Electricity Amendment Act 2001

1: Title
1: This Act is the Electricity Amendment Act 2001.
2: In this Act, the Electricity Act 1992 the principal Act
2: Commencement
Except as provided in section 3
3: Commencement of Electricity Governance Board provisions
Section 3 repealed 18 October 2004 14(4) Electricity Amendment Act 2004
4: Process to apply before Electricity Governance Board provisions may be commenced
Section 4 repealed 18 October 2004 14(4) Electricity Amendment Act 2004
5: Automatic trigger of process for commencing Electricity Governance Board provisions
Section 5 repealed 18 October 2004 14(4) Electricity Amendment Act 2004
6: Title amended
The Title of the principal Act is amended by inserting, after the words the regulation of the supply of electricity and the electricity industry
7: Interpretation
1: Section 2(1) point of supply point of supply subsection (3) .
2: Section 2(1) community trust section 3(1) of the Electricity Industry Reform Act 1998 section 38 of that Act customer trust section 3(1) of the Electricity Industry Reform Act 1998 section 38 of that Act domestic consumer domestic premises paragraphs (a) to (i) of section 90 of the Electricity Industry Reform Act 1998 EGB subpart 1 of Part 15 EGB's board board Part 15 and Schedule 2A section 172Q electricity generator electricity governance organisation subpart 2 of Part 15 section 172ZI electricity governance regulations sections 172D and 172E GPS objectives and outcomes section 172ZJ industry participant
a: an electricity retailer:
b: an electricity distributor:
c: an electricity generator:
d: a line owner:
e: a person who uses electricity that is conveyed to the person directly by the national grid:
f: a person or group of persons involved in the governance or administration of the electricity industry national grid performance standards section 172ZJ report date subpart 2 of Part 15 section 172ZJ reporting period section 172ZJ rules and electricity governance rules subpart 2 of Part XIV subpart 1 of Part 15 section 172H Transpower .
3: Section 2
3: In this Act, point of supply
a: if there are both high voltage lines and a transformer owned by the electricity distributor on the property, the point of supply is the point at which electricity from the transformer enters exclusive fittings; or
b: if there are non-exclusive fittings on the property, the point of supply is the point at which those fittings become exclusive fittings; or
c: if the exclusive fittings on the property are owned by a consumer that is a tenant or licensee of the owner or occupier of the property, the point of supply is the point at which those exclusive fittings enter the area leased or licensed by the consumer; or
d: if there is specific agreement that any other point on the property is the point of supply, the point of supply is the agreed point;— and, in this definition,— exclusive fittings high voltage lines property
a: means the land within the boundary where the electricity is consumed:
b: includes the whole of the property, if the property is occupied wholly or partially by tenants or licensees of the owner or occupier:
c: includes the whole of any property that has been subdivided under the Unit Titles Act 1972 specific agreement
a: entered into by—
i: the existing consumer; or
ii: any person with a greater interest in the property than the consumer (such as the consumer's landlord); or
iii: any body corporate under the Unit Titles Act 1972
b: entered into by the electricity distributor or the electricity retailer; and
c: entered into before or after the date on which this provision comes into force.
4: The new definition of point of supply in subsection (3)
a: applies on and after the date on which the Electricity Amendment Act 2001 receives the Royal assent if—
i: an agreement exists between the electricity distributor and the consumer that the point of supply is already located at the point provided for in the new definition; and
ii: the consumer has not challenged the existence of that agreement before that date; and
b: is, in other cases, subject to the transitional provision in subsection (5)
5: The new definition of point of supply in subsection (3)
a: brought the fittings for which the consumer will become responsible as a result of the new definition to a reasonable standard of maintenance or repair, if those fittings are not at a reasonable standard at the time when this provision comes into force; and
b: notified the consumer in writing—
i: that the point of supply is as defined in accordance with the new definition; and
ii: the location of that point of supply; and
iii: the effect of the change to the point of supply; and
iv: that the point of supply may not take effect under this Act unless any fittings for which the consumer will become responsible have been brought to a reasonable standard of maintenance and repair; and
v: the date on which the point of supply will change (which must be no less than 20 working days after the date of the notification).
8: New
sections 4 4A The principal Act is amended by repealing sections 4 4A
4: Declaration of electricity distributors as electricity operators
1: The Minister may, by notice in the Gazette
2: The Minister must, as soon as reasonably practicable, by notice in the Gazette
4A: Declaration of electricity supply businesses as electricity operators
1: The Minister may, by notice in the Gazette
a: that a declaration is necessary to enable the person to carry on all or any of the activities referred to in section 4(2) of the Electricity Industry Reform Act 1998
b: that the electricity distribution business interests of the electricity supply business in respect of which the declaration is made are confined to any or all of the activities set out in that subsection.
2: The Minister must, as soon as reasonably practicable, by notice in the Gazette section 4(2) of the Electricity Industry Reform Act 1998
3: For the purposes of this section, electricity supply business section 5(1)(a)(iii) of the Electricity Industry Reform Act 1998
9: New
section 22A The principal Act is amended by inserting, after section 22
22A: Owners of land not responsible for maintenance
1: An owner or occupier of land on which any existing works are situated is not required by this Act to maintain existing works, or to maintain tracks for the purpose of providing the owner of the works with access to the existing works.
2: This section does not limit or override any new or existing legally binding agreement that provides for an owner or occupier of the land to be responsible for any maintenance.
10: Rights of entry in respect of existing works
1: Section 23
3: In this section, maintenance
a: any repairs and any other activities for the purpose of maintaining, or that have the effect of maintaining, existing works; and
b: the carrying out of any replacement or upgrade of existing works as long as the land will not be injuriously affected as a result of the replacement or upgrade.
