Commission receives application for EIR Act exempt

Media Release

Issued 30 June 2003-04/144

Commission receives application for EIR Act exemption

The Commerce Commission has received an application from David Henderson and related entities for an exemption under the Electricity Industry Reform Act 1998 (the EIR Act) in relation to ownership separation provisions.

David Henderson and the other entities owned by him are involved in property development and investment in New Zealand and Australia. Exemption is sought from s 17 of the EIR Act, which prohibits cross involvements in electricity lines and supply businesses, in relation to the following entities:

- PW Services Limited;

- Electricity Direct Limited;

- Princes Wharf Management Limited:

- Wairangi Investment Limited:

- David Stewart Henderson; and

- Anthony Clive Sandlant.

The purpose of the EIR Act is to reform the electricity industry to better ensure that costs and prices in the electricity industry are subject to sustained downward pressure and the benefits of efficient electricity pricing flow through to all classes of consumers, by effectively separating electricity distribution from generation and retail and promoting effective competition in electricity generation and retail markets.

The Commission may grant an exemption in respect of a business or involvement or interest, only where doing so:

a. would not result in certain involvements in electricity lines businesses and electricity supply businesses which may create incentives or opportunities:

i. to inhibit competition in the electricity industry; or

ii. to cross-subsidise generation activities from electricity lines businesses; and

b. would not result in relationships between electricity lines businesses and electricity supply businesses which are not at arms length.

For further information on the Commission's role within the EIR Act, visit the Commission's website, http://www.comcom.govt.nz/acts/eiract/.

A public version of the application will shortly be available on the Commission's website, http://www.comcom.govt.nz/adjudication/s81.cfm.

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