Electricity Industry Act 2010

1: Title
This Act is the Electricity Industry Act 2010.
2: Commencement
1: Sections 34 35 116 to 127 130
2: The rest of this Act comes into force on 1 November 2010.
2A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1 Section 2A inserted 1 September 2022 section 4 Electricity Industry Amendment Act 2022
3: Act binds the Crown
This Act binds the Crown.
1: Preliminary provisions
4: Purpose
The purpose of this Act is to provide a framework for the regulation of the electricity industry.
5: Interpretation
In this Act, unless the context otherwise requires,— ancillary service agent approved test house assets Authority Electricity Authority section 12 breach section 6 business Code Electricity Industry Participation Code subpart 3 clearing manager community trust
a: at least 90% of the income beneficiaries comprise persons who are a class or classes identified by reference to their domicile or location or operation within the geographic area or areas of operation of the distributor or retailer; and
b: at least 90% of its income distributions are paid to those beneficiaries or for purposes related to that geographic area or areas consumer customer co-operative section 2(1) customer trust
a: at least 90% of the income beneficiaries comprise persons who are a class or classes identified by reference to any of—
i: the person's connection to the lines of the distributor:
ii: the person's liability for payment for supply of electricity from the retailer that retails to customers that are connected to the distributor's network:
iii: the person's receipt of electricity from the retailer that retails to customers that are connected to the distributor's network:
iv: the person's liability for payment for the connection to the lines of the distributor:
v: the person's liability for payment for line services supplied by the distributor; and
b: at least 90% of its income distributions are paid to those beneficiaries distribution distribution agreement section 44A(1) distributor domestic consumer domestic premises section 5(1)(c) to (k) generation generator industry participant participant section 7 industry service provider
a: provides a service or performs a role in the electricity industry that is recognised in the Code, including the people listed in section 7(2)
b: is not any of the industry participants identified in section 7(1)(a) to (h) line function services section 2(1) lines load aggregator interruptible manager
a: means a person who, whether alone or jointly with any other person, manages, or directs or supervises the management of, the whole or a substantial part of the business and affairs of the person; and
b: includes,—
i: in relation to a trust, a trustee:
ii: in relation to a local authority, a member; but
c: does not include,—
i: in relation to a body corporate, a director of that body corporate:
ii: in relation to a business in which a local authority or any other person has an interest, a member of that local authority or manager of that person only as a result of that person having that position market operation service provider
a: the registry manager:
b: the reconciliation manager:
c: the pricing manager:
d: the clearing manager:
e: the market administrator:
f: the wholesale information trading system provider:
g: any other role identified in regulations as a market operation service provider role metering equipment owner meter owner metering equipment provider
a: assumes responsibility for any metering installation; or
b: is appointed to be responsible for any metering installation Minister Ministry national grid network publicise
a: on the person's Internet site at all reasonable times (except to the extent that doing so would infringe copyright in the material or be inconsistent with any enactment or rule of law); and
b: in any other manner that the person may decide publicly available
a: the document or information is available for inspection, free of charge, on an Internet site that is publicly accessible at all reasonable times (except to the extent that doing so would infringe copyright in the material or be inconsistent with any enactment or rule of law); and
b: a copy of the document or information is available for inspection at all reasonable times, free of charge, at the head office of the person required to make it publicly available or, if the person is a Minister, at the head office of the relevant Ministry; and
c: copies of the document may be purchased by any person at a reasonable price purchaser regulations retailer retailing Rulings Panel section 23 small business consumer
a: that is in a class specified in regulations made under section 113A
b: if no such regulations have been made, that consumes less than 40 MWh of electricity per year specified person section 32(3) system operator section 8 trader in electricity
a: a person who buys or sells contracts under which the payment obligations may change according to the changes in the price at which electricity is bought or sold in any market in New Zealand; and
b: any related clearing house or exchange transmission Transpower works
a: means any fittings (as defined in section 2(1)
b: does not include any part of an electrical installation (as defined in section 2(1) Section 5 assets inserted 1 September 2022 section 5(3) Electricity Industry Amendment Act 2022 Section 5 business inserted 1 September 2022 section 5(3) Electricity Industry Amendment Act 2022 Section 5 Code repealed 1 September 2022 section 5(1) Electricity Industry Amendment Act 2022 Section 5 Code Electricity Industry Participation Code inserted 1 September 2022 section 5(1) Electricity Industry Amendment Act 2022 Section 5 distribution agreement inserted 1 September 2022 section 5(3) Electricity Industry Amendment Act 2022 Section 5 load aggregator amended 1 September 2022 section 5(2) Electricity Industry Amendment Act 2022 Section 5 manager inserted 1 September 2022 section 5(3) Electricity Industry Amendment Act 2022 Section 5 small business consumer inserted 1 September 2022 section 5(3) Electricity Industry Amendment Act 2022 Section 5 specified person inserted 30 March 2025 section 51 Regulatory Systems (Economic Development) Amendment Act 2025
6: Extended meaning of breach
1: In this Act, the regulations, and the Code, unless the context otherwise requires, a reference to a person who breaches a provision of this Act, the regulations, or the Code is a reference to a person who—
a: breaches the provision; or
b: attempts to breach the provision; or
c: aids, abets, counsels, or procures any other person to breach the provision; or
d: induces, or attempts to induce, any other person, whether by threats or promises or otherwise, to breach the provision; or
e: is in any way, directly or indirectly, knowingly concerned in, or party to, the breach by any other person of the provision; or
f: conspires with any other person to breach the provision.
2: A breach includes a failure to comply. SR 2003/374 r 5(1)
6A: Meaning of involved in
1: In this Act, unless the context otherwise requires, a person is involved in
a: carries on a business as an industry participant, either alone or together with its associates and either on its own or another’s behalf; or
b: exceeds the 10% threshold in respect of a business that is an industry participant; or
c: has material influence over a business that is an industry participant.
2: A person exceeds the 10% threshold
a: has more than 10% of the control rights in the business; or
b: has more than 10% of the equity return rights in the business; or
c: is one of 2 or more associates who, in aggregate, have more than 10% of the control rights in the business; or
d: is one of 2 or more associates who, in aggregate, have more than 10% of the equity return rights in the business.
3: This section is subject to Schedule 2
4: In this section and in Schedule 2 associate clause 8 control right clause 5 director equity return right clause 6 financial year involvement material influence clause 7 rights Section 6A inserted 1 September 2022 section 6 Electricity Industry Amendment Act 2022
2: Electricity industry governance
1: Who does what
Industry participants and specified persons Heading amended 30 March 2025 section 52 Regulatory Systems (Economic Development) Amendment Act 2025
7: Industry participants
1: The following are industry participants for the purposes of this Act:
a: a generator:
b: Transpower:
c: a distributor:
d: a retailer:
e: any other person who owns lines:
f: a person who consumes electricity that is conveyed to the person directly from the national grid:
g: a person, other than a generator, who generates electricity that is fed into a network:
h: a person who buys electricity from the clearing manager:
i: any industry service provider identified in subsection (2):
j: any other person identified in regulations made under section 109(1)(ab)
2: The following industry service providers are industry participants:
a: a market operation service provider:
b: a metering equipment provider:
c: a metering equipment owner:
d: an ancillary service agent:
e: a person that operates an approved test house:
f: a load aggregator:
g: a trader in electricity:
h: any other industry service provider identified in regulations made under section 109(1)(a)
3: The Authority is not an industry participant, except to the extent that it performs functions as an industry service provider. SR 2003/374 r 4 Section 7(1)(j) inserted 1 September 2022 section 7(1) Electricity Industry Amendment Act 2022 Section 7(2)(h) amended 1 September 2022 section 7(2) Electricity Industry Amendment Act 2022
8: Transpower is system operator
1: The system operator is Transpower.