2: The amendment made by subsection (1) Resource Management Act 1991 subsection (1)
11: New
sections 23A to 23E
1: The principal Act is amended by inserting, after section 23
23A: Line owner must give written notice of intention to maintain or complete existing works
1: An owner of existing works that intends to enter upon land for the purpose of maintaining or completing the works under section 23
2: The notice must be in writing, and must specify—
a: the location of the proposed entry and work; and
b: the reasons for the entry and work and the nature of the work to be undertaken; and
c: the date and time of entry; and
d: the length of time that the owner of the works expects to be on the land.
23B: Line owner must give notice of intention to inspect or operate existing works
1: An owner of existing works that intends to enter upon land for the purpose of inspecting or operating the works under section 23
2: The notice may be given by telephone or in any other manner that the owner of the works thinks appropriate.
23C: Notice in emergencies
1: An owner of existing works is excused from giving notice as required by section 23A or section 23B
a: entry upon the land is necessary in circumstances of probable danger to life or property; or
b: entry upon the land is immediately necessary to maintain the continuity or safety of the supply and distribution of electricity.
2: However, in either case, the owner of the existing works must give notice to the owner or occupier of the land as soon as practicable and to the extent that the circumstances permit (and no later than 5 working days after entry).
23D: Land owner may set reasonable conditions on line owner's entry
The owner or occupier of the land may set reasonable conditions relating to the timing of entry under section 23
a: delay the entry by more than 15 working days; or
b: require monetary or other consideration; or
c: otherwise defeat the ability of the owner of the works to exercise effectively the powers in section 23
23E: Agreements preserved
Sections 23A to 23D
2: Section 159(1) 31 23A to 23E,
12: New
section 23F The principal Act is amended by inserting, before section 24
23F: Disputes about land access
1: The owner or occupier of land, or the owner of the works, may refer any dispute under sections 23 to 23E
2: The objector must, as soon as practicable after making a written objection, serve a copy of the objection on the other party to the dispute.
3: Within 1 month after receiving a copy of the objection or within any further period that the Environment Court allows, the other party to the dispute must send to the Environment Court and serve on the objector a reply to the objection containing matters that are appropriate having regard to the objection made and to any practice directions issued by the Environment Court.
4: The Environment Court must inquire into the objection and, for that purpose, may conduct a hearing at any time and place it appoints.
5: The Environment Court must give not less than 15 working days' notice of any time and place so appointed to the objector and to the other party to the dispute.
6: The Environment Court has power to make a declaration as if the proceeding had been brought under sections 310 to 313 of the Resource Management Act 1991
7: The findings of the Environment Court are binding on the objector and the other party to the dispute.
8: The Environment Court may award those costs that it considers just either in favour of or against either party.
9: Subject to sections 299 to 308 of the Resource Management Act 1991 1981 No 35 s 24 .
13: New headings and
sections 158A to 158F
1: The principal Act is amended by inserting, after the Part 14
1: General electricity matters
Financial statements of customer and community trusts
158A: Community and customer trusts to prepare audited financial statements
The trustees of a community trust and the trustees of a customer trust must, within 4 months after the end of each financial year of the trust,—
a: prepare financial statements in accordance with generally accepted accounting practice (within the meaning of section 3 of the Financial Reporting Act 1993
b: submit those financial statements to an auditor for audit; and
c: make available to the public in accordance with section 158B
158B: Publication of audited financial statements
1: The trustees of a community trust and the trustees of a customer trust must make the documents referred to in section 158A(c)
a: for inspection at every office of the trust or at any other place specified in the notification under subsection (2)
b: for purchase at a reasonable price.
2: The trustees must also notify the fact that copies are so available (and where) by advertisement in the news section of 2 separate editions of each newspaper that is widely read by customers of the customer trust or by persons in the community of the community trust (as the case requires).
158C: Auditor of trusts
1: The trustees of a community trust or a customer trust must, in each financial year, hold an annual meeting of beneficiaries at which the beneficiaries appoint an auditor to hold office from the conclusion of that meeting until the conclusion of the next annual meeting of beneficiaries.
2: The trustees of a community trust or a customer trust may fill any casual vacancy in the office of auditor by appointing an auditor to hold office until the conclusion of the next annual meeting of beneficiaries (but, while the vacancy remains, the surviving or continuing auditor, if any, may continue to act as auditor).
3: The fees and expenses of the auditor must be fixed—
a: at the annual meeting of beneficiaries or in the way the beneficiaries determine at the meeting, if appointed at the annual meeting:
b: by the trustees, if appointed by the trustees.
4: An auditor of a community trust or customer trust—
a: must be a person who is qualified to act as an auditor under section 199(1) of the Companies Act 1993
b: must not be a trustee, director, employee, or agent of the trust or of any electricity company owned by the trust or otherwise disqualified from being an auditor under section 199(2)(b) and (d) of the Companies Act 1993
5: In addition, sections 198, 200, and 202 to 207 of the Companies Act 1993
6: These sections of the Companies Act 1993
7: In this section, electricity company section 3(1) of the Electricity Industry Reform Act 1998
158D: Procedures for annual meeting to appoint auditor
1: The trustees must give no less than 14 days' notice of the annual meeting of beneficiaries to appoint an auditor in the news section of 2 separate editions of each newspaper that is widely read by customers of the customer trust or by persons in the community of the community trust (as the case requires).
2: Every beneficiary has 1 vote.
3: The quorum for the annual meeting is 20 beneficiaries.
4: No business may be transacted at the annual meeting if a quorum is not present.
