Electricity pricing
Vector’s line charges include the cost charged to Vector by Transpower for delivering electricity across the national grid to Vector’s network, and the price relating to the cost of delivering electricity across our distribution network.
Residential
For residential, it is estimated that our line charges account for approximately 35% of an average residential consumer's bill. This includes Transpower's charges which account for approximately 8%. (This is based on MBIE’s Quarterly Survey of Domestic Electricity Prices as at November 2024).
Residential and commercial
We’re required to set our prices to comply with Commerce Commission (Commission) regulations which include the Electricity Distribution Services Default Price-Quality Path (DPP) Determination 2025. The Commission resets the DPP periodically, with 1 April 2025 marking the start of the fourth 5-year DPP (DPP4). For the year commencing 1 April 2025 the Commission sets the forecast net allowable revenue a distributor can earn. On top of forecast net allowable revenue, the DPP allows prices to also change to reflect pass-through costs (e.g. Transpower transmission charges, council rates and statutory levies) and a revenue wash-up from any under or over-recovery of revenue from previous pricing years.
Generally, we bill our ICP based line charges and grid exit point (GXP) based transmission charges to electricity retailers. Electricity retailers then bill you these charges. Your electricity retailer will determine the basis on which the charges are passed through to you.
Electricity price schedules from 1 April 2026
Historical electricity price schedules
See pricing schedules from previous years under "price"
Consumer-led pricing design
We are helping to create a new energy future, and pricing plays an important role. See below for our current pricing ‘roadmap’ which sets out how we are evolving our prices.
Capital contributions
Vector’s line charges are set to recover the costs of owning and operating the electricity distribution network as it currently exists. When you add a new connection or enhance an existing connection on Vector’s electricity distribution network, you will typically be required to pay an upfront one-off capital contribution. This covers the incremental costs that will be incurred by Vector from augmenting the network that Vector would not otherwise face ‘but for’ the new connection or upgrade. That is, the capital contribution would include the full cost of the connection at the point of supply and a development contribution towards the capital investment we make in the infrastructure that supports overall network growth. Charges for new and enhanced electricity connections differ depending on the complexity of the connection.
Electricity connections
See more information on electricity connections
Capital contributions
See more detailed information on capital contributions
Passing through Transpower's transmission costs
The transmission charges directly reflect how much we are charged by Transpower. We use a bulk GXP based pricing method for the recovery of these transmission pass-through costs. Using this method, the transmission price is calculated by an apportionment approach, using each electricity retailers’ consumers’ and directed bill consumers’ historic volume share at each GXP to determine their monthly transmission charges. From 1 April 2025, we will also compare the historic volume share to the actual volume share (due to changes in ICPs and/or volumes through ICPs) and notify a final wash-up amount after the pricing year has finished.
Our transmission charges are published as GXP based charges and can be found in our pricing schedule below.
For further explanation on our transmission pass-through pricing, please refer to our pricing methodology.
Electricity pricing schedule
Our transmission charges are published as GXP based charges and can be found here in our pricing schedule
Pricing methodology
Further explanation on our transmission pass-through pricing
Residential
Time of use pricing
Vector’s pricing has a two-part time of use (TOU) price structure which is used to charge all electricity retailers for their residential ICPs where the electricity retailer obtains interval data (half-hourly consumption data) from each ICP’s smart meter. The TOU structure has a daily fixed price with different volumetric prices depending on the time period when the electricity is used. The peak time pricing is applied 7am to 11am and 5pm to 9pm weekdays in the winter period (01 April to 30 September inclusive). Off-peak pricing applies at all other times. For residential ICPs without smart meters or where their retailer doesn’t obtain smart meter interval data, an anytime volumetric price is charged to electricity retailers providing this is approved by Vector.
TOU pricing means that during peak times our volumetric prices will be higher than during off-peak times, which reflects that 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 between October and March 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 required.
Controlled pricing
Vector maintains residential controlled price categories designed to reward residential consumers for the benefit these households deliver to us in helping to reduce load 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.
We also have a TOU distributed energy resource (DER) tariff for residential and general ICPs with load that can be connected to or respond to our DERMS (distributed energy resource management system). We believe this will give us the flexibility for future load management.
If you want to know whether you’re eligible for the controlled or distributed energy resource price plans and would benefit from making a switch, 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 will see the maximum low user fixed charge increase gradually over five years until it is about the same as the standard fixed charge. Each year, the distributor maximum low user fixed charge 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.
While the regulations are being phased out, it still pays to check with your electricity retailer that you’re on the right plan. If you are a low-use electricity consumer, using less than 8,000kWh per year, the low user fixed charge price categories could still be cheaper for you so it may pay to check with your electricity retailer to see if you are eligible for these price categories.
Your electricity retailer should inform you at least annually of how much energy you use, and whether it may be beneficial for you to switch to a low user fixed charge price category. 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 fixed charge price category, get in touch with your electricity retailer - it could save you money.
Business
Controlled pricing
Changing your Vector pricing category
Our pricing categories depend on the connection type and metering configuration at your property. It may be possible for you to change your pricing category, but you may need to make changes to your connection. Please contact your electricity retailer to find out more.
In line with our symphony strategy to incentivise flexible load and efficiently utilise the use of our network, we have introduced a new TOU distributed energy resource (DER) price category for low voltage, transformer and high voltage consumers. From 1 April 2025, approved commercial DER ICPs can benefit from a reduced capacity charge by effectively deferring load when required by Vector. We believe this will give us the flexibility for future load management.
To qualify, you need to apply for and enter into a DER connection agreement with Vector which is applicable to the site. The ICP needs to be connected to or respond to our DERMS (distributed energy resource management system). Please refer to our pricing schedule effective from 1 April 2025 for further explanation on the initial application process. You can also get in touch with your electricity retailer if you want to know whether you’re eligible for the distributed energy resource price plan and would benefit from making a switch.