An Auckland family says they were shocked to receive a quote of nearly $37,000 to connect their Bucklands Beach property to Vector’s gas network, despite doing part of the installation work themselves to lower the cost.
The homeowner, who asked to be identified as Chloe, had planned to install the gas connection for cooking and hot water to support an elderly parent and her young children.
Based on previous experience connecting gas at four different properties, she expected the cost to be in the range of $7000.
So when the initial quote from Vector arrived in June at $24,877.64, Chloe said she was stunned – especially by a traffic management charge of over $8000.
The high figure came shortly after Vector introduced a new capital contributions policy in May, which ended subsidies for new gas connections and required customers to fund the full cost of assets used solely for their connection.
In response to the quote, Chloe said the family requested their traffic management plan be simplified and even undertook trenching and ducting work themselves to reduce cost.
But just weeks later, a second quote came back even higher at $36,693.25.
“It was unbelievable,” Chloe told 1News. “In our experience across four prior gas connections at different properties, including one with a particularly long driveway, around 87.5m, the cost was still only up to the $7000 range.”
In a statement to 1News, Vector said the initial quote of almost $25k had failed to account for several items required to complete the work and the second quote reflected those additions.
“This was a mistake during the process and something we are reviewing,” a spokesperson said.
“We have informed the customer that we will honour the original quote, making necessary adjustments to reflect the trenching and ducting work they have already completed. Additionally, as a gesture of goodwill for the inconvenience experienced, the traffic management cost will be absorbed.”
Vector said it had apologised to the customer and that its service provider was continuing to engage with them directly.
Revised quote still unaffordable
Even after the adjustments, which Chloe said were “appreciated”, the revised cost of $15,769.33 was still “substantially higher” than the family could afford.
“We feel we have no choice but to consider alternative solutions, such as a water heat pump or hot water cylinder, instead of pursuing a gas connection,” she said.
Vector introduced a new capital contributions policy on May 1, 2025 which ended subsidies for new gas connections. Under the new policy, customers must now pay the full cost of assets that are for their sole use, including trenching, piping, and connection infrastructure.
“As Vector’s capital resources are limited, it must prioritise its expenditure. Investing in assets for the connection or sole use of a consumer would result in existing consumers subsidising others. Therefore, applicants must now fund these assets directly via capital contributions,” the document read.
These contributions are generally one-off payments made before the connection work begins.
‘Death spiral’: Consumer advocates say disconnection costs rising too
It’s not just the cost of connecting to the gas network that’s climbing — leaving it is expensive too.
Consumer advocates say households trying to disconnect from gas are facing fees of up to $1500, adding to the financial pressure on those wanting to switch to electric alternatives.
“We have referred to the gas situation in New Zealand as a ‘death spiral’ because gas prices are rising and providers are trying to recoup expensive network costs from a dwindling number of consumers,” Consumer NZ said in a statement.
The group said while electrifying homes and vehicles can lead to “significant savings”, they recommended people made the switch when appliances naturally needed replacing.
“However, we acknowledge that the gas disconnection fees are a real barrier for people who want to electrify their lives.”
