Applic'n for EIR Act exemption from Eastland Ltd
Issued 06 July 2005/06 002
Commission receives application for EIR Act exemption from Eastland Infrastructure Limited
The Commerce Commission has received an application from Eastland Infrastructure Limited, on behalf of Eastland Network Limited, seeking exemption from sections 5 and 25 of the Electricity Industry Reform Act 1998 (the Act) to operate it’s wind farm located at Mokairau, north-east of Gisborne.
Eastland Network Limited is an electricity lines business which services the Gisborne and Wairoa Districts with line function services. It distributes approximately 306 GWh of electricity to approximately 26,000 consumers across two isolated distribution networks.
Eastland Network Limited is seeking to trade in electricity hedges in respect of electricity generated by the wind farm, which it would otherwise be unable to do without an exemption under the Act.
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
to ensure 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 only where doing so:
result in certain involvements in electricity lines
businesses and electricity supply businesses which may
create incentives or opportunities:
to inhibit competition in the electricity industry; or
to cross-subsidise generation activities from electricity lines businesses; and
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 is available on the Commission’s website, http://www.comcom.govt.nz/PublicRegisters/eira.aspx