2: As well as acting as system operator for the electricity industry, the system operator must—
a: provide information, and short- to medium-term forecasting on all aspects of security of supply; and
b: manage supply emergencies.
3: The Code must—
a: specify the functions of the system operator; and
b: specify how the system operator's functions are to be performed; and
c: set requirements relating to transparency and performance.
4: A failure to comply with subsection (2) is to be treated, for the purposes of enforcement under this Part, as a breach of the Code. SR 2003/374 r 30
9: Obligation
1: Every industry participant must—
a: register as an industry participant by supplying the Authority with the information specified in section 27(2)
b: comply with the Code.
2: A failure to comply with subsection (1) may result in an industry participant being—
a: liable to conviction for an offence under section 31
b: subject to the enforcement measures set out in this Part, in the case of failure to comply with the Code.
3: Every specified person must comply with any obligations imposed on them by the Code in accordance with section 32(3)
4: A failure to comply with subsection (3) may result in a specified person being subject to the enforcement measures set out in this Part. Section 9 heading amended 30 March 2025 section 53(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 9(3) inserted 30 March 2025 section 53(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 9(4) inserted 30 March 2025 section 53(2) Regulatory Systems (Economic Development) Amendment Act 2025
10: Exemption from obligation to register
1: Despite section 9(1)(a)
a: it is a member of a class of industry participants identified in regulations made under section 110
b: the Authority exempts the participant by issuing an individual exemption notice
i: identifies the industry participant that is exempt from the obligation to register; and
ii: gives reasons for the exemption.
2: The Authority may grant an individual exemption to an industry participant only if the Authority is satisfied that—
a: it is not necessary, for the purpose of achieving the Authority's objectives section 15
b: exempting the participant will reduce overall administration and compliance costs.
3: The Authority may amend or revoke an individual exemption, by issuing a notice
a: has given notice of the proposed amendment or revocation to the exempt participant and given the participant a reasonable opportunity to comment on the proposal; and
b: is satisfied that—
i: the amendment or revocation is necessary or desirable for the purpose of achieving the Authority's objectives section 15
ii: the benefit of the amendment or revocation outweighs any disadvantage resulting from any increased administration and compliance costs.
4: A notice issued under subsection (1)(b) or (3) must be published in the Gazette
5: The Authority must publicise a list of all current class and individual exemptions. Section 10(1)(b) amended 1 September 2022 section 8(2) Electricity Industry Amendment Act 2022 Section 10(2)(a) amended 1 September 2022 section 8(1) Electricity Industry Amendment Act 2022 Section 10(3) amended 1 September 2022 section 8(2) Electricity Industry Amendment Act 2022 Section 10(3)(b)(i) amended 1 September 2022 section 8(1) Electricity Industry Amendment Act 2022 Section 10(4) replaced 1 September 2022 section 8(3) Electricity Industry Amendment Act 2022
11: Exemption from obligation to comply with Code
1: Despite section 9(1)(b)
a: it is a member of a class of industry participants identified in regulations made under section 110
b: the Authority exempts the participant by issuing an individual exemption notice that—
i: identifies the industry participant that is exempt from the obligation to comply with the Code or specific provisions of the Code; and
ii: gives reasons for the exemption.
1A: Despite section 9(3)
a: identifies the specified person that is exempt from the obligation to comply with the Code or specific provisions of the Code; and
b: gives reasons for the exemption.
2: The Authority may grant an individual exemption to an industry participant or a specified person (as the case may be)
a: it is not necessary, for the purpose of achieving the Authority’s objectives under section 15 or specified person
b: exempting the participant or specified person
3: The Authority may grant an individual exemption on any terms or conditions that it reasonably considers are necessary.
4: The Authority may amend or revoke an individual exemption, by issuing a notice that identifies the exempt participant or specified person (as the case may be)
a: has given notice of the proposed amendment or revocation to the exempt participant or specified person or specified person
b: in relation to an amendment, is satisfied that the amendment is necessary or desirable for the purpose of achieving the Authority’s objectives in section 15
c: in relation to a revocation, is no longer satisfied of the matters in subsection (2).
5: A notice issued under subsection (1)(b), (1A), or (4) Gazette
6: The Authority must publicise a list of all current class and individual exemptions. Section 11 replaced 1 September 2022 section 9 Electricity Industry Amendment Act 2022 Section 11(1A) inserted 30 March 2025 section 54(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(2) amended 30 March 2025 section 54(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(2)(a) amended 30 March 2025 section 54(3) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(2)(b) amended 30 March 2025 section 54(3) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(4) amended 30 March 2025 section 54(4) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(4)(a) amended 30 March 2025 section 54(5) Regulatory Systems (Economic Development) Amendment Act 2025 Section 11(5) amended 30 March 2025 section 54(6) Regulatory Systems (Economic Development) Amendment Act 2025 Electricity Authority
12: Authority established
1: The Electricity Authority is established.
2: The Authority is a Crown entity for the purposes of section 7(1) Part 3
3: The Crown Entities Act 2004 1992 No 122 s 172M
13: Membership of Authority
1: The Authority comprises between 5 and 7 members.
2: When recommending a person for membership of the Authority, the Minister must have regard to the need to ensure that the Authority has amongst its members knowledge and experience of, and capability in, the following:
a: the electricity industry:
b: consumer issues:
c: business generally.
3: The Minister may not recommend a person for membership of the Authority unless he or she has first publicised an invitation for nominations from interested parties and considered any nominations received. 1992 No 122 s 172R
14: Independence of members of Authority
1: No member of the Authority, when acting as a member, may represent, or promote the interests or views of, any organisation or any particular industry participant or group of industry participants.
2: This section does not limit, and is in addition to, the duties of members set out in Part 2 1992 No 122 s 172S
15: Objectives
1: The main objective
2: The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.
3: The additional objective applies only to the Authority’s activities in relation to the dealings of industry participants with domestic consumers and small business consumers. 1992 No 122 s 172N Section 15 heading amended 31 December 2022 section 10(1) Electricity Industry Amendment Act 2022 Section 15(1) amended 31 December 2022 section 10(2) Electricity Industry Amendment Act 2022 Section 15(2) inserted 31 December 2022 section 10(3) Electricity Industry Amendment Act 2022 Section 15(3) inserted 31 December 2022 section 10(3) Electricity Industry Amendment Act 2022
16: Functions of Authority
1: The Authority's functions are as follows:
a: to maintain a register of industry participants in accordance with subpart 2
b: to make and administer the Electricity Industry Participation Code in accordance with subpart 3
c: to monitor compliance with the Act, the regulations, and the Code, and to exempt individual industry participants and specified persons
d: to investigate and enforce compliance with this Part, Part 4 see subpart 4
e: to investigate and enforce compliance with Part 3 see subpart 2
f: to undertake market-facilitation measures ( for example,
g: to undertake industry and market monitoring, and carry out and make publicly available reviews, studies, and inquiries into any matter relating to the electricity industry:
h: to contract for market operation services (but see
i: to promote to consumers the benefits of comparing and switching retailers:
ia: to undertake measures aimed at protecting the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers:
j: to perform any other specific functions imposed on it under this or any other Act.