5: The regulations under section 172C
158E: Auditor-General to be auditor if no other auditor appointed
1: If no auditor is appointed in accordance with section 158C(1) section 158C(2)
2: The trustees of a community trust or customer trust must, within 5 working days of subsection (1)
3: If this section applies, the sections and Parts of the Public Audit Act 2001 section 19 of that Act
158F: Application of
sections 158A to 158E
1: The trustees of a community trust and the trustees of a customer trust must comply with sections 158A and 158B section 46A of the Energy Companies Act 1992
2: Except as provided in subsection (1) sections 158A to 158E
2: Sections 158C to 158E subsection (1)
14: Repeal and saving of information disclosure provisions
1: The principal Act is amended by repealing sections 170 171 171A 172 section 170
2: The Electricity (Information Disclosure) Regulations 1999 section 170
3: Sections 171 171A 172 Electricity (Information Disclosure) Regulations 1999 subsection (2)
15: Repeal of
section 170A The principal Act is amended by repealing section 170A
16: New subpart 2 and
Part 15 The principal Act is amended by inserting, after section 172
2: Electricity industry regulation-making powers
172A: Outline of subpart
1: In this subpart, the principal regulation-making powers are as follows:
a: regulations may be made under section 172B section 172C
b: electricity governance regulations and rules may be made under sections 172D and 172H
c: under section 172E
d: other electricity governance regulations and rules may be made under sections 172F and 172H
e: under section 172H
2: This section is intended only as a guide to the general scheme and effect of the principal regulation-making powers in this Part. Regulations—Low fixed charge tariff option for domestic consumers
172B: Low fixed charge tariff option for domestic consumers
1: The objective of this section is to enable the making of regulations to ensure that electricity providers offer a low fixed charge tariff option or options for delivered electricity to domestic consumers that will assist low-use consumers and encourage energy conservation.
2: In this section,— delivered electricity electricity provider fixed charge
3: The Governor-General may, by Order in Council, make regulations—
a: requiring electricity providers to make available to domestic consumers 1 or more tariff options that include a fixed charge for delivered electricity to domestic premises at not more than a specified amount or proportion calculated by reference to the total charge of the average or median domestic consumer:
b: regulating the variable (cents per kilowatt hour) charges in those required tariff options to ensure that average or median domestic consumers would pay no more on the required tariff option than on any alternative option available from that electricity provider:
c: regulating other charges and other terms and conditions of the contracts to which the low fixed charge tariff options in paragraph (a)
d: setting rules as to the offering, supply, advertisement, promotion, availability, and unbundling of regulated charging options:
e: specifying criteria for the Minister to exempt electricity providers, or electricity providers in relation to particular areas, from the application of the regulations if, in the opinion of the Minister, the electricity providers materially comply with the objective of this section.
4: If the components that make up the delivered electricity are unbundled, regulations may be made under subsection (3)
5: Subsection (4)
6: Regulations made under subsection (3)
7: The Governor-General may, for the purpose of assisting retailers to deliver low fixed charge tariff options, by Order in Council, make regulations—
a: regulating all or any charges charged by electricity distributors to ensure that they are not, in the opinion of the Minister, unreasonably detrimental to the interests of low-use consumers:
b: regulating the terms and conditions under which electricity distributors supply their services in relation to domestic consumers to ensure that they are not, in the opinion of the Minister, unreasonably detrimental to the interests of low-use consumers:
c: setting rules as to the offering, availability, supply, and unbundling of electricity distributors' services.
8: The Governor-General may, by Order in Council, make regulations providing for the supply and collection of information from electricity providers and electricity distributors—
a: about contracts, offers, advertising, or promotion relating to the supply of delivered electricity, or components of delivered electricity, to domestic consumers; or
b: information that is necessary for the purposes of calculating the total charge for the average or median domestic consumer.
9: Subsection (7) Regulations—Code on access for beneficiaries of community and customer trusts
172C: Regulations for code on access for beneficiaries of customer and community trusts
1: The objective of this section is to enable the making of regulations to promote the accountability of community and customer trusts to their beneficiaries.
2: The Governor-General may, by Order in Council, make regulations for all or any of the following purposes in relation to community trusts and customer trusts:
a: providing for a code of practice for those trusts and their trustees that specifies—
i: requirements for trustees to disclose to beneficiaries information of the kind that they are required to disclose to beneficiaries under the Trustee Act 1956
ii: procedures and other matters concerning requests for information, decisions on those requests, and the form in which information must be provided:
iii: requirements for those trustees to hold at least 1 annual meeting that beneficiaries may attend and other matters concerning those meetings, including notice requirements, the rights of beneficiaries to attend and to receive copies of minutes of or other material relating to those meetings, and a requirement for the chairperson of those meetings to allow a reasonable opportunity for beneficiaries at the meeting to question, discuss, or comment on the management of the trust:
b: providing for rights of review of acts and decisions of trustees concerning matters governed by the code, the powers and procedures of the person or court undertaking that review, and consequential rights of appeal or review.
