Gas Distribution - 2021 Capital Contributions Policy

Network Updates
Vector’s gas network is a regulated business, which means our price changes are governed by the Commerce Commission. As we have reviewed these pricing changes, we have carefully considered the balance we must strike for our customers, particularly in these challenging economic times. 

For several years we have been experiencing unprecedented growth in Auckland, and enabling this growth has required us to make significant investments into network integrity and reinforcement. To ensure we are able to continue to make these investments, we have made the decision to update our policy by moving to a 100% customer contributions policy for our gas distribution business. This update will result in the costs of new network connections being borne by the customers requesting them, and Vector contributions being removed. These costs include the new physical connection, and associated gas network costs which arise over time.

These capital contribution policy changes take effect from 1 July 2021 and will result in price increases for customers requesting new connections to the gas network (for example subdivisions, individual site requests and other developments). It will also ease pressure on ongoing line charges for all our customers.

Vector remains committed to supporting Auckland’s growth, and we believe this pricing change will ensure we can continue to deliver a safe, resilient, and reliable network for our customers.

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