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electricity pricing

Vector’s line charges include both (i) the cost charged to Vector by Transpower for transmitting electricity across the national grid to Vector’s network, and (ii) the price relating to the cost of delivering electricity across our distribution network. It is estimated that our line charges (including Transpower charges) account for approximately 37% of an average residential consumer's electricity bill. If they were separated out, then Transpower's charges which account for approximately 8% of the bill. (This is based on MBIE’s Quarterly Survey of Domestic Electricity Prices as at November 2025).

We’re required to set our prices to comply with the Commerce Commission’s (Commission) regulations, which include the Electricity Distribution Services Default Price-Quality Path (DPP) Determination 2025. The Commission resets the DPP periodically, and 1 April 2026 is the start of the second year of the current DPP period (the current DPP period is known as DPP4).

Under the DPP, forecast allowable revenue is made up of:

forecasted net allowable revenue (set by the Commission and updated through the DPP framework, including a Consumer Price Index (CPI) related adjustment),
pass‑through and recoverable costs (e.g. Transpower’s transmission charges, Council rates and statutory levies), and
a wash‑up account, which accounts for any under‑ or over‑recovery of revenue from previous years.

We set our prices so that forecast revenue from prices complies with the DPP constraints — including the forecast allowable revenue cap and (from the second assessment period onwards) the revenue smoothing limit test for net allowable revenue plus relevant recoverable cost impacts.

Generally, we bill our ICP-based line charges and grid exit point (GXP) -based transmission charges to electricity retailers. Electricity retailers then pass on these line charges to you as part of your electricity bill. Your electricity retailer will determine the basis on which the line charges are passed through to you.

See our price schedules effective from 1 April 2026.
See our price schedules effective from 1 April 2025.

Our previous pricing schedules are available within our pricing disclosures.

consumer-led pricing design

We’re helping to create a new energy future and pricing plays an important role. Our current pricing ‘roadmap’, which sets out how we are evolving our prices, is located here.

Transmission pricingFurther line charge informationOther information

Time of use pricing

Vector’s pricing includes a two-part time of use (TOU) structure that is used to charge electricity retailers for residential and general ICPs where the retailer obtains interval data (half-hourly) consumption data from the ICP’s smart meter. The TOU structure has a daily fixed price and time-dependent volumetric prices that vary depending on the time period when the electricity is used.

TOU peak and off-peak periods (effective from 1 April 2026)

May and September

Peak: every day (Mon–Sun, including public holidays) 17:00–22:00
Off‑peak: every day 22:00–17:00 (next day)

June to August (inclusive)

Peak: every day 07:00–11:00 and 17:00–22:00
Off‑peak: every day 22:00–07:00 (next day) and 11:00–17:00

October to April (inclusive)

Off‑peak: all times (i.e., no peak period applies in these months)

Why the peak and off-peak periods are updated

We now have enhanced low‑voltage network consumption data, which helps us better understand when our low‑voltage network experiences peak demand. This has enabled us to set TOU peak periods that more closely reflect low‑voltage network peaks, where network congestion may occur.

TOU pricing means that during peak times our volumetric prices will be higher than during off-peak times. This reflects the cost of building our electricity distribution network for peak times. For residential standard ICPs, the off-peak variable price is zero cents per kWh, therefore the only distribution line charge during off-peak periods is the fixed daily charge.

TOU pricing, if passed on by electricity retailers, offers residential consumers the ability to reduce their electricity bill by shifting some electricity use from peak to off-peak times. Please contact your retailer to see if they are offering a TOU plan that passes through to you the benefits of our TOU pricing. A smart meter capable of communicating interval data is a minimum requirement to go onto a TOU plan.

Controlled pricing

Vector maintains residential controlled price categories designed to reward (if passed on by retailers) residential consumers for the reduction in load that those households deliver during peak periods.

ICPs need to have an electrical hot water cylinder connected to our load control system to be eligible for the controlled price categories.

From 1 April 2026, Vector has a revised TOU distributed energy resource (DER) tariff for residential and general ICPs that:

have a communicating TOU meter, and
include one or more devices that can be remotely managed off or down by the electricity retailers by at least an estimated 1.2kW of capacity.
Eligible devices can include (but are not limited to) hot water cylinders, EV chargers, heat pumps and pool pumps.

To be able to offer a DER tariff to its customers a retailer must meet the criteria set out in the applicable pricing schedule and policy (including entering into the required load management protocol with Vector). We believe this will give us greater flexibility for future load management.

If you want to know whether your retailers offers a controlled or DER tariff plan and whether you’re eligible for them and would benefit from making a switch, then get in touch with your electricity retailer.

Low user fixed charge

In September 2021, the Government agreed to phase-out the Low User Fixed Charge Regulations from 1 April 2022. These regulations set a maximum low fixed charge of 30 cents per day (excluding GST) that we and your retailer could offer to residential ICPs where consumption is less than 8,000kWh per year. The low user price categories have a combination of low daily charges and higher variable charges when compared with our standard price categories.

Phasing-out the regulations sees the maximum low user fixed charge increase gradually over five years from 1 April 2022 through to 1 April 2026. Each year, the distributors’ maximum low user fixed charges will increase by 15 cents per day (excluding GST). The increase in the fixed line charge will result in a decrease to the volumetric (variable) line charges.

The pricing year commencing 1 April 2026 is the final year of the phase‑out period. It still pays, though, to check with your electricity retailer that you’re on the right plan for your usage.

Your electricity retailer should inform you at least annually of your electricity use and whether switching plans may benefit you. If you want to know how much electricity you use, which price category you are on or whether you are eligible for a low user price category, then get in touch with your electricity retailer - it could save you money.