3: Nothing in the code under subsection (2)(a) Electricity governance regulations
172D: Electricity governance regulations for wholesale market and transmission of electricity
1: The Governor-General may, by Order in Council made on the recommendation of the Minister in accordance with section 172E subsection (2)
2: The purposes are— Wholesale electricity market
a: providing for the establishment and operation of wholesale markets for electricity, including for pricing and determining quantities of electricity for market transactions; for clearing, settling, and reconciling market transactions; for scheduling and dispatching electricity; for disclosure of market information; for minimum prudential standards for market participation; and for minimum standards of market conduct:
b: requiring participants in wholesale electricity markets or classes of participants to comply with the matters in paragraph (a) Transmission of electricity
c: prescribing reasonable terms and conditions on which Transpower must enable distribution lines and generators and users of electricity to be connected to the national grid, and that must be complied with in connecting to the national grid:
d: regulating the way in which expansions, replacements, or upgrades of the national grid or parts of the national grid must be evaluated, carried out, and funded, including specifying—
i: the circumstances in which Transpower must generally carry out expansions, replacements, or upgrades:
ii: particular expansions, replacements, or upgrades that Transpower must carry out:
iii: the methodology on which costs for expansions, replacements, or upgrades must be allocated among industry participants, or the actual allocation of those costs, and providing for their payment by industry participants:
iv: obligations for Transpower to report annually in relation to forecasts of medium-term system adequacy to assist in identifying opportunities for the use of alternatives to expansions, replacements, or upgrades:
e: setting quality and security standards for the transmission system or parts of the transmission system, or for the use of that system or part, and requiring industry participants to comply with those standards:
f: requiring the use by Transpower of a specified methodology or component of a methodology for allocating Transpower's revenue requirement to individual electricity generators, electricity retailers, electricity distributors, line owners, customers, or consumers, or classes of any of those persons, including—
i: defining the charges for any of those persons or classes of any of those persons:
ii: imposing quality standards generally or in respect of the supply of transmission services to any of those persons or classes of any of those persons:
iii: requiring a specified person or class of persons receiving (either directly or indirectly) goods or services from Transpower to pay a specified amount or proportion of the total price, or the total price, for those goods or services:
iv: authorising a way or ways in which Transpower may apply the methodology.
172E: Conditions and process for recommendations on electricity governance regulations for wholesale market and transmission of electricity
1: The Minister may recommend electricity governance regulations under section 172D
a: EGB is established; and
b: the recommendation—
i: is for transitional purposes if EGB is established but has not yet made a recommendation to the Minister on the matter; or
ii: implements the substantive effect of a recommendation by EGB to the Minister.
2: The following process applies to recommendations by the Minister and EGB concerning those regulations:
a: sections 172W to 172Z
b: before making a recommendation, EGB or, if there is no EGB recommendation, the Minister must consult with persons that EGB or the Minister (as the case may be) thinks are representative of the interests of persons likely to be substantially affected by the proposed regulations:
c: EGB and the Minister must each, before making a recommendation, have regard to the following objectives:
i: energy and other resources are used efficiently:
ii: risks relating to security of supply are properly and efficiently managed:
iii: the full costs of producing and transporting each additional unit of electricity are signalled:
iv: delivered electricity costs and prices are subject to downward pressure:
v: the quality of electricity services as far as possible reflects customers' preferences:
vi: transmission losses and constraints are signalled:
vii: consistency with the Government's climate change policies and objectives is achieved.
3: Subsection (2)(b)
a: EGB or the Minister must consult on the regulations in accordance with subsection (2)(b)
b: after that consultation, the Minister must publish a notice in the Gazette and then within a further 6 months, the Minister must implement that decision.
4: A failure to comply with subsection (2)(b)
172F: Other electricity governance regulations
1: The Governor-General may, by Order in Council made on the recommendation of the Minister in accordance with section 172G subsection (2)
2: The purposes (and the relevant objectives applying for the purpose of section 172G Complaints resolution system
a: with the objective of promoting best industry practice and enhancing access to redress for complaints, establishing a complaints resolution system for complaints from any person (including, without limitation, potential consumers and landowners) about electricity distributors and electricity retailers, to be administered independently of those electricity distributors and electricity retailers, containing—
i: a code of practice setting minimum standards of conduct, and containing benchmarks for best practice, for electricity distributors and electricity retailers:
ii: requirements for electricity distributors and electricity retailers to establish and maintain procedures for handling complaints (including referring complaints to EGB, each other, or other agencies for their consideration):
iii: procedures for complaints to be made to a complaints resolution agency, and providing for the powers and procedures of that agency in relation to the handling of, investigation of, reporting on, and the making of recommendations or decisions on those complaints (including referring complaints to EGB or other agencies for their consideration):
iv: provision for compensation up to a maximum of $20,000 to be awarded and other actions to be taken by the complaints resolution agency referred to in subparagraph (iii)
v: provision for rights of appeal or review in relation to decisions relating to those complaints:
vi: requirements for the complaints resolution agency to collect and publish aggregated statistical information on the use of prepayment meters and on disconnections: Prepayment meters
b: requiring electricity retailers to offer prepayment meters to domestic consumers at a reasonable cost, and prescribing conditions on which those meters must be supplied, with the objective of ensuring that all domestic consumers who wish to pay for electricity in advance have the option to do so at reasonable cost: Ability of consumers to choose preferred electricity retailer
c: providing a system or set of rules that will enable any consumer or class of consumer to choose, and alternate, between competing electricity retailers, with the objective of promoting competition in electricity retail markets:
d: requiring all users of the national grid or distribution lines to comply with, and give effect to, a system or set of rules that will enable any consumer or class of consumer to choose, and alternate, between competing electricity retailers, with the objective of promoting competition in electricity retail markets: Transition arrangements for insolvent electricity retailers
e: providing a system of transition arrangements for consumers in the event of an electricity retailer becoming insolvent, and requiring industry participants to comply with that system, with the objective of protecting consumers or managing the liabilities of other electricity retailers: Connection of generation to distribution lines
f: prescribing reasonable terms and conditions on which line owners and electricity distributors must enable generators to be connected to distribution lines other than the national grid, and that must be complied with in connecting to those distribution lines, with the objective of facilitating the use of distributed generation and ensuring that generators using distributed generation do not face barriers in connecting to those lines: Hydro spill
g: with the objective of providing transparency on hydro spill and so minimising hydro spill and promoting the efficient use of energy and other resources,—
i: requiring hydro-generators to disclose information in relation to the amount, location, timing of, and reasons for, any hydro spill from works owned by that hydro-generator:
ii: requiring hydro-generators to use a prescribed methodology or model in calculating hydro spill:
iii: requiring hydro-generators to obtain an annual audit of the disclosure in subparagraph (i) Hedge prices
h: requiring electricity retailers and electricity generators to supply information relevant to hedge prices to a central collection agency that is involved in the governance or administration of the electricity industry, and requiring that agency to collate and disclose aggregated information on hedge prices, with the objective of providing information on the expected balance between electricity supply and demand to help investors and consumers make decisions on providing for security of electricity supply: Dispute resolution procedure
i: providing procedures for resolving disputes between industry participants:
j: providing for the operation and facilitation of those dispute resolution procedures by a person, and the powers and procedures of that person: Enforcement of electricity governance regulations
k: providing for compliance with electricity governance regulations and rules to be monitored and enforced by EGB or any other person or court, and the powers and procedure of that person or court.
