Source: Radio New Zealand
123RF
The electricity sector regulator wants to be able to intervene to control prices for connecting to electricity networks.
The Electricity Authority said some lines companies were charging high up-front costs for connections, which can be a barrier to development, slow down electrification and leave consumers worse off.
The authority’s general manager of networks and system change, Tim Sparks, said high connection fees could affect new housing and commercial developments, EV charging stations and other critical infrastructure.
“Reducing very high up-front charges would help enable and encourage efficient development. Not only is this good for the economy, it means the network costs would be shared among more people on the network.”
He said there were excessively high connection costs in some parts of the country.
“Data indicates a small number of lines companies have been requiring newly connecting customers to pay more than their share,” Sparks said.
He said any controls would be targeted and most of the 29 lines companies and their customers would not be affected.
“This proposal could mean the few lines companies that would be affected respond by increasing their lines charges for existing customers on their network.”
Sparks said any increase would be likely be small, for example in Auckland existing households might initially face an increase of between 22 cents and 66 cents a month.
The regulator is asking for feedback on the proposal along with a move to introduce obligations for when lines companies must offer and maintain connections to their networks.
“We think there should be some obligations for when lines companies must supply electricity. This would provide greater clarity from the outset about lines companies’ obligations for connections.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
