electricity prices effective from 1 April 2026

Pricing Disclosure pursuant to the Electricity Distribution Information Disclosure Amendment Determination 2024

Every year, we review our electricity line charges to ensure they align with the costs involved in delivering electricity to our consumers. Any price changes not only include costs associated with electricity distribution across our network, but also the costs charged to Vector by Transpower for transmitting electricity across Transpower's national grid to Vector’s network.

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, with 1 April 2026 marking the second pricing year of the fourth 5-year DPP period (the current DDP period is known as DPP4). For the year commencing 1 April 2026 the Commission sets the forecast net allowable revenue a distributor can earn. On top of forecast net allowable revenue, the DPP framework allows prices to also change to reflect pass-through costs (e.g. Transpower’s transmission charges, Council rates and statutory levies) and recoverable costs (e.g. IRIS1, wash-up drawdown amount and quality incentive allowance).

Generally, we bill our ICP2 -based line charges and grid exit point (GXP) -based transmission charges to electricity retailers. Electricity retailers then pass on these charges to you as part of your electricity bill.

Price change

From 1 April 2026, our ICP-based line charge prices (i.e. excluding transmission charges) are increasing by a weighted average of 7.8%3 This increase can be largely explained by the annual rate of change and the related CPI. However, the impact on individual retailers may vary from the weighted average price increase due to differences in ICP customer mix, consumption, and peak and off-peak consumer usage profiles.

We have performed bill impact analysis to assess the combined impacts of price and forecasted quantity changes, which takes into account the updated mass market4 time of use (TOU) peak hours applicable from 1 April 2026. Our residential (billed to retailers) ICP bill impacts analysis indicates that 97% of residential ICPs have a bill impact (excluding transmission) less than $10 per month based on forecast profiles generated using historical consumption and the updated peak and off-peak consumption assumptions. Furthermore, the typical/median monthly bill change is approximately $6.

Incremental rolling incentive scheme.
ICPs are points of supply connection between the local network and consumers.
Weighted average price change is calculated by applying the 1 April 2026 prices to the forecast quantities of the same price category codes from the previous pricing year (base year), then comparing to the change in revenue by applying the 1 April 2025 prices to the same forecast quantities of the base year.
Consist of the residential and general ICPs.

Please note that the ICP bill impacts can potentially be reduced if consumption shifts from peak to off peak periods as chargeable quantities would reduce.

Our transmission charges are bulk charged at a GXP level to electricity retailers. This is a direct pass through of Transpower charges to Vector. Please refer to Transpower’s explanation of their charges here.

Your electricity retailer will determine how they pass our line charges and Transpower costs through to you.

For further information on our price change, please refer to our pricing methodology, see www.vector.co.nz/about-us/regulatory/disclosures-electricity/pricing-methodology.

Pricing design changes

Vector’s price design changes that are effective from 1 April 2026 are to:

Adjust the low residential user fixed daily line charge from $0.75 to $0.90 per day in accordance with the Low User Fixed Charge Regulations.
Amend our mass market TOU periods.
Implement negative injection charges for eligible residential and general ICPs.
Revise the eligibility criteria for the residential distributed energy resources (DER) price category.
Remove the demand charge for the commercial DER price category.

For further information on our pricing methodology used to set prices, see www.vector.co.nz/about-us/regulatory/disclosures-electricity/pricing-methodology.

For further description of our line charges and how they are applied, see www.vector.co.nz/personal/electricity/about-our network/pricing or www.vector.co.nz/business/electricity/about-our-network/pricing.

The following tables are a summary of Vector's Northern and Auckland electricity network charges. All prices are exclusive of GST.