3: In subsection (2)(h) electricity generator
172G: Process for recommendations on other electricity governance regulations
1: The Minister may recommend electricity governance regulations under section 172F
2: The following process applies to recommendations by the Minister and EGB concerning those regulations:
a: sections 172W to 172Z
b: before making a recommendation, EGB must consult with persons that EGB thinks are representative of the interests of persons likely to be substantially affected by the proposed regulations:
c: if there is no EGB recommendation or the Minister thinks that his or her proposed recommendation substantially departs from EGB's recommendation, the Minister must, before making a recommendation, consult with persons that the Minister thinks are representative of the interests of persons likely to be substantially affected by the proposed regulations:
d: before making a recommendation concerning regulations under section 172F(2)(a)
e: EGB and the Minister must each, before making a recommendation, have regard to the relevant objective contained in section 172F(2)
f: if EGB has made a recommendation to the Minister on the matter, the Minister must have regard to EGB's recommendation before making his or her own recommendation.
3: Subsection (2)(b), (c), and (d)
a: the Minister must consult on the regulations in accordance with subsection (2)(c)
b: after that consultation, the Minister must publish a notice in the Gazette and then within a further 6 months, the Minister must implement that decision.
4: A failure to comply with subsection (2)(b), (c), or (d)
172H: Electricity governance rules
1: The Minister may make a rule for all or any of the purposes for which an electricity governance regulation may be made.
2: In deciding whether to make a rule rather than recommend the making of an electricity governance regulation, the Minister must have regard to only—
a: the importance of the rule, including whether the rule has a material effect on the rights and interests of individuals:
b: the subject matter of the rule, including whether the rule contains detailed or technical matters rather than matters of general principle:
c: the application of the rule, including—
i: whether the rule applies principally to a particular group (eg, industry participants) rather than the general public:
ii: whether the benefits of publication in accordance with section 172I Acts and Regulations Publication Act 1989
d: the expertise and rule-making procedures of the agency that has recommended the rule (eg, the expertise of EGB).
3: If the Minister makes, or EGB recommends, a rule for a purpose for which an electricity governance regulation may be made, the Minister and EGB must comply with the same conditions and process that would apply under section 172E or section 172G
4: Section 172I
5: A rule is a regulation for the purposes of the Regulations (Disallowance) Act 1989 (but not for the purposes of the Acts and Regulations Publication Act 1989
6: To the extent that a rule is inconsistent with an electricity governance regulation, the rule is subject to the electricity governance regulation.
7: If a court holds that a rule has been made in contravention of subsection (2)
172I: Method of making electricity governance rules
1: A rule may be made under section 172H Gazette
a: the empowering provision for the electricity governance regulation in relation to which the rule is made and a brief description of the nature of the rule; and
b: where copies of the rule are available for inspection and purchase.
2: The notice in the Gazette
3: A rule comes into force 28 days after the date on which it is notified in the Gazette
4: The Minister or, if it is established, EGB must make all of the rules made under section 172H
a: for inspection, free of charge,—
i: at the Ministry or the principal office of the EGB (during ordinary office hours), as the case requires; and
ii: on the Internet in an electronic form that is publicly accessible (at all reasonable times); and
b: for purchase at a reasonable price. Supplementary provisions
172J: Supplementary empowering provision for regulations and rules
1: Any regulations made under sections 172B to 172F section 172H
a: provide for the establishment of 1 or more persons or bodies or groups of persons to carry out functions in relation to those regulations or rules, and for matters concerning their constitution, functions, members (including their appointment, removal, duties, and protection from liability), procedures, employees, administration and operation, funding by industry participants, and reporting requirements:
b: prescribe the form and manner in which information is to be disclosed:
c: require disclosed information, or information from which disclosed information is derived (in whole or in part), to be certified, in the prescribed form and manner, by persons belonging to any specified class of persons:
d: prescribe when and for how long information must be disclosed:
e: exempt or provide for exemptions (including provide for the revocation of exemptions), on any terms and conditions, of any person or class of persons from all or any of the requirements in regulations made under sections 172B to 172F section 172H
f: provide for the supply of information for the purpose of administration and enforcement of this Act, and regulations and rules made under this Act:
g: provide for transitional provisions:
h: provide for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.
2: Regulations or rules that may be made in respect of all industry participants or classes of industry participants may be made in respect of all or any of the persons in that class and in respect of all or part of their business.
