Delivery prices are used to charge electricity retailers in the region served by Network Tasman. Electricity retailers determine how to allocate this cost together with energy, metering and other retail costs when setting the retail prices that appear on consumers' power accounts.

Network Tasman's discounts are credited directly to consumers' power accounts for eligible connections twice per year. The first discount is based on usage from 01 April 2026 to 31 August 2026, and the second discount is based on usage from 01 September 2026 to 31 March 2027. Consumers connected to the Nelson network (formerly Nelson Electricity) are not eligible for discounts.

Most residential consumers and some small businesses (those with a maximum delivery capacity of 15kVA) are Group 1 consumers. Group 2 consumers have a delivery capacity between 20kVA and 150kVA, and Group 3 consumers have a capacity greater than 150kVA.

Each month Network Tasman receives settlement residue payments from Transpower (the operator of the national transmission network).

These settlement residue payments occur because the wholesale electricity market (wholesale market) produces surplus funds. The wholesale market is settled each month using half-hourly spot prices. Downstream spot prices are generally higher than upstream spot prices, due to transmission losses and congestion. These price differences mean consumers pay more for electricity than generators receive. As a result, after wholesale market settlement, surplus funds are left over: the settlement residue.

Transpower must pass on this settlement residue to its customers (including Network Tasman). If Transpower
retained these funds then it would over-recover its costs, ie, customer payments in aggregate would exceed Transpower’s transmission network costs.

Similarly, Network Tasman is required to pass on the settlement residue we receive on to our customers (electricity retailers and directly billed customers) in proportion to the transmission charges each customer pays to Network Tasman. The full methodology for passing on these revenues is set out in our annual pricing methodology.

In addition to disclosing our allocation methodology, we are required to publish an annual breakdown of the settlement residues we have paid to each of our customers. Our disclosures are available below.

The electricity sector is entering a time of change and opportunity as a result of climate change, decarbonisation and the growing use of distributed energy resources. In this context, distribution pricing can contribute to better investment in and use of distribution networks, provide better signals to consumers as they consider investing in their own distributed energy resources, and help ensure that New Zealand’s transition to a low-emissions economy is on the most efficient path. Accordingly, it is important we regularly  review our prices to ensure they assist these outcomes.

We have developed roadmaps for our pricing reform process to guide our development and signal potential areas for reform to interested parties. Network Tasman’s current roadmap is published below, along with past roadmaps. Future milestones should be considered indicative as they are influenced by the outcomes and conclusions of earlier roadmap stages. The roadmaps are revised and updated to capture milestones that have been achieved and to respond to changes in regulatory and industry circumstances.