Pioneer Schemes
Information about Pioneer Schemes on the Waipā Networks electricity distribution network.
Waipā Networks operates Pioneer Schemes for certain network extensions. These schemes allow the cost of electricity infrastructure funded by an initial customer to be shared with other customers who later connect to, and benefit from, that infrastructure.
This page explains how Pioneer Schemes work, outlines any active schemes on our network, and answers common questions.
What is a Pioneer Scheme?
Sometimes a customer needs new electricity infrastructure to connect to the network – for example, a new power line, cable extension, or transformer.
If that infrastructure could also be used by other customers in the future, Waipā Networks may set up a Pioneer Scheme.
A Pioneer Scheme allows the cost of that infrastructure to be shared fairly over time:
- The first customer funds the network extension required for the connection
- If other customers connect later and use that infrastructure, they may contribute towards the original cost
- A proportion of that contribution may be rebated to the original customer who funded the work.
This approach helps ensure that the cost of extending the network is shared between customers who benefit from it.
When does a Pioneer Scheme apply?
A Pioneer Scheme may be established when:
- A network extension is required to connect a customer, and
- The customer contribution exceeds the Pioneer Scheme cost threshold, and
- It is reasonable to expect that other customers may connect to and benefit from that infrastructure in the future.
Pioneer Schemes typically apply to network extension assets such as:
- New overhead lines
- Underground cables
- Transformers
- Other network extension works.
Pioneer Schemes do not apply to:
- Real estate developments
- Connections that use standard published connection charges
- Large connection contracts covered by other arrangements.
Pioneer Scheme Policy
This policy outlines when an extension may qualify as a Pioneer Scheme, what information we share about these schemes, and how costs, contributions, and any future rebates are worked out. It also explains the process we follow to manage Pioneer Schemes.
Our policy has been designed to meet the requirements of the Electricity Industry Participation Code (Part 6B.6–6B.9) while supporting fair and transparent connections to the Waipā Networks electricity network.
Active Pioneer Schemes
There are currently two Pioneer Schemes in place on our network – 1 Thompson Street and 43 Shakespeare Street.
Common Pioneer Scheme Questions
What / who is a Pioneer?
A Pioneer is a customer who pays for network infrastructure that may later be used by others. There may be more than one Pioneer associated with the same network extension over time, depending on who contributes towards the cost of that infrastructure.
The First Pioneer is the customer who originally paid for the network extension. Later customers who connect to that infrastructure may also become Pioneers if their contribution towards the extension meets a specified threshold. These customers may also receive rebates if further customers connect later.
Who pays Pioneer Scheme contributions?
If a new customer connects to infrastructure that is part of a Pioneer Scheme, they may need to pay a Pioneer Scheme contribution.
This contribution helps repay the customers who originally funded the network extension.
All connection applicants who use the extension infrastructure may be required to contribute.
How are contributions calculated?
Contributions are based on the remaining value of the original network extension. The value is reduced over time using a standard depreciation method.
When calculating a contribution, we consider:
- The remaining value of the infrastructure
- The amount of capacity used by the new connection
- The length of line of cable used (if relevant).
Small contributions may not be charged if the amount is below the minimum threshold.
How long does a Pioneer Scheme last?
Pioneer Schemes normally remain active for 7 years from the date the original connection charge was first paid.
After this time, new customers can connect to the infrastructure without paying a Pioneer Scheme contribution.
How do Pioneer Scheme rebates work?
When a new customer pays a Pioneer Scheme contribution:
- Waipā Networks collects the contribution
- A rebate may be paid to the Pioneer (or Pioneers) who funded the original infrastructure.
If there are multiple pioneers, the rebate is shared among them based on their contributions to the original work.
What happens if ownership changes?
If the property connected to a Pioneer Scheme is sold, the Pioneer status may transfer to the new owner or occupier of the property.
This ensures that any future rebates are paid to the party associated with the connection that funded the extension.
Got a question about Pioneer Schemes that isn’t covered by the above?
Please contact us via 0800 800 769 or at projects@waipanetworks.co.nz