172K: Supplementary empowering provision for regulations
Any regulations made under sections 172B to 172F
a: provide for offences that are punishable by summary conviction for a contravention of those regulations, or of rules made under section 172H
b: provide for compensation, civil penalties, and other actions that may be taken in respect of contraventions of those regulations or of rules made under section 172H
c: confer and provide for rights of appeal and review in relation to decisions relating to contraventions of the regulations or of rules made under section 172H
15: Governance of electricity industry
Preliminary provisions
172L: Purpose
The purpose of this Part is to—
a: enable the establishment of the Electricity Governance Board to be responsible for—
i: developing recommendations on electricity governance regulations or rules that promote its principal objective in accordance with subpart 1:
ii: other matters relating to the governance of the electricity industry in accordance with section 172O
b: ensure the accountability of electricity governance organisations in accordance with subpart 2.
1: Electricity Governance Board
172M: Establishment of Electricity Governance Board
1: This section establishes an organisation called the Electricity Governance Board ( EGB
2: EGB is a Crown entity for the purposes of the Public Finance Act 1989
172N: Principal objective of EGB
The principal objective of EGB is to ensure that electricity is generated, conveyed, and supplied to all classes of consumers in an efficient, fair, reliable, and environmentally sustainable manner.
172O: Functions of EGB
1: The functions of EGB are to—
a: formulate and make recommendations concerning electricity governance regulations and rules in accordance with this subpart:
b: administer, monitor compliance with, enforce, and apply penalties or other remedies for contraventions of electricity governance regulations and rules:
c: establish, operate, and facilitate the operation of (by contracting with other parties, entering into a joint venture company or contractual arrangement, or other means) markets for industry participants:
d: develop best practice distribution pricing methodologies and other standards and model agreements for use by industry participants:
e: provide advice to the Minister on matters concerning the electricity industry:
f: carry out any other functions the Minister may direct under section 172ZA
2: In performing its functions, EGB must promote its principal objective.
172P: Body corporate status and powers
1: EGB is a body corporate with perpetual succession.
2: Subject to this Act, EGB has—
a: full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and
b: for the purposes of paragraph (a)
3: EGB may exercise its powers only for the purpose of carrying out its functions.
172Q: Role of board of EGB
1: All decisions relating to the operation of EGB must be made by or under the authority of the members of EGB who number not less than the required quorum acting together as a board ( EGB's board board
2: EGB's board has all the powers necessary for carrying out its role in subsection (1)
172R: Membership of EGB's board
EGB's board must consist of members numbering no less than 5 and no more than 9. Duties of members
172S: Duties of members
1: A member, when acting as a member, must act—
a: in good faith; and
b: with reasonable care, diligence, and skill; and
c: with honesty and integrity; and
d: in accordance with clauses 9 to 12 of Schedule 2A
2: A member, when acting as a member, must not act as a representative of, or promote the interests or views of, any organisation to which the member belongs, a particular industry participant, or a particular group of industry participants.
172T: Collective duties of EGB's board
EGB's board must—
a: not contravene, or cause EGB or any subsidiary of EGB to contravene, this Act; and
b: ensure that EGB, and endeavour to ensure that any subsidiary of EGB, acts in a manner consistent with the objectives and functions of EGB and with EGB's current statement of intent and purchase agreement; and
c: ensure that EGB, and endeavour to ensure that any subsidiary of EGB, performs its functions efficiently and effectively and in a manner consistent with the spirit of service to the public; and
d: ensure that EGB, and endeavour to ensure that any subsidiary of EGB, operates in a financially responsible manner and, for this purpose, that it—
i: endeavours to maintain its long-term financial viability; and
ii: endeavours to ensure that its total operating expenses do not exceed its total operating revenues; and
iii: endeavours to act as a successful going concern; and
iv: prudently manages its assets and liabilities.
172U: Members accountable to Minister
1: A member is accountable to the Minister for performing his or her duties and responsibilities as a member.
2: If EGB's board breaches any of its duties under section 172T
a: each member of that board is accountable to the Minister for the breach; and
b: that breach justifies all or any of the members being removed from office.
3: Subsection (2)
a: he or she did not know and could not reasonably be expected to know that the duty was to be or was being breached; or
b: he or she took all reasonable steps to prevent the duty being breached.
4: The duties of members and the board under section 172S section 172T
172V: Further provisions as to EGB and EGB's board in
Schedule 2A Schedule 2A Role of EGB in relation to electricity governance regulations and rules
172W: EGB to make recommendations concerning electricity governance regulations and rules
1: EGB must, in accordance with this subpart, formulate and make recommendations concerning regulations or rules under the following sections:
a: section 172D
b: section 172F
c: section 172H
2: EGB's recommendations under subsection (1) sections 172J and 172K
172X: Objectives of recommendations
In formulating recommendations under section 172W
a: have regard to its principal objective; and
b: ensure the recommendations are consistent with any direction under section 172ZA
c: have regard to objectives in accordance with sections 172E(2)(c) and 172G(2)(e)
172Y: Obligation to consult
EGB must, in formulating recommendations, consult with persons in accordance with sections 172E(2)(b) and 172G(2)(b)
172Z: Minister must have regard to recommendations
1: The Minister must have regard to a recommendation by EGB in exercising any of his or her powers or functions in relation to electricity governance regulations or rules, but may, in his or her absolute discretion,—
a: decide not to act on that recommendation or, for regulations or rules for a purpose contained in section 172F
b: defer, for any period and reasons the Minister thinks fit, making a decision on the recommendation:
c: refer back to EGB its recommendation for further consideration by EGB.
2: If the Minister decides not to act on an EGB recommendation, to substantially depart from an EGB recommendation, or to defer making a decision on an EGB recommendation, the Minister must publish a notice in the Gazette Power to direct EGB
172ZA: Power to direct EGB
1: The Minister may direct EGB—
a: to carry out any other functions:
b: to give effect to a government policy set out in the direction:
c: on outcomes to be achieved by EGB or objectives for EGB that are contained in, or are related to outcomes or objectives that are contained in, the statement of government policy under section 172ZK
d: on the following matters:
i: which matters EGB must formulate and make recommendations on under section 172W
ii: principles or objectives for those recommendations.
