Changes to fixed contributions for connections
Orion will be increasing its fixed capital contributions, with the changes coming into effect from 1 April 2024.
During 2023 Orion carried out a review of its approach to charges for new or altered connections and extensions to our network. We invited developers to meet with us in November so we could discuss our intended approach.
“We have held our fixed contributions for connections steady over a long period, recognising our region’s need to rebuild following the Canterbury earthquakes. A more socialised approach made sense during a widespread period of rebuilding,” says Orion Head of Regulatory and Commercial Dayle Parris.
With the city rebuild now substantially complete Orion’s focus has shifted to one of decarbonisation and electrification in support of New Zealand's net zero transition target.
“The balance now needs to move further toward a causer pays approach. Our revised methodology ensures that those that create the need for infrastructure build pay appropriately. We believe this is a fair approach that reflects our current environment.”
Orion will assess non-standard or more complex connection types using a revenue cost test from 1 April 2024 to ensure we optimise the balance between causer pays and socialisation. This will include ensuring appropriate allocation of costs for shared network, extensions and augmentation.
Orion owns and operates the electricity distribution infrastructure in Central Canterbury, including Ōtautahi Christchurch.
Our network is both rural and urban and extends over 8,000 square kilometres from the Waimakariri River in the north to the Rakaia River in the south from the Canterbury coast to Arthur’s Pass.
We deliver electricity to more than 225,000 homes and businesses and are New Zealand’s third largest Electricity Distribution Business.
Find out more about how to connect to our network