2: Instead of, or as well as, contracting for market operation services, the Authority may itself perform—
a: the functions of the market administrator, if the Authority considers it desirable to do so; and
b: any other market operation service, but only on a temporary basis (such as when there is no current contract, or the contractor is unable or unwilling to perform the service). 1992 No 122 s 172O Section 16(1)(c) amended 30 March 2025 section 55 Regulatory Systems (Economic Development) Amendment Act 2025 Section 16(1)(f) amended 1 September 2022 section 11(1) Electricity Industry Amendment Act 2022 Section 16(1)(ia) inserted 1 September 2022 section 11(2) Electricity Industry Amendment Act 2022
17: Statements of government policy
1: In performing its functions, the Authority must have regard to any statements of government policy concerning the electricity industry that are issued by the Minister.
2: Before issuing a statement under this section, the Minister must consult with the Authority.
3: Every statement of government policy concerning the electricity industry must be—
a: conveyed to the Authority in writing; and
b: notified in the Gazette
c: presented by the Minister to the House of Representatives; and
d: made publicly available.
4: A statement of government policy concerning the electricity industry—
a: comes into effect on the date specified in the Gazette
b: may be amended, revoked, or replaced in the same way as it may be given. 1992 No 122 s 172ZK 1986 No 5 s 26 2004 No 115 s 115
18: Reviews on request by Minister
1: On written request by the Minister, the Authority must review and report on any matter relating to the electricity industry that is specified by the Minister.
2: The Minister must consult the Authority before issuing a request for a review.
3: When requesting a review, the Minister may, without limitation,—
a: specify a date by which, or a period within which, the Authority must provide its report; and
b: give the Authority any specific directions about how to conduct the review (such as directions about consultation, the issue of draft reports, timing); and
c: specify particular matters that the Authority is to consider.
4: If, in the course of a review, the Authority considers that there are matters that fall outside the scope of the review but which it should nevertheless report on to the Minister, the Authority may include a report on those matters in the final report or in a separate report.
5: Within 15 days after receiving a final report on a review conducted under this section, the Minister must make the report publicly available.
6: However, in making the report publicly available, the Minister may omit any information that he or she would be likely to withhold if it were requested under the Official Information Act 1982 Security and Reliability Council, and other advisory groups
19: Charter about advisory groups
1: The Authority must make, and make publicly available, a charter that sets out—
a: how it will establish and interact with advisory groups appointed under sections 20 21
b: when and how it will consult advisory groups on material changes to the Code; and
c: how advisory groups must operate, including provisions concerning procedure.
2: Before making a charter, the Authority must consult interested parties on a draft charter.
3: The Authority and all advisory groups must comply with the charter made under this section.
4: The first charter must be made within the first year after this section comes into force.
5: Until the first charter is made under this section,—
a: the Authority may establish and interact with advisory groups as it thinks fit; and
b: advisory groups may determine their own procedure, subject to any specific directions or requirements of the Authority.
20: Security and Reliability Council
1: The Authority must appoint a Security and Reliability Council.
2: The function of the Security and Reliability Council is to provide independent advice to the Authority on—
a: the performance of the electricity system and the system operator; and
b: reliability of supply issues.
3: The Council must meet at least once every 6 months.
4: The Council may determine its own procedure, subject to this Act and the charter (once made) prepared under section 19
5: The Authority must ensure that the members of the Council have between them appropriate knowledge and experience of the electricity industry to provide advice to the Authority, but members need not be independent persons.
6: The Authority may not appoint a person as a member of the Council unless the Authority has first publicised an invitation for nominations for membership and considered any nominations received.
7: The terms of appointment as a member of the Council are as determined by the Authority on an individual basis.
21: Other advisory groups
1: The Authority must establish 1 or more other advisory groups to provide independent advice to the Authority on the development of the Code and on market facilitation.
2: Every advisory group must include people whom the Authority considers have appropriate knowledge of, and experience in, the electricity industry and consumer issues, but members need not be independent persons.
22: Application of Crown Entities Act 2004
1: The following provisions of the Crown Entities Act 2004 section 20 21 advisory group member
a: sections 43 48 57 77 120 121 126 135
b: sections 62 to 72
2: Section 47(1)
3: Each advisory group member is deemed to be a member of the Authority for the purpose of—
a: the Authority indemnifying the member under section 122
b: the Authority effecting insurance cover under section 123
c: the application of section 125
4: For the purpose of section 152 Small Electricity Consumers Agency Heading inserted 1 September 2022 section 12 Electricity Industry Amendment Act 2022
22A: Minister may establish Small Electricity Consumers Agency
1: The Minister may establish a Small Electricity Consumers Agency by approving 1 or more persons to perform the function of the agency.
2: The Minister may approve 1 or more persons to perform the function of the agency, and each person approved may perform all or any part of that function.
3: In subsection (2), person section 5
4: In approving a person or persons under subsection (2), the Minister must be satisfied that the person has (or the persons collectively have) the ability to perform the function of the agency.
5: The agency may determine its own procedure, subject to any directions given to it by the Minister. Section 22A inserted 1 September 2022 section 12 Electricity Industry Amendment Act 2022
22B: Function of agency
1: The function of the agency is to represent and advocate for the interests of domestic consumers and small business consumers in the electricity industry.
2: The agency may carry out its function by, for example,—
a: promoting the interests of domestic consumers and small business consumers to relevant public service agencies and Crown entities; and
b: providing evidence-based advocacy on behalf of domestic consumers and small business consumers, whether in response to policy proposals or on its own initiative. Section 22B inserted 1 September 2022 section 12 Electricity Industry Amendment Act 2022 Rulings Panel
23: Continuation of Rulings Panel
1: There continues to be a Rulings Panel.
2: The Rulings Panel is the same body as the body established by regulation 160 SR 2003/374 r 160
24: Membership of Rulings Panel
1: The Rulings Panel comprises up to 5 members appointed by the Governor-General.
2: The Governor-General must appoint—
a: 1 member to be the chairperson of the Rulings Panel, who must be a barrister or solicitor of the High Court of at least 7 years' standing; and
b: 1 member to be deputy chairperson of the Rulings Panel.
3: The Governor-General may make an appointment under subsection (1) or (2) only in accordance with a recommendation by the Minister given after the Minister has consulted with the Minister of Justice and the Authority.
4: Further provisions relating to the membership of the Rulings Panel may be set out in regulations made under section 112 SR 2003/374 rr 162 165(1)
25: Function of Rulings Panel
The function of the Rulings Panel is—
a: to assist in the enforcement of the Code by—
i: hearing and determining complaints about breaches or possible breaches of the Code; and
ii: hearing and determining appeals from certain decisions made under the Code; and
iii: considering and resolving certain disputes between industry participants relating to the Code; and
iv: making appropriate remedial and other orders; and
b: to review any suspension of trading by the Authority under section 49
c: to exercise any other functions conferred on it under this Act or the regulations. SR 2003/374 r 161
26: Funding of Rulings Panel and remuneration of members
1: The Authority must fund the Rulings Panel.
