connection), we will provide a standard reconciliation for a standard connection instead of a bespoke one. This is permitted under the Electricity Authority’s rules and reflects the average costs and revenue for that class of connection. It ensures transparency while avoiding unnecessary modelling for routine connections. 

 

Connection charge reconciliation example

See an example of a connection charge reconciliation for one of our standard priced connection requests.  

connection charge reconciliation example

How to request a reconciliation?

For non-standard reconciliations, please respond to one of the connection process emails and request a reconciliation. 

Request a standard reconciliation

Notes: Connection charge reconciliations are available for jobs submitted to us from 1 April 2026.


If you have applied for more than one standard connection of the same size (for example a four-lot subdivision) you can download one connection charge reconciliation report as this will be the same for each connection. 

If your work is a combination of network ready and standard connections, or multiple standard connections of different have different sizes please enter the details of each connection here to download a connection charge reconciliation report for each connection. 

If you need help downloading your non-standard connection charge reconciliations, please reply to one of the emails we have sent you or contact us. 

Supporting links

Pioneer scheme
Electricity for home and business
Electricity customer connection pricing
Powerco Connect

FAQs

The new rules do not automatically increase or decrease charges for new connections. They change how charges are structured and explained. See more about pricing here.  

The reconciliation is a standardised breakdown required by our regulator to be provided to customers, if they ask for it. It: 

  • Separates direct connection costs from wider network costs. 
  • Shows 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 of your connection or modification. 

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. Find out more about our pricing here.
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 allows us to allocate a share of capacity costs in a more consistent and predictable way. 

An NPV calculation estimates the value today of money that you expect to be received in the future and what you think interest rates will be. 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. 
  • Like a loan where you have to pay interest as well as repaying the loan amount, 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’s part of the regulatory disclosure. 

Find out more information on the disclosure within the connection charge reconciliation here.

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. 

Find out more here.
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 called a pioneer scheme. This makes the connection process fairer over time. Find out more here: link to pioneer scheme page on our website.