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


Commission authorises self-governance rule-book

Commerce Commission authorises self-governance rulebook for electricity industry

The Commerce Commission today authorised proposed new arrangements in the form of a rulebook for self-governance of the electricity industry. The authorisation is subject to four conditions and will expire four years from the date of the implementation of the rulebook, or on 31 March 2007, whichever is the earlier.

If adopted, the rulebook would supersede existing arrangements for the wholesale market, grid security, metering and reconciliation, and would also incorporate arrangements for agreeing transmission prices, services and investment levels.

The Electricity Governance Board Limited (EGB) initially applied for the authorisation, under section 58 of the Commerce Act, in December 2001, and subsequently submitted a revised application in February 2002.

The proposed rulebook was developed by the industry following the release of the Government Policy Statement (GPS) in December 2000. The GPS sets out the Government’s expectations for industry action and its views on governance matters.

Commission Chair John Belgrave said “The rulebook arrangement contains some innovative and potentially valuable means of meeting the Government’s policy objectives for the electricity sector and for addressing complex problems which have caused concern to the industry for many years.”

“With the conditions and time limit, the Commission is satisfied that the net benefits to the public from the arrangement are such that it should be authorised.” Conditions for authorisation The Commission has applied four conditions to its authorisation. These are: changes to the governance arrangements to ensure that pro-competitive and public benefit enhancing rule changes are not delayed unduly in working groups; changes to the governance arrangements to allow the EGB discretion to over-ride an industry vote opposing a pro-competitive and public benefit enhancing rule change; the completion of the drafting of rules dealing with consumer issues; and a review of the efficacy of the part of the rulebook dealing with transmission services after two years.
The Commission’s written reasons for its decision will be available shortly.

Background The proposed arrangement is a multilateral agreement in the form of a rulebook which incorporates governance provisions and rules for the operation of the wholesale electricity market, the provision of transmission services, provision of common quality elements of electricity, and obligations in respect of metering and reconciling electricity supplied and taken.

The arrangement is proposed to supersede existing arrangements for wholesaling (NZEM) metering and reconciliation (MARIA) and common quality (MACQS) and to provide a forum for making transmission investment decisions.

The Commission received written submissions on the application from all the major parties in the electricity sector, including consumer representatives. It held a conference in June 2002, and subsequently consulted interested parties on possible conditions it was considering, which included a possible limit to the period of authorisation.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats: Auckland’s Population Falls For The First Time
In the wake of the COVID-19 pandemic, New Zealand’s population growth slowed down with Auckland recording a population decline for the first time ever, Stats NZ said today. “New Zealand saw slowing population growth in all regions... More>>

BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>

Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>