Exemption Sought From Commerce Commission
Exemption Sought From Commerce Commission
The Commerce Commission has received an application from Stephen Reindler, seeking exemption from section 17 of the Electricity Industry Reform Act 1998 (EIR Act) to allow Mr Reindler to take up a position as a director on the board of Meridian Energy Limited.
Currently, Mr Reindler is the General Manager Engineering at Auckland International Airport Limited (AIAL).
AIAL owns and operates the Auckland airport, which includes an electricity lines business. The company is listed on the New Zealand Stock Exchange and the Australian Stock Exchange and has a diverse shareholder base. AIAL owns a distribution network at the airport and distributes electricity to over 300 customers at the airport.
Meridian is an electricity generator and retailer. It was formed as a result of the division of Electricity Corporation of New Zealand into three separate companies in April 1999 and is a State-Owned Enterprise.
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,
www.comcom.govt.nz/ under Industry
Regulation/Electricity/Electricity Industry Reform Act.
A public version of the application is available on the Commission's website, www.comcom.govt.nz under Public Registers/Electricity Industry Reform Act Exemptions.
ends