2: A direction—
a: under subsection (1)(a)
b: under subsection (1)(b) to (d)
3: EGB must, in performing its functions, comply with a direction given under subsection (1) subsection (4)
4: A direction to EGB must not require EGB, in respect of a particular person, to make a particular decision, or to do or refrain from doing a particular act, or to bring about a particular result (other than in relation to Transpower).
172ZB: Procedure for giving direction
1: The Minister must consult with EGB before giving a direction to EGB.
2: The direction must be given in writing, be dated, and be signed by the Minister.
3: As soon as practicable after giving the direction, the Minister must—
a: publish a copy of it in the Gazette
b: present a copy of it to the House of Representatives.
4: The direction may be amended, revoked, or replaced in the same way as it may be given. Levy of industry participants
172ZC: Levy of industry participants
1: Every industry participant (or prescribed class of industry participants) must pay to the Minister a levy prescribed by regulations under section 172ZE
2: The regulations under that section may—
a: specify the amount of levies or method of calculating or ascertaining the amount of levies, on the basis that the estimated costs of performing EGB's functions, powers, and duties under this Act, and of collecting the levy money, should be met fully out of levies:
b: include or provide for including in levies any shortfall in recovering those actual costs:
c: refund or provide for refunds of any over-recovery of those actual costs:
d: provide different levies for different classes of industry participants:
e: specify the financial year or part financial year to which those levies apply, and apply to that financial year or part and each subsequent financial year until revoked or replaced:
f: provide for the payment and collection of those levies:
g: for the first financial year to which the levy applies, include in the levy amount or method the costs of performing EGB's functions, duties, and powers under this Act from the date on which this subpart comes into force, irrespective of the fact that the regulations may be made and come into effect after that date:
h: require payment of a levy for a financial year or part financial year, irrespective of the fact that the regulations may be made after that financial year has commenced:
i: exempt or provide for exemptions from, or provide for waivers of, the whole or any part of the levy for any case or class of cases.
3: The amount of any unpaid levy is recoverable in any court of competent jurisdiction as a debt due to the Crown.
4: In this section, industry participant Miscellaneous
172ZD: Accountability of EGB
EGB is accountable to the Minister in accordance with Part V of the Public Finance Act 1989
172ZE: Regulations
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for all or any of the following purposes:
b: providing for the levies under section 172ZC
c: providing for any other matters contemplated by this subpart or necessary for its administration or necessary for giving it full effect.
172ZF: EGB is public authority
1: EGB is a public authority for the purposes of the Inland Revenue Acts.
2: In this section, Inland Revenue Acts section 3(1) of the Tax Administration Act 1994
172ZG: Amendment to
Ombudsmen Act 1975 The Ombudsmen Act 1975 Part II of the First Schedule Electricity Governance Board and every subsidiary of the Electricity Governance Board.
172ZH: Amendment to
Public Finance Act 1989 The Public Finance Act 1989 Sixth Schedules Electricity Governance Board.
2: Accountability of electricity governance organisations
172ZI: Application of subpart
1: This subpart applies to—
a: EGB, if it is established; and
b: any person to whom it applies under subsection (2) and each is called an electricity governance organisation
2: The Minister may, by notice in the Gazette
a: apply this subpart to any person or group of persons involved in developing rules or standards applying to any industry participants under a contract, arrangement, or understanding between those participants, or in monitoring or enforcing the contract, arrangement, or understanding, or otherwise involved in the governance of the electricity industry; and
b: cease to apply this subpart to that person or group.
3: The Minister may nominate a report date for that person or group in the notice under subsection (2)
172ZJ: Interpretation
In this subpart, unless the context otherwise requires,— GPS objectives and outcomes section 172ZK performance standards section 172ZL report date
a: for EGB, the close of 30 June in each calendar year:
b: for other electricity governance organisations, the close of 30 June in each calendar year or any other date in each calendar year that the Minister nominates as the organisation's report date in the notice under section 172ZI reporting period
a: the period from the date on which this subpart applies to the organisation under section 172ZI
b: each subsequent 12-month period ending on the organisation's report date.
172ZK: Setting of GPS objectives and outcomes
1: The Minister must set objectives and outcomes that the Government wants an electricity governance organisation to pursue in relation to the governance of the electricity industry, and against which an electricity governance organisation must report and be examined in accordance with this subpart.
2: The Minister must set those objectives and outcomes by—
a: giving the electricity governance organisation a statement of government policy containing those objectives and outcomes ( GPS objectives and outcomes
b: giving the electricity governance organisation an amendment to, or replacement of, that statement.
3: Each statement (or amendment to, or replacement of, a statement) under subsection (2) Gazette
172ZL: Agreement of annual performance standards
1: An electricity governance organisation (other than EGB) must, within 3 months after the commencement of each reporting period, agree performance standards with the Minister for that reporting period.
2: The performance standards—
a: must include the performance targets and other measures by which the performance of the organisation may be judged; and
b: must state the overall standard of performance by the organisation that will be considered satisfactory at the end of the reporting period ( satisfactory performance standard
c: must be matters against which the organisation's actual performance may be reported and audited; and
d: must relate to all of the GPS objectives and outcomes that are affected, or could be affected, by a wholesale market or a transmission matter contained in section 172D
e: may relate to any other GPS objectives and outcomes, but to no other matter.
