“Connections to EDB networks are critical for success in other areas, such as driving uptake of solar generation or rolling out charge points for electric vehicles,” he said.
Energy Minister Simeon Brown. Photo / Mark Mitchell
“These are exactly the kinds of options that help households and businesses manage their own energy costs, and EDBs have an important role to play in making them straightforward and affordable to connect.”
To achieve these outcomes, EDBs needed to address the challenges of scale and fragmentation, he said.
“While the Government remains of the view that forced amalgamation is not required at this time, the variable size and relatively large number of EDBs must not be an impediment to better outcomes for the consumers who ultimately pay for it,” Brown said.
“There remains a clear opportunity to address fragmentation, lift performance and reduce duplication and unnecessary cost through stronger collaboration and standardisation between distributors, including the sharing of capability, data, tools and good practice,” he said.
Brown’s letter was sent in response to a reply to another letter from former Energy Minister Simon Watts to the representative body, Electricity Networks Aotearoa (ENA).
The ENA’s initial response outlined how the EDBs already collaborate and committed to 13 new initiatives earlier this year.
Asked for comment, ENA chief executive Tracey Kai said: “We are taking time to digest this now and all lines companies will come together to determine if our current work should be amended or added to.”
Brown acknowledged the positive work underway but that it was clear further improvement was needed.
“With power prices rising and lines charges making up a growing share of what New Zealanders pay for electricity, keeping distribution costs in check is a priority,” he said.
Brown’s letter comes as dozens of renewable energy projects get underway.
Distribution and transmission costs make up just over 30% of the average power bill.
These costs – regulated by the Commerce Commission – started rising in 2025 and are set to keep rising until at least 2030.
The increases are aimed at funding repairs and upgrades to electricity networks.
The EDBs operate under a range of ownership models, including trust, council, private and mixed arrangements.
The top six EDBs are Vector, Powerco, Orion New Zealand, Wellington Electricity, Unison Electricity and Aurora Energy.
The electricity sector is under the spotlight this election year as household power bills continue to rise, mostly because of the higher distribution costs.
Stats NZ’s Consumers Price Index increased 3.1% in the 12 months to March, with power (up 12.5%) being the largest contributor.
Wholesale power prices this winter are low, thanks to well-stocked hydro lakes, and are expected to decline over the next few years once a raft of new power projects come on stream.
Actual power generation accounts for about 39% of consumers’ power bills.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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