electricity pricing

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.  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. 
For further explanation on our transmission pass-through pricing, please refer to our pricing methodology.

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.

Controlled pricing

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.
 

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.

Click here for more information on electricity connections.
Click here for detailed information on capital contributions.