The Electricity Authority will gain new powers in August to regulate the fees lines companies charge for new electricity connections.
The authority will be able to examine pricing methodologies used by distribution companies and require compliance with the industry code. The regulatory changes apply only to connection costs, not to recurring network charges.
Tim Sparks, general manager for networks and system change at the Electricity Authority, said connection fees were becoming problematic. New customers in some areas pay large initial costs to link to their distribution network while receiving no reduction in their regular network fees.
"This means they're paying more than their share, which can discourage efficient network connections," Sparks said. "This slows electrification and deters development of EV charging stations, housing, commercial buildings and other infrastructure."
Sparks said the authority will intervene only where there is evidence of a problem. "However, while most lines companies won't be directly affected, the new rules and the possibility of intervention should help keep their up-front connection charges in check."
Up-front connection charges in some areas are projected to rise further.