Electricity regulator to clamp down on new connection fees

The Electricity Authority is clamping down on new connection fees charged by lines companies.

From August, the authority will have powers to examine lines companies' pricing methodologies, and will require them to be in line with the industry code.

The changes arrive as charges by lines companies come under increasing scrutiny, although the new rule changes will only apply to new connection costs, rather than ongoing lines charges.

The authority's general manager for networks and system change, Tim Sparks, believed rising costs for new connections were becoming a "problem".

"The authority considers some people are paying very high up-front charges to connect to their local network, without any offsetting cut in their ongoing lines charges," Sparks said.

"This means they're paying more than their share, which can discourage efficient network connections," he said.

Sparks said lifting up-front charges could act as an economic barrier.

"This slows electrification and deters development of EV charging stations, housing, commercial buildings and other infrastructure," he said.

The authority said up-front connection charges in some areas were projected to rise further.

Sparks said the new rules would allow for a targeted approach, but believed the imposition of new rules would act as a deterrent.

"We will intervene only where there's evidence of a problem," he said.

"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."