Application for EIR Act exemption from Top Energy
Commission receives application for EIR Act exemption from Top Energy Limited
The Commerce Commission has received an application from Top Energy Limited, seeking exemption from section 17 of the Electricity Industry Reform Act 1998 (EIR Act) in relation to its proposal to expand its geothermal power plant Ngawha, near Kaikohe.
Presently, Ngawha has a nameplate capacity of 12 MW. The EIR Act provides a statutory exemption for an electricity lines business to own or operate certain geothermal power plants with a nameplate capacity of up to 12 MW. Top Energy's proposal is to expand Ngawha by up to 30 MW to result in a new nameplate capacity of up to 42 MW.
Top Energy Limited is an electricity lines business which owns and operates the local distribution network in the Northland region.
Section 17 of the EIR Act prohibits the cross-involvement of electricity lines and supply companies.
Background
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;
- to ensure the benefits of efficient
electricity pricing flow through to all classes of
consumers; and
- 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:
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.
A public version of the application is available on the Commission's website on the Public Registers
ENDS