2: The Authority may recover the costs of that funding from industry participants through levies payable under section 128
3: The remuneration of members of the Rulings Panel, other than remuneration covered by subsection (4), must be set by the Remuneration Authority under section 12(1)(a)(va)
4: Members of the Rulings Panel are entitled, in accordance with the fees framework (as defined in section 10(1) SR 2003/374 r 176
2: Registration
27: Register of industry participants
1: The Authority must maintain and publicise a register of industry participants.
2: The register must record—
a: the name, contact details, and business details of every current industry participant, other than a participant that is exempt from the obligation to register:
b: the date on which a participant's name was first entered in the register:
c: the date and nature of every subsequent change to the details recorded for each participant:
d: the name of every person who, after this section comes into force, has been recorded as a current industry participant but subsequently ceases to be.
3: For the purposes of the register,—
a: an industry participant's contact details
b: an industry participant's business details engaged
4: The register may, but need not, contain the names of all or any industry participants that are exempt from the obligation to be registered. SR 2003/374 rr 9 10 12 Section 27(3)(b) amended 1 September 2022 section 13 Electricity Industry Amendment Act 2022
28: Transfer of old information to register
The name, contact details, and business details of every person that, immediately before this section comes into force, is recorded as an industry participant on the register maintained by the Electricity Commission under regulation 9
a: must be transferred to the register maintained under section 27(1)
b: is deemed to have been recorded on that register on the date on which the register is established.
29: Registration and requirement to update information
1: An industry participant is registered as soon as its information is recorded, or deemed to be recorded, on the register.
2: A registered industry participant must supply updated information, as soon as practicable, if its name, contact details, or business details change. SR 2003/374 rr 8 11
30: Ceasing to be registered
1: The Authority must remove an industry participant's name, contact details, and business details from the register of current registered participants if satisfied that the person has ceased to be a participant; but the Authority may retain a record of the participant's name and business details on the register as a former participant.
2: A person ceases to be a registered industry participant when the person's name is no longer recorded on the register as a current industry participant.
3: An industry participant's obligations under the Code, and any proceedings underway or orders in effect under the Code, are not affected merely because the participant ceases to be registered as a current participant. SR 2003/374 r 14
31: Offences relating to registration
1: An industry participant that fails, without reasonable excuse, to register as an industry participant commits an offence and is liable on
2: A registered industry participant commits an offence, and is liable on section 29(2) Section 31(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 31(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
3: Electricity Industry Participation Code
Content and status of Code
32: Content of Code
1: The Code may contain any provisions that are consistent with the objectives of the Authority and are necessary or desirable to promote any or all of the following:
a: competition in the electricity industry:
b: the reliable supply of electricity to consumers:
c: the efficient operation of the electricity industry:
d: the protection of the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers:
e: the performance by the Authority of its functions:
f: any other matter specifically referred to in this Act as a matter for inclusion in the Code.
2: The Code may not—
a: impose obligations on any person other than an industry participant or a person acting on behalf of an industry participant, or the Authority (other than in accordance with subsection (3)); or
b: purport to do or regulate anything that the Commerce Commission is authorised or required to do or regulate under Part 4
c: purport to regulate any matter dealt with in or under the Electricity Act 1992
3: The Code may impose obligations on a specified person for the purpose of restricting relationships between 2 classes of industry participants, where those relationships may not otherwise be at arm’s length.
4: The Code may contain provisions that do any of the following, regardless of whether such a provision would otherwise be prohibited under subsection (2)(b):
a: set quality or information requirements for Transpower or 1 or more distributors, in relation to access to transmission or distribution networks:
b: set pricing methodologies for Transpower or 1 or more distributors.
5: Subsections (3) and (4) do not limit subsection (1).
6: In this section, pricing methodologies section 52C Section 32 replaced 1 September 2022 section 14 Electricity Industry Amendment Act 2022 Section 32(6) replaced 30 March 2025 section 56 Regulatory Systems (Economic Development) Amendment Act 2025
33: Status of Code
1: The following are secondary legislation ( see Part 3
a: the Code:
b: an amendment to the Code under section 38 40
2: If any provision of the Code conflicts with this or any other Act, or with any regulation made under this or any other Act, the Act or regulation prevails. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(a). Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(a) Publication The maker must make it publicly available (see definition in section 5 LA19 ss 73 74(1)(a) cl 14 The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP s 75 LA19 ss 74(2) 75 Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(b). Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(b) Publication The maker must: LA19 ss 73 74(1)(a) cl 14 •	notify it in the Gazette •	publicise it (see definition in section 5 •	make it publicly available (see definition in section 5 •	comply with section 40(2)(aa) The Ministry of Foreign Affairs and Trade considers that the secondary legislation may have international transparency obligations under the CPTPP s 75 LA19 ss 74(2) 75 Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 33(1) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Making and amending Code
34: Content of initial Code
Section 34 repealed 1 September 2022 section 15 Electricity Industry Amendment Act 2022
35: Certification of draft Code
Section 35 repealed 1 September 2022 section 15 Electricity Industry Amendment Act 2022
36: Code comes into force
Section 36 repealed 1 September 2022 section 15 Electricity Industry Amendment Act 2022
37: Making Code accessible
Section 37 repealed 28 October 2021 section 3 Secondary Legislation Act 2021
38: Authority amends Code
1: The Authority may amend the Code at any time, subject to section 39 section 54V
2: An amendment may be an addition, an omission, a substitution, or a complete replacement.
3:
4: An amendment may not come into force until a date that is at least 28 days after the date on which it is published under the Legislation Act 2019 see section 33 Section 38(3) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Section 38(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021
39: Consultation on proposed amendments
1: Before amending the Code, the Authority must—
a: publicise a draft of the proposed amendment; and
b: prepare and publicise a regulatory statement; and
c: consult on the proposed amendment and the regulatory statement.
2: The regulatory statement required for a proposed amendment to the Code must include the following:
a: a statement of the objectives of the proposed amendment:
b: an evaluation of the costs and benefits of the proposed amendment:
c: an evaluation of alternative means of achieving the objectives of the proposed amendment.
3: Despite subsection (1), the Authority need not comply with subsection (1)(b) or (c) if it is satisfied on reasonable grounds that—
a: the nature of the amendment is technical and non-controversial; or
b: there is widespread support for the amendment among the people likely to be affected by it; or
c: there has been adequate prior consultation (for instance, by or through an advisory group) so that all relevant views have been considered.
40: Urgent amendments to Code
1: The Authority may amend the Code without complying with section 39(1)
2: Every amendment made under this section—
aa: must be published (as required under section 33
a: is not subject to section 38(4)
b: expires on the date that is 9 months after the date on which it comes into force, unless it is revoked earlier under section 40A 1992 No 122 s 172E(3) Section 40(1) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 40(2)(aa) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 40(2)(a) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 40(2)(b) replaced 1 September 2022 section 16 Electricity Industry Amendment Act 2022
40A: Revocation of urgent amendments
1: The Authority may revoke an amendment made under section 40 section 39(1)
a: the Authority considers that the circumstances that gave rise to the amendment no longer exist or have changed significantly; and
b: the Authority considers that, as a result, the continued application of the amendment is not required.
