Gas Distribution Pricing
If you use natural gas, you will have a contract with a gas retailer to supply gas to your home or business.
Vector charges gas retailers for using our Auckland gas distribution network. Retailers usually combine our distribution charges with other costs, including the cost of gas, national transmission services and metering, and include these costs in a single bill.
Each retailer decides how and when to pass Vector's price changes on to its customers. The effect of our distribution prices on an individual customer’s bill will depend on their retailer, their price plan and their gas use.
Our gas prices cover the service we provide to distribute gas through our gas distribution network. Our prices do not include the cost of transporting gas through the transmission network.
The Commerce Commission regulates our gas distribution prices under its Gas Distribution Services Default Price-Quality Path Determination. The fourth gas default price-quality path, known as DPP4, applies from 1 October 2026 to 30 September 2031. We have set our prices to comply with the revenue allowance determined by the Commerce Commission. This revenue allowance includes pass-through and recoverable costs, such as council rates and statutory levies.
From 1 October 2026, our standard gas distribution prices will increase by a weighted average of 12.7% and including non-standard distribution prices, 12.6% overall.
The increase primarily reflects the transition to the new DPP4 revenue allowance including the effect of the Commission’s updated cost of capital and depreciation allowances.
Gas distribution charges make up only part of a customer’s total gas bill. We estimate that our gas distribution charges account for approximately one-third of an average residential bill. The actual proportion will depend on a customer’s retailer, their pricing plan and their gas use.
A residential customer is one where the customer’s metered point of connection is for a home, not normally used for any business activity.
From 1 July 2021 we price new gas connections based on the costs Vector incurs, and Vector contributions are removed. These costs include the new physical connection, and associated gas network costs which arise over time.
Click here for more information about new gas connections.
A commercial customer is defined as a non-residential customer.
From 1 July 2021 we price new gas connections based on the costs Vector incurs, and Vector contributions are removed. These costs include the new physical connection, and associated gas network costs which arise over time.
Customers will pay 100% of project costs upfront. A Vector contribution and rebates will no longer be offered.
Capital contributions are one way that Vector recovers the cost of providing electricity and gas distribution services to customers. For Vector’s gas distribution network, they are determined by our Capital Contribution Policy as published on our website.