Electricity Networks Association executives say the Commerce Commission's proposal to set default prices for electricity distributors will be more of a deterrent than an incentive to improve infrastructure.
The commission has released its proposed reset of the prices that 16 lines businesses can charge for their services from next year.
The purpose of regulating the prices is to encourage firms to invest in infrastructure, improve efficiency and not extract excessive profits.
Under the proposal, distributors such as Vector, Horizon Energy and Wellington Electricity Lines will be required to charge less, while others will be able to charge more.
Association chief executive Alan Jenkins says the process has taken a long time and is not providing the companies with any certainty or real incentive.
The commission says, however, that it's the first time in 10 years that it has done a proper reset. Chairperson Mark Berry says the companies getting the biggest increase in the prices they can charge are the ones that need the most investment.
Mr Berry says the commission intends to make its final decision on the prices at the end of November. In the meantime the proposal is subject to two legal disputes over the actual price reset and the methodology used to work out the prices.