2: A revocation made under this section—
a: must be published (as required under section 33
b: is not subject to section 38(4) Section 40A inserted 1 September 2022 section 17 Electricity Industry Amendment Act 2022
41: Authority to publish consultation charter
1: The Authority must develop, issue, and make publicly available a consultation charter that includes guidelines, not inconsistent with this Act, relating to the processes for amending the Code and consulting on proposed amendments.
2: However, no amendment to the Code is invalid merely because—
a: there was no consultation charter at the time the amendment was consulted on or made; or
b: the Authority failed to comply with the charter. Specific new matters in Code Heading repealed 1 September 2022 section 18 Electricity Industry Amendment Act 2022
42: Specific new matters to be in Code
Section 42 repealed 1 September 2022 section 18 Electricity Industry Amendment Act 2022
43: Minister may amend Code to include new matters
Section 43 repealed 1 September 2022 section 18 Electricity Industry Amendment Act 2022 Other Heading amended 1 September 2022 section 19 Electricity Industry Amendment Act 2022
44: Transmission agreements
1: Without limiting section 32 transmission agreement
2: The Code may prescribe default terms and conditions that are deemed to be included in transmission agreements.
3: The parties to a transmission agreement may, by mutual consent, agree to modify any default terms and conditions, but only if and to the extent that the Code permits those terms and conditions to be modified.
4: Every transmission agreement between Transpower and an industry participant is deemed to include a provision under which the industry participant agrees to pay Transpower any amounts that Transpower charges the industry participant in accordance with the transmission pricing methodology.
5: A transmission agreement is binding on both parties and enforceable as if it were a contract between the parties that had been freely and voluntarily entered into.
6: If the parties do not comply with a requirement in the Code to enter into 1 or more transmission agreements, the default terms and conditions in the Code, and the provision in subsection (4), are binding on both parties and enforceable as if they were set out in a transmission agreement. 1992 No 122 s 172KA
44A: Distribution agreements
1: Without limiting section 32 distribution agreement
2: The Code may prescribe default terms and conditions that are deemed to be included in distribution agreements, including terms and conditions that relate to quality or information requirements.
3: The parties to a distribution agreement may, by mutual consent, agree to modify any default terms and conditions, but only if and to the extent that the Code permits those terms and conditions to be modified.
4: A distribution agreement is binding on both parties and enforceable as if it were a contract between the parties that had been freely and voluntarily entered into.
5: If the parties do not comply with a requirement in the Code to enter into 1 or more distribution agreements, the default terms and conditions in the Code are binding on the parties and enforceable as if they were set out in a distribution agreement. Section 44A inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
44B: Minister may amend Code to include specified matters
1: The Minister may amend the Code by including provisions for any matter specified in subsection (2) if the Minister—
a: considers that the Code’s provisions for the specified matter are not satisfactory; and
b: is satisfied that the amendment will further the Authority’s objectives in section 15
2: The matters referred to in subsection (1) are as follows:
a: requirements for retailers to process consumer requests for information about their electricity consumption in a timely way:
b: limitations on retailer saves and win-backs:
c: requirements for retailers to provide information to the Authority to enable the Authority to better direct its efforts under section 16(1)(i)
d: requirements for distributors to offer retailers standard terms for access to their networks:
e: requirements for certain categories of industry participant to make available information directed at improving the performance of the wholesale market:
f: requirements for certain industry participants to act as market makers in relation to the trading of some wholesale electricity contracts:
g: requirements for some or all industry participants that are both generators and retailers to release information about the profitability of their retailing activities.
3: The Minister may amend the Code under this section as if the Minister were the Authority, and sections 38 to 40
4: Before amending the Code, the Minister must consult the Authority (in addition to any consultation required under section 39
5: The power given by this section may not be exercised earlier than 1 year after, and not more than 3 years after, the date on which this section comes into force.
6: In this section,— save win-back Section 44B inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022 Application of other Acts Heading inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
44C: Interpretation
In sections 44D to 44F
a: relates to corporate separation
b: relates to arm’s-length rules Section 44C inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
44D: Not interconnected under Commerce Act 1986
1: For the purposes of Part 2 sections 36 36A
2: Subsection (1) applies despite section 2(7) 2010 No 116 s 92 Section 44D inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
44E: Illegal contracts
1: An agreement lawfully entered into does not become illegal or unenforceable by any party by reason of the fact that its performance is in breach of a provision in the Code relating to corporate separation or arm’s-length rules.
2: An agreement entered into in breach of a Code provision relating to corporate separation or arm’s-length rules is voidable, at the option of any party to the agreement who is not in breach of the Code provision, by notice in writing to the other party or parties, at any time within 1 month after the innocent party has notice that the agreement is in breach of the Code provision. 2010 No 116 s 93 Section 44E inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
44F: Substance matters, not form
Any question under a provision in the Code relating to corporate separation or arm’s-length rules is to be determined according to the nature, substance, and economic effect of the relevant interest or relationship or other facts, and independently of form. 2010 No 116 s 94 Section 44F inserted 1 September 2022 section 20 Electricity Industry Amendment Act 2022
4: Monitoring and enforcement
Authority's powers and procedures
45: Purposes of exercise of Authority's monitoring, investigation,
enforcement, and review powers The purposes for which the powers in section 46
a: carrying out the Authority's monitoring functions, which are to—
i: monitor compliance with this Act (including Part 3
ii: undertake and monitor the operation and effectiveness of market-facilitation measures under section 16(1)(f)
iii: undertake industry and market monitoring, and carry out any other function referred to in section 16(1)(g)
b: carrying out the Authority's function of investigating breaches or possible breaches of, and enforcing compliance with, this Part, Part 4
c: carrying out a review and producing a report in response to a request by the Minister under section 18 1992 No 122 s 172KB Section 45 heading amended 1 September 2022 section 21(1) Electricity Industry Amendment Act 2022 Section 45(c) inserted 1 September 2022 section 21(2) Electricity Industry Amendment Act 2022
46: Authority's monitoring, investigation,
enforcement, and review powers
1: The Authority may exercise the powers in this section,—
a: in relation to an industry participant, only for a purpose described in section 45
b: in relation to a specified person, only for a purpose described in section 45(a)(i) or (b)
2: The Authority may require an industry participant or a specified person
a: provide, within any reasonable time specified by the Authority, any information, papers, recordings, and documents that are in the possession, or under the control, of the participant or specified person
b: permit its officers or employees to be interviewed (which interview may be recorded) and ensure as far as possible that they are made available for interview and answer truthfully and fully any questions put to them:
ba: if a specified person is a natural person, make themselves available for interview (which may be recorded) and to answer truthfully and fully any questions put to them:
c: give all other assistance that may be reasonable and necessary to enable the Authority to carry out its functions and exercise its powers.