3: Before agreeing the performance standards, the Minister must consult with the Auditor-General on whether the proposed performance standards meet the requirements in subsection (2)(c), (d), and (e)
172ZM: Annual performance report to Minister
1: An electricity governance organisation must, within 3 months after the organisation's report date, deliver to the Minister a report on its operations during the last reporting period, and submit that annual report to the Auditor-General for an assurance audit under section 172ZO
2: The annual report—
a: must contain the information that is necessary to enable an informed assessment to be made of the performance of the organisation against the GPS objectives and outcomes and (for organisations other than EGB) against the performance standards; but
b: need not contain information on the organisation's financial performance.
172ZN: Minister must present annual performance report to House of Representatives
The Minister must present copies of every annual report provided to him or her under section 172ZM
172ZO: Assurance audit by Auditor-General
1: The Auditor-General—
a: must examine the annual report provided to the Auditor-General under section 172ZM
b: may, at any time, examine the information to be contained in the annual report and the systems of an electricity governance organisation, and report on that examination to the Minister and the House of Representatives.
2: The Auditor-General's report under subsection (1)
a: provide assurance on—
i: the appropriateness, adequacy, and accuracy of the information contained, or to be contained, in the annual report; and
ii: whether the annual report enables, or is likely to enable, an informed assessment to be made of the matters stated in section 172ZM(2)(a)
b: (for organisations other than EGB) state whether or not the organisation has met the satisfactory performance standard or that the organisation's annual report does not enable an informed assessment of whether or not it has done so.
3: A report under subsection (1)(a) negative annual audit report section 5 of the Electricity Amendment Act 2001
172ZP: Report by Parliamentary Commissioner for Environment
1: The Parliamentary Commissioner for the Environment must examine, in accordance with subsection (2)
2: The Parliamentary Commissioner for the Environment—
a: must, as soon as practicable after each report date of an electricity governance organisation, carry out the examination in subsection (1)
b: in addition, may carry out the examination in subsection (1)
3: A report under subsection (2)(a) section 172D negative annual audit report section 5 of the Electricity Amendment Act 2001
172ZQ: Functions under this subpart
1: The Parliamentary Commissioner for the Environment may exercise all of the Commissioner's powers under the Environment Act 1986
2: The Public Audit Act 2001 section 4 of that Act
3: The functions conferred on the Auditor-General and the Parliamentary Commissioner for the Environment by this subpart are additional to, and do not limit, the Auditor-General's or the Commissioner's functions, duties, and powers under the Public Audit Act 2001 Environment Act 1986
172ZR: Offences
1: Every person commits an offence who,—
a: when required to do so by or under this subpart, knowingly fails to produce any information that is in that person's possession or under that person's control in relation to the management, performance, or activities of an electricity governance organisation:
b: intentionally obstructs, hinders, or resists any person in the exercise of the person's powers under any enactment in relation to the person's functions under this subpart:
c: makes a statement or gives information when required to do so by or under this subpart, knowing that the statement or information is false or misleading.
2: A person who commits an offence under subsection (1)
a: in the case of an individual, to a fine not exceeding $2,000:
b: in the case of a person or organisation other than an individual, to a fine not exceeding $5,000.
17: New
Part 16 The principal Act is amended by inserting, before the heading Repeals, revocations, amendments, and savings
16: Repeals, etc, and transitional provisions
18: New
Schedule 2A The principal Act is amended by inserting, after Schedule 2 2A
19: Transitional provision for Transpower's pricing methodology on and after 26 July 2001
1: Any person who has assets that are directly connected to the national grid must pay for grid connection services provided on and after 26 July 2001 the amount that is charged by Transpower in accordance with the transitional pricing methodology.
2: The transitional pricing methodology
3: The amount payable under subsection (1)
a: is recoverable in any court of competent jurisdiction as a debt due to Transpower; and
b: may be challenged in any proceedings to recover the debt on the ground that Transpower has incorrectly applied the methodology in a manner that is adverse to the payer, but the methodology itself may not be challenged.
4: This section applies—
a: except to the extent that it would limit or override any new or existing agreement that is binding on Transpower and the other person; and
b: until the end of the transitional period.
5: The transitional period
6: Subsection (5) substituted 26 January 2004 30 Electricity Amendment Act 2004 Subsection (6) repealed 26 January 2004 30 Electricity Amendment Act 2004
20: Savings provision for Transpower's pricing methodology before 26 July 2001
1: No person who owns assets that are directly connected to the national grid may, on or after 26 July 2001,—
a: recover in court any amount paid for grid connection services provided by Transpower before 26 July 2001; or
b: make any set-off, counterclaim, or deduction in respect of all or any part of such an amount, against or from any amount that is owing to Transpower under section 19
2: Transpower may not, on or after 26 July 2001, recover in court any amount—
a: that has been charged in respect of grid connection services provided by Transpower before 26 July 2001; and
b: that is the subject of a genuine dispute relating to the transitional pricing methodology (or a previous pricing methodology relating to grid connection services), which dispute has been notified in writing to Transpower before 26 July 2001.
3: Subsection (1)
21: Validations of actions by persons without electricity operator status
1: Actions taken by persons in the following circumstances are as lawful as if the persons who carried out the actions were electricity operators under section 4
a: actions carried out, at any time during the period commencing on 1 April 1993 and ending with the date of commencement of the Electricity Operators Order 1995
b: actions carried out, at any time during the period commencing on 23 June 1998 and ending with 28 December 2000, by the companies currently known as United Networks Limited, VECTOR Limited, Orion New Zealand Limited, and Eastland Network Limited.
2: Subsection (1)
22: Amendment to
Public Audit Act 2001
1: Schedule 1 Public Audit Act 2001 Electricity trusts that are customer trusts or community trusts, or both (as those terms are defined in sections 3 and 38 of the Electricity Industry Reform Act 1998
2: Schedule 2 Public Audit Act 2001
a: omitting the item Electricity Ashburton Limited
b: omitting the item Otago Power Limited