Pioneer schemes

About pioneer schemes

From 1 April 2026, Orion operates a pioneer policy that allows for fair sharing of the cost of qualifying new electricity network extensions. When a customer (the pioneer) funds an extension to connect to the network, other customers who later connect to that same extension may be required to contribute to the original cost through a rebate payment. Those contributions are then rebated to the pioneer.

Pioneer schemes administration

We have the role of administering pioneer schemes, including collecting rebates, determining whether any later connections will also take on pioneer status, and providing rebates to the pioneer (or pioneers).

Pioneer schemes policy

Our pioneer policy forms part of our overall Connection Pricing Methodology. Section 5 of this policy explains when pioneer schemes apply and how contributions and rebates are calculated. Our policy has been developed to meet the requirements of Part 6 of the Electricity Industry Participation Code.

Read our policy for more information.

Below we have set out some key points for you to know about the policy.

Applying pioneer schemes

We apply pioneer schemes to new network extensions (not network capacity upgrades) where all qualifying criteria are met. In general, a pioneer scheme may apply if:

  • The connection application is made on or after 1 April 2026.
  • The extension did not exist or was not under construction before 1 April 2026.
  • The extension is not part of a property development built for on-sale.
  • The extension is not an underground meshed network.
  • The extension is not for an embedded network.
  • The pioneer’s contribution exceeds the pioneer scheme threshold.
  • It is reasonably likely that other customers will connect to the extension in future.
  • The pioneer has not agreed in writing to opt out of a pioneer scheme.
  • We may also apply a pioneer scheme in other circumstances if we consider it appropriate.

Key criteria for pioneer schemes

It is important to note the following criteria:

  • The pioneer is the customer who originally paid for the qualifying extension.
  • Pioneer status cannot be transferred to another party.
  • Only customers who connect directly to the pioneering works may be required to contribute.
  • Schemes run for 7 years from the date the pioneer first pays their connection charge (unless ended earlier by agreement).
  • A pioneer scheme only applies where the pioneer’s contribution exceeds a minimum value:
    • $50,000 for the year starting 1 January 2026.
    • From 1 January 2027 onward, the threshold is adjusted annually for CPI.
  • Our pioneer schemes recognise first pioneers and subsequent pioneers. A subsequent pioneer is only recognised if it makes a pioneer scheme contribution towards the relevant pioneer scheme of more than the subsequent pioneer threshold:
    • $25,000 for the year starting 1 January 2026.

Active pioneer shcemes

There are currently no schemes in place that qualify under our 1 April 2026 pioneer policy.