Balance point principle guidance

From 1 August 2026, distributors’ pricing methodologies should be consistent with the ‘balance point principle’.

Applying the ‘balance point principle’ means costs of new and upgraded connections are not subsidised by existing network users and new and upgraded connections make a comparable contribution to shared network costs as similar existing connections.

We have developed draft guidance to help distributors apply the principle as set out in the Code. Before finalising the guidance, we are seeking feedback to ensure it’s workable, while achieving the policy intent.

Read more about the balance point principle in Part A of the decision paper.

We welcome feedback or engagement that may help to improve the guidance, for example, improving clarity or completeness.

If you wish to provide feedback or discuss the guidance with the team in relation to your particular circumstances, email connection.feedback@ea.govt.nz with ‘BPP framework guidance’ in the subject line by 5pm, 7 August 2026.