Notice of Change to Fuel Adjustment Factor (FAF) Mechanism
March 9th, 2026
Kia ora,
As you are likely aware, the current geopolitical situation in the Middle East is creating volatility across global supply chains, including fuel supply to New Zealand.
We have been advised by our fuel supplier of a significant price increase expected to take effect this week, along with continued pricing instability while the situation persists.
Given the scale and immediacy of these changes, they cannot be accommodated within our current monthly, in-arrears FAF recovery mechanism.
As a result, we will be moving to a temporary dynamic FAF recovery mechanism while this period of volatility continues. Under this approach, we will provide seven days’ notice of any future FAF adjustments.
We recognise that this change may introduce additional complexity for customers. However, the scale and frequency of these fuel price movements mean we are unable to absorb the associated cost increases.
We will continue to monitor the situation closely and will revert to our existing FAF mechanism once conditions stabilise.
If you have any questions, please don’t hesitate to get in touch.
At the United Nations summit meeting in September 2015, world leaders adopted 17 global goals (and 169 targets) as a set of universal goals that aim to address the urgent environmental, political and economic challenges facing our world. These are known as the United Nations Sustainable Development Goals (SDGs).
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