The Electricity Authority Te Mana Hiko has been communicating key decisions and of course, I have been ‘livened-up’ with solar power and the impending installation of new smart panels.
🏆 Why has this excited me?
There are lots of changes in front of us: slow but happening . I can’t talk about them all here in one post because I will overload you but I will bring them up over the next few weeks.
1️⃣ First the hashtagEAA Decisions
Residential connections have been problematic over the past several years. Current new homes have paid way over the odds to connect to the network. The utilities installers have had a profit party with the land intensification of recent years.
Not only have capital contributions been paid but ALSO grossly overcharged installation costs… one of the many factors adding to houseprices (I have seen it to be around $15,000 per house).
Throughout NZ, power-line-companies are effective hashtagmonopolies (massive assets so it is to be expected).
🤔 But they kind of get to charge what they can get out of people.
🤔 The EAA is driving for better price signals (peak and off-peak pricing) – mandatory for large retailers by June 2026.
🤔 Design choices so basic install versus fancier installations: why must you be forced to pay for undergrounding if it isn’t needed: make it a choice.
🤔 And improved coordination of installations: currently it is the first or last mover that pays over the odds. New connection pricing rules start April 2026.
📣 I am saying to EAA (by way of this post):
I for one am happy to pay my fair share of connection costs but it MUST be at market rate. Not at the whim of the monopoly, like the recent Mt Eden case (thanks Rishi) where Vector initially quoted $25,000 for a 3.3-meter connection, it seems that $15,000 was installation NOT capital contributions. I hope you have your eyes on this.
Why must we pay inflated charges for their subcontractors (Omexom and Northpower)? The nonsense ‘project management’ charges we are given beggar belief. Hopefully the drive for ‘clarity and consistency’ will sort this.
🎯 Really excited about:
Time-based charging arriving June 2026: peak vs off-peak pricing finally gives residential consumers control.
The low-user rate phase-out (2022-2027) has been challenging for some, but MBIE data shows 60% of households are better off… they present the numbers rolled up but my reality says that each month low users are paying $15 – $18 more per month. These are generally single households with a fixed income.
When I get my head around the choices I am trying to make on Solar, and the why, I will share it here too… I have my snorkel on and am diving into it.
The chart below is from the October consolation document 2024. Vector is the red line…