3: Nothing in this section requires a person to give the Authority access to any premises, except for a purpose described in section 45(b) section 47
4: If an industry participant or a specified person section 54 1992 No 122 s 172KB Section 46 heading amended 1 September 2022 section 22 Electricity Industry Amendment Act 2022 Section 46(1) replaced 30 March 2025 section 57(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 46(2) amended 30 March 2025 section 57(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 46(2)(a) amended 30 March 2025 section 57(3) Regulatory Systems (Economic Development) Amendment Act 2025 Section 46(2)(ba) inserted 30 March 2025 section 57(4) Regulatory Systems (Economic Development) Amendment Act 2025 Section 46(4) amended 30 March 2025 section 57(5) Regulatory Systems (Economic Development) Amendment Act 2025
47: Power to search
1: The Authority may, for a purpose specified in section 45(b) authorised person or a specified person Part 4
2: An issuing officer (within the meaning of section 3 subpart 3 or a specified person Part 4
3: The provisions of Part 4 sections 118 119 1992 No 122 s 172KD 1986 No 5 s 98A Section 47(1) amended 30 March 2025 section 58 Regulatory Systems (Economic Development) Amendment Act 2025 Section 47(2) amended 30 March 2025 section 58 Regulatory Systems (Economic Development) Amendment Act 2025 Section 47(2) amended 1 October 2012 section 239(2) Search and Surveillance Act 2012 Section 47(3) replaced 1 October 2012 section 239(3) Search and Surveillance Act 2012
47A: Sharing of information and documents with public service agencies, statutory entities, gas industry body, and overseas regulators
1: The Authority may provide to a public service agency, a statutory entity, the gas industry body, or an overseas regulator any information, or a copy of any document, that the Authority—
a: holds in relation to the performance or exercise of the Authority’s functions, powers, or duties under this Act or any other legislation; and
b: considers may assist, as the case may be,—
i: the public service agency, statutory entity, or gas industry body in the performance or exercise of its functions, powers, or duties under any legislation; or
ii: the overseas regulator in the performance or exercise of the overseas regulator’s functions, powers, or duties under foreign law.
2: The Authority may provide information, or a copy of a document, under this section only if the Authority is satisfied that—
a: doing so will not substantially affect the performance of its functions; and
b: appropriate protections are or will be in place for the purpose of maintaining the confidentiality of anything provided (in particular, information that is personal information within the meaning of the Privacy Act 2020
3: The Authority may use any information, or a copy of any document, in the Authority’s performance or exercise of its functions, powers, or duties under any legislation if the information or copy is provided to the Authority—
a: by a public service agency, a statutory entity, or the gas industry body under any legislation; or
b: by an overseas regulator.
4: In this section and section 47B gas industry body section 43D overseas regulator
a: that are related to the regulation of New Zealand’s electricity markets; or
b: that otherwise correspond with, or are similar to, any of those conferred on the Authority public service agency section 5 statutory entity Schedule 1
5: This section applies despite anything to the contrary in any contract, deed, or document.
6: Nothing in this section limits the Privacy Act 2020 section 17 1986 No 5 s 99AA 2011 No 5 s 30 2021 No 31 s 282 Section 47A inserted 1 September 2022 section 23 Electricity Industry Amendment Act 2022
47B: Authority may impose conditions on provision of information or documents
1: The Authority may impose any conditions in relation to providing information, or a copy of a document, to a public service agency, a statutory entity, the gas industry body, or an overseas regulator (whether provided in compliance with a request or otherwise).
2: The Authority must, in considering what conditions to impose, have regard to whether conditions are necessary or desirable in order to protect the privacy of any individual.
3: The conditions may include, without limitation, conditions relating to—
a: maintaining the confidentiality of anything provided (in particular, information that is personal information within the meaning of the Privacy Act 2020
b: the storing of, the use of, or access to anything provided:
c: the copying, returning, or disposing of copies of documents provided:
d: payment of the costs incurred by the Authority in providing anything or in generally complying with a request. 1986 No 5 s 99AB 2011 No 5 s 33 2021 No 31 s 283 Section 47B inserted 1 September 2022 section 23 Electricity Industry Amendment Act 2022
48: Privileges protected
1: Nothing in section 46
2: If the Authority requires an industry participant or a specified person to do anything referred to in section 46
3: However, any self-incriminating statement or document made or given by an officer or employee, or an industry participant or a specified person 1992 No 122 s 172KC Section 48(2) replaced 30 March 2025 section 59(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 48(3) amended 30 March 2025 section 59(2) Regulatory Systems (Economic Development) Amendment Act 2025
49: Authority may suspend trading in case of insolvency
1: This section applies to a generator or purchaser that—
a: is unable to pay its debts; or
b: calls a meeting for the purpose of Part 14
c: is adjudicated bankrupt; or
d: in the case of a company, society, or partnership, has a receiver or statutory manager or similar person appointed in respect of it or of all or any of its assets; or
e: is put into liquidation.
2: A generator or purchaser is adjudicated bankrupt if,—
a: in the case of a partnership, all of the partners are adjudicated bankrupt; or
b: in the case of an individual, that individual is adjudicated bankrupt.
3: The Authority may suspend the generator's or purchaser's rights to make bids or offers under the Code, with effect from a time to be determined by the Authority, which must be a time later than the relevant event under subsection (1).
4: Despite any suspension of trading ordered by the Authority, the generator or purchaser must continue to meet its common quality obligations under the Code, to the extent that the suspension order permits.
5: After a suspension order under this section takes effect,—
a: the Authority may order that any rights that were suspended be reinstated in respect of the generator or purchaser; and
b: the Authority may apply to the Rulings Panel for a termination order in respect of the generator or purchaser; and
c: the generator or purchaser may apply to the Rulings Panel to review the suspension by the Authority; and the Rulings Panel may, on review, exercise all the powers that the Authority has under subsection (3) and paragraph (a) of this subsection. SR 2003/374 rr 143 144 145 Code enforcement
50: Complaints, appeals, and disputes
1: Complaints about breaches or possible breaches of the Code must be made to the Authority at first instance.
2: The Authority must deal with complaints in accordance with this Part and the regulations.
3: Complaints may subsequently be referred to the Rulings Panel, in accordance with this Part and the regulations, by either the Authority or an industry participant.
4: The Rulings Panel may determine appeals against decisions made under the Code, and resolve disputes between industry participants that relate to the Code, that are of a kind that are identified in the regulations or the Code.
5: If the regulations or the Code prescribe practices and procedures in relation to any kind of such appeal or dispute, the Rulings Panel must apply those practices and procedures when dealing with the appeal or dispute.
51: Interim injunctions
1: The Authority may at any time apply to the High Court for the grant of an interim injunction—
a: restraining an industry participant or a specified person
b: requiring an industry participant or a specified person
2: The court may grant the injunction if, in the opinion of the court, it is desirable to do so.
3: Subsection (2) applies, in the case of an injunction under subsection (1)(a),—
a: whether or not the participant or specified person
b: whether or not there is an imminent danger of substantial damage to any person if the participant or specified person
4: The court may rescind or vary the injunction on application by the Authority, any participant, or any specified person
5: The court must not require the Authority, as a condition of granting an interim injunction, to give an undertaking as to damages, and must not, when determining the application, take into account the fact that the Authority is not required to give such an undertaking.
6: Nothing in this Act or the regulations prevents the Authority from seeking an interim injunction under this section at any time. SR 2003/374 r 68 Section 51(1)(a) amended 30 March 2025 section 60(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 51(1)(b) amended 30 March 2025 section 60(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 51(3)(a) amended 30 March 2025 section 60(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 51(3)(b) amended 30 March 2025 section 60(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 51(4) amended 30 March 2025 section 60(3) Regulatory Systems (Economic Development) Amendment Act 2025
52: Limitation periods for breaches of Code
1: The Authority may not exercise its powers in relation to a breach or possible breach of the Code if the breach—
a: was discovered, or ought reasonably to have been discovered, more than 3 years before the exercise of the power; or
b: occurred more than 10 years before the exercise of the power.
