Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fletcher Challenge group interim exemption

Commission grants Fletcher Challenge group interim exemption from Electricity Industry Reform Act

The Commerce Commission today granted 10 companies in the Fletcher Challenge Group an interim exemption from the Electricity Industry Reform Act (EIR Act).

Commissioner Dr Kate Brown said that the interim exemption is until the Commission makes its final decision. There is no specific date for this yet, but it is expected to be within a few weeks.

The EIR Act requires companies involved in electricity lines businesses and electricity supply businesses to separate ownership of the two types of businesses, or be exempted from the Act by the Commission.

The Fletcher Challenge group has wide-ranging electricity interests throughout the country. As the companies are interconnected, it is their total electricity interests that must be looked at under the EIR Act.

Dr Brown said that the Commission considered that the purposes of the EIR Act would not be defeated by a short-term exemption.

The group is involved in electricity supply businesses through: Natural Gas Corporation, the Kapuni Gas Treatment Plant joint venture, Fletcher Challenge Power Limited, Tasman Pulp and Paper Company Limited, Fletcher Challenge Forests Limited, Fletcher Challenge Energy, Fletcher Property Limited, Fletcher Wood Panels Limited, Firth Industries Limited, Winstone Aggregates Limited and Golden Bay Cement Limited.

It is involved in electricity lines businesses through: Fletcher Property Limited, Fletcher Wood Panels Limited, Tasman Pulp and Paper Company Limited, the Kapuni Gas Treatment Plant joint venture, Fletcher Challenge Forests Limited, Firth Industries Limited and Golden Bay Cement Limited.


In considering an exemption, the Commission must answer three questions: 1. Would the exemption inhibit competition? 2. Would the exemption allow cross-subsidisation between electricity generation and lines businesses? 3. Would the exemption create a relationship between electricity lines and supply businesses, which is not at arms length?

"The presumption must be that if the answer to any of these questions is 'yes', the Commission must not grant an exemption from the EIR Act," Dr Brown said.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news