EGEP Create Draft Rulebook

Press Release

6 June 2001

The Electricity Governance Establishment Project (EGEP) has reached the first important stage in reshaping the New Zealand electricity industry with the creation of a draft rulebook, which is being made available for widespread consultation.

The project’s purpose is to establish a single governance structure for the electricity industry based on a new multilateral contract and to establish an Electricity Governance Board (EGB) to govern the new arrangement.

Underlying the industry-led project is the Government’s Policy Statement on Energy, announced in December 2000. Key components of the policy statement were a single governance structure for the industry and the creation of a governing board.

“The project has focused on achieving the Government’s objective for a fairer, more efficient and more sustainable electricity industry,” Mr Caygill said.

Initially the project has focused on merging the three existing industry governance structures – the New Zealand Electricity Market (NZEM), the Metering and Reconciliation Information Agreement (MARIA) and the Multilateral Agreement on Common Quality Standards (MACQS) – and establishing a new Electricity Governance Board at the earliest practical date.

The draft rules describe how the new arrangements will operate and the governance structure under which they will function. Input into the rules’ development has been widespread, reflecting the large number of stakeholders with an interest in maintaining an effective and robust electricity industry.

“Input into the project has come from well beyond the traditional electricity industry,” David Caygill, Establishment Committee chairman, said. “The involvement of other stakeholders, such as consumer representatives, has been critical in reaching this stage”.

Similarly, consultation on the rules in their current form is crucial to the project’s successful progression. Numerous interested groups will be asked to provide feedback, including participants in the wider electricity industry, consumer groups, government and major energy users.

“Through the consultation process we aim to provide a set of rules with a strong basis of support amongst stakeholders and that will provide a solid foundation for the new Electricity Governance Board”, Mr Caygill said.

Following the consultation period the rules will be reviewed and finalised, before being submitted to the Commerce Commission for approval in September.

www.egb.co.nz

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