2: However, once the Authority has exercised a power in relation to the breach or possible breach, the limitations in subsection (1) do not apply. SR 2003/374 r 5(2)
53: Powers and procedures of Rulings Panel
1: Every complaint, appeal, or dispute before the Rulings Panel must be dealt with by a panel of 3 members, one of whom must be the chairperson (except when the deputy chairperson acts on his or her behalf).
2: The Rulings Panel may determine its own procedures, subject to this Act and the regulations, the requirements of natural justice, and, in relation to particular kinds of appeals and disputes, the Code.
3: The Rulings Panel has all the powers necessary to perform its functions in accordance with this Act, the regulations, and the Code. SR 2003/374 rr 96 171A 177
54: Remedial orders for breach of Code
1: On determining a complaint that an industry participant or a specified person
a: issue a private warning or reprimand to an industry participant or a specified person
b: make an order that a public warning or reprimand be issued to an industry participant or a specified person
c: impose additional or more stringent record-keeping or reporting requirements under or in connection with the Code:
d: make a pecuniary penalty order requiring an industry participant or a specified person see section 56
e: make a compensation order requiring an industry participant or a specified person
f: make a compliance order requiring an industry participant or a specified person see section 57
g: make orders regarding the reasonable costs of any investigations or proceedings:
h: recommend to the Authority that a change should be made to the Code or the regulations:
i: recommend to the Minister that a change should be made to the regulations or the Act.
2: The Rulings Panel must take into account its own previous decisions in respect of any similar situations previously dealt with by the Authority or any predecessor of the Authority.
3: Two or more breaches relating to one event or series of closely related events arising from the same cause or circumstance must be treated as a single breach.
4: The Rulings Panel may also decide to make orders regarding the reasonable costs of any investigations or proceedings on determining that an industry participant or a specified person 1992 No 122 s 172KE Section 54(1) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(1)(a) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(1)(b) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(1)(d) replaced 1 September 2022 section 24(1) Electricity Industry Amendment Act 2022 Section 54(1)(d) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(1)(e) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(1)(f) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025 Section 54(3) inserted 1 September 2022 section 24(2) Electricity Industry Amendment Act 2022 Section 54(4) inserted 1 September 2022 section 24(2) Electricity Industry Amendment Act 2022 Section 54(4) amended 30 March 2025 section 61 Regulatory Systems (Economic Development) Amendment Act 2025
55: Restrictions on remedies
1: The remedies that the Rulings Panel may impose under section 54
2: No one may bring an action for breach of statutory duty that arises out of, or relates to, a breach of the Code.
3: No industry participant may bring an action in tort against a market operation service provider that arises out of, or relates to, any act, matter, or thing done, or required or omitted to be done, by the market operation service provider in the course of it providing market operation services, provided that the act or omission is not a fraudulent act or omission by the market operation service provider.
4: Except as provided in subsection (3), nothing in this section limits the recovery of—
a: a debt owing under any order of the Rulings Panel made under this Act; or
b: damages in tort other than breach of statutory duty; or
c: damages for breach of contract, or for any other wrong, that arises from an act or omission that is also a breach of the Code. 1992 No 122 ss 172KF 172KG
56: Pecuniary penalty orders
1: The Rulings Panel may make a pecuniary penalty order under section 54(1)(d)
2: In determining whether to make a pecuniary penalty order and, if so, the amount of the order, the Rulings Panel must consider the seriousness of the breach of the Code, having regard to the following:
a: the severity of the breach:
b: the impact of the breach on other industry participants:
c: the extent to which the breach was inadvertent, negligent, deliberate, or otherwise:
d: the circumstances in which the breach occurred:
e: any previous breach of the Code by the industry participant or specified person
f: whether the industry participant or specified person
g: the length of time the breach remained unresolved:
h: the participant’s or specified person’s
i: any benefit that the participant or specified person
ia: the impact of the penalty on the participant or specified person
j: any other matters that the Rulings Panel thinks fit. SR 2003/374 r 109 Section 56(2)(e) amended 30 March 2025 section 62(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 56(2)(f) amended 30 March 2025 section 62(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 56(2)(h) amended 30 March 2025 section 62(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 56(2)(i) amended 30 March 2025 section 62(3) Regulatory Systems (Economic Development) Amendment Act 2025 Section 56(2)(ia) inserted 1 September 2022 section 25 Electricity Industry Amendment Act 2022 Section 56(2)(ia) amended 30 March 2025 section 62(3) Regulatory Systems (Economic Development) Amendment Act 2025
57: Offence to breach certain orders of Rulings Panel
An industry participant or specified person section 54(1)(f) section 54(1)(c) SR 2003/374 r 108 Section 57 amended 30 March 2025 section 63 Regulatory Systems (Economic Development) Amendment Act 2025 Section 57 amended 1 July 2013 section 413 Criminal Procedure Act 2011
58: Suspension and termination for breach of certain Rulings Panel orders
The Rulings Panel may make a suspension order or a termination order against an industry participant if—
a: the industry participant has failed to comply with an order of the Rulings Panel, and the failure has seriously prejudiced the operational or financial security of the wholesale market or transmission system for electricity; or
b: the Authority has suspended trading in a generator or purchaser under section 49 SR 2003/374 r 138
59: Effect of suspension and termination orders
1: A suspension order suspends all or specified rights under the Code of the industry participant against whom it is made, subject to any conditions set out in the order, and for the period specified in the order.
2: A termination order terminates all or specified rights under the Code of the industry participant against whom it is made.
3: A termination order does not affect any liability for payment of money under the Code before the date of the relevant order. SR 2003/374 rr 138(1) 146(2), (3)
60: Offences relating to suspension and termination orders
An industry participant commits an offence, and is liable on
a: a suspension order or a termination order; or
b: any direction or arrangement made by the Rulings Panel under the regulations in relation to a suspension order or a termination order. SR 2003/374 r 139 Section 60 amended 1 July 2013 section 413 Criminal Procedure Act 2011
61: Powers in relation to appeals and disputes
In determining an appeal, or resolving a dispute, of a kind identified in the regulations or the Code, the Rulings Panel may make any determination, order, or direction that it thinks fit, subject to—
a: any general provisions of the regulations relating to appeals and disputes; or
b: if there are specific provisions in the regulations or the Code relating to that kind of appeal or dispute, those provisions.
62: Orders generally
Every order of the Rulings Panel under section 54 or 58—
a: must be in writing; and
b: is subject to this subpart and any regulations that limit or restrict the amount of liability under an order or cumulative orders; and
c: may be amended or revoked at any time by the Rulings Panel. Appeals
63: Appeal on ground of lack of jurisdiction
An industry participant or a specified person 1992 No 122 s 172KH Section 63 amended 30 March 2025 section 64 Regulatory Systems (Economic Development) Amendment Act 2025
64: Appeal on question of law
There is a right of appeal to the High Court, on a question of law only, against any decision of the Authority or the Rulings Panel. 1992 No 122 s 172KJ
65: Appeal against certain orders of Rulings Panel
1: The Authority, an industry participant, or a specified person
a: an order requiring a public warning or reprimand to be issued ( section 54(1)(b)
b: a pecuniary penalty order, or the amount payable under a pecuniary penalty order ( section 54(1)(d)
c: a compensation order, or the amount payable under a compensation order ( section 54(1)(e)
d: a compliance order ( section 54(1)(f)
e: a costs order ( section 54(1)(g) or (4)
f: an order by the Rulings Panel, in relation to a particular kind of appeal or dispute, that is identified in the regulations or the Code as an order that may be appealed to the High Court under this section.
