Quote from Graeme Weston on 4 November 2025, 8:42 pm

Definition of Small Business – Code Amendment Proposal

The EA is consulting on an issue which should never have arisen - distributors are facing challenges in applying the definition of “small business consumer” to reward households and small businesses for supplying power to the network at peak times.

Position Summary

This consultation is misplaced. The issue is not whether < 45 kVA connections qualify for a rebate, but that low-voltage stability is being compromised because dynamic, locational injection is unavailable.
The root cause is regulatory fragmentation:

1. The Electricity Authority has failed to implement dynamic DSO orchestration—there is no requirement for EDBs to operate with real-time LV coordination.
2. EDBs lack LV visibility—they cannot see phase imbalance, voltage headroom, or feeder congestion.
3. Metering Equipment Providers (MEPs) have withheld ICP smart-meter data, blocking DSOs from obtaining the visibility already paid for by consumers.
4. The Commerce Commission has been aware of this competition barrier but has taken no effective action.

Statutory Obligation

Under Section 32(1) of the Electricity Industry Act 2010, the Authority has both the power and the duty to make and amend the Code “for the long-term benefit of consumers by promoting competition, reliability, and efficiency.”
By allowing the system to fragment—reacting to individual issues such as “small business” definitions—the EA is failing that statutory duty.

Required Regulatory Reset

The Authority should abort this narrow amendment and lead a unified framework that makes the definitional question redundant:

1. Mandate DSO Operation: Require all EDBs to function as DSOs with real-time LV telemetry, publishing feeder and phase dashboards and Dynamic Operating Envelopes (DOEs) accessible through open APIs.
2. Unlock Smart-Meter Data: Amend the Code to require MEPs to provide non-discriminatory access to ICP-level consumption and power-quality data (≥ 5-minute cadence). Support MBIE in designating Electricity under the Customer and Product Data Act 2025 to enable “Open Electricity.”
3. Launch DLMP Pilots: Run Distribution Locational Marginal Pricing pilots on selected feeders so injection is rewarded where and when it supports LV stability.
4. Make Three-Phase Price-Neutral: Remove daily-charge penalties for standard residential three-phase connections; link incentives to proven phase balance and avoided reinforcement.
5. Escalate Accountability: If MEPs or EDBs obstruct progress, the EA should refer the matter to the Commerce Commission for a targeted market-study on data access and, if necessary, recommend structural remedies up to nationalisation of essential data rights.

Evidence of Feasible Practice

Several EDBs are already implementing what others claim is impossible, without EA rule changes:

• Powerco – Allows 10 kW single-phase export, pays 5 ¢/kWh winter peak rebate, and has a NODS/Bluecurrent agreement covering ~250 000 meters for LV visibility.
• Aurora Energy – Adopted 10 kW export from 1 Aug 2025 using smart-meter data and inverter voltage control.
• Northpower – Enabled 10 kW export with smart-meter-based LV visibility.
• WEL Networks – Operating 5-minute LV data across 68 600 meters, transitioning to a DSO model.
• Orion – “ViSION” platform uses 5-minute operational data for LV analytics.
• Counties Energy – Running TSO-DSO coordination pilots with Transpower and EECA.

These examples demonstrate that modernisation is technically and commercially achievable today. The laggards who refuse to evolve should either meet the same standard or exit the sector. Consolidation toward capable DSOs will reduce cost and risk for consumers.

Closing Statement

The Authority must cease being gamed by definitional distractions and act in the long-term interest of consumers. Implement dynamic DSO orchestration, unlock smart-meter data, enforce LV visibility, and reward real-time injection that sustains feeder stability. Support those already modernising; put the rest on notice. The duty under s32(1) is clear — lead, don’t follow.