2: An industry participant may appeal to the High Court against a suspension order or termination order made by the Rulings Panel.
3: An industry participant or a specified person may exercise a right of appeal under this section only if the participant or specified person is—
a: an industry participant or a specified person in whose favour or against whom the order of the Rulings Panel is made; or
b: an industry participant or a specified person who joined or was joined as a party to the proceeding that is the subject of the appeal. 1992 No 122 ss 172KK 172KL Section 65(1) amended 30 March 2025 section 65(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 65(1)(e) amended 1 September 2022 section 26 Electricity Industry Amendment Act 2022 Section 65(3) replaced 30 March 2025 section 65(2) Regulatory Systems (Economic Development) Amendment Act 2025
66: How and when appeals made
An appeal under this Part must be made by giving notice of appeal within 20 working days after the date of the decision or order appealed against or within any further time that the High Court allows. 1992 No 122 s 172KJ(2)
67: Determination of appeals
In determining an appeal under section 65
a: confirm, modify, or reverse the order, or any part of it:
b: exercise any of the powers that could have been exercised by the Rulings Panel in relation to the matter to which the appeal relates. 1986 No 5 s 93 1992 No 122 s 172KM
68: High Court may refer appeals back for reconsideration
1: The High Court may, instead of determining an appeal, direct the Rulings Panel to reconsider, either generally or in respect of any specified matters, the whole or any specified part of the matter to which the appeal relates.
2: In giving any direction under this section, the court must—
a: advise the Rulings Panel of its reasons for doing so; and
b: give to the Rulings Panel any directions that it thinks just concerning the reconsideration or otherwise of the whole or any part of the matter that is referred back.
3: In reconsidering the matter, the Rulings Panel must have regard to the court's reasons for giving the direction, and the court's directions. 1986 No 5 s 94 1992 No 122 s 172KN
69: Provisions pending determination of appeal
If an appeal is brought against any decision or order of the Rulings Panel, the decision or order remains in full force pending the determination of the appeal, unless the High Court orders to the contrary. 1986 No 5 s 95 1992 No 122 s 172KO
70: High Court may order proceedings be heard in private
1: The High Court may, in its discretion, order that the hearing or any part of the hearing of any appeal under this Part be held in private.
2: The High Court may make an order prohibiting the publication of any report or description of a proceeding or any part of a proceeding (whether heard in public or in private), but no order may prohibit the publication of any determination of the court. 1986 No 5 s 96 1992 No 122 s 172KP
71: Appeal to Court of Appeal in certain cases
1: Any party to an appeal before the High Court under this Part who is dissatisfied with a decision or order of the High Court, may, with the leave of the High Court or of the Court of Appeal, appeal to the Court of Appeal.
2: Section 56
3: In determining whether to grant leave to appeal under this section, the court to which the application for leave is made must have regard to the following matters:
a: whether any question of law or general principle is involved:
b: the importance of the issues to the parties:
c: the amount of money in issue:
d: any other matters that in the particular circumstances the court thinks fit.
4: The court granting leave may, in its discretion, impose any conditions that it thinks fit, whether as to costs or otherwise. 1986 No 5 s 97 1992 No 122 s 172KQ Section 71(2) amended 1 March 2017 section 183(b) Senior Courts Act 2016
3: Separation of distribution from certain generation
Part 3 heading amended 1 September 2022 section 27 Electricity Industry Amendment Act 2022
1: Separation of distribution from certain generation
Subpart 1 replaced 1 September 2022 section 28 Electricity Industry Amendment Act 2022 Purpose and outline of Part Heading repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
72: Purpose of this Part
The purpose of this Part is to prohibit a person who is involved in a distributor from being involved in a generator where that may create incentives and opportunities to inhibit competition in the electricity industry. Section 72 replaced 1 September 2022 section 28 Electricity Industry Amendment Act 2022 Interpretation of Part Heading repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
73: Ownership separation
1: A person who is involved in a distributor must not be involved in 1 or more generators that have a total capacity of more than 250 MW that is generated by 1 or more generating plants that are directly connected to the national grid.
2: To avoid doubt, generation connected to a distribution network is not directly connected to the national grid.
3: In this section,— nameplate total capacity 2010 No 116 s 75 Section 73 replaced 1 September 2022 section 28 Electricity Industry Amendment Act 2022
74: Meaning of involved in
Section 74 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022 Ownership separation Heading repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
75: Ownership separation
Section 75 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022 Corporate separation and arm's-length rules Heading repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
76: Corporate separation and arm's-length rules applying to distributors and connected generators and connected retailers
Section 76 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022 Other rules Heading repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
77: Use-of-systems agreements
Section 77 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
78: Person involved in distributor must not pay for transfer of retail customers to connected retailers
Section 78 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
79: No discrimination when paying rebates or dividends
Section 79 repealed 1 September 2022 section 28 Electricity Industry Amendment Act 2022
2: Enforcement and general provisions
Enforcement and penalties for this Part
80: Pecuniary penalties
1: If the High Court is satisfied on the application of the Authority that a person has breached a provision of this Part, the court may order the person to pay to the Crown a pecuniary penalty that the court determines to be appropriate.
2: The amount of any pecuniary penalty must not, in the case of an individual, exceed $500,000 in respect of each act or omission.
3: The amount of any pecuniary penalty must not, in the case of a body corporate, exceed, in respect of each act or omission, the greater of—
a: $10 million; or
b: either,—
i: if it can be readily ascertained and if the court is satisfied that the contravention occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the contravention; or
ii: if the commercial gain cannot be readily ascertained, 10% of the turnover of the body corporate and all of its interconnected bodies corporate (within the meaning of the Commerce Act 1986
4: In any proceedings under this section for a pecuniary penalty, the standard of proof is the standard of proof applying in civil proceedings.
5: In determining whether to make a pecuniary penalty order and, if so, the amount of the order, the court must have regard to all relevant matters, including—
a: the nature and extent of the act or omission:
b: the nature and extent of any loss or damage suffered by any person as a result of the act or omission:
c: the circumstances in which the act or omission took place:
d: whether the person has previously been found by the court in proceedings under this Part (or any predecessor to this Part) to have engaged in any similar conduct. 1986 No 5 s 80 1998 No 88 s 51 Section 80(3)(b)(ii) amended 1 September 2022 section 29 Electricity Industry Amendment Act 2022
81: Injunctions
1: Where it appears to the High Court, on the application of the Authority or any other person, that a person intends to engage, or is engaging, or has engaged, in conduct that constitutes or would constitute a breach of a provision of this Part, the court, by order, may do all or any of the following things:
a: grant an injunction restraining any person from engaging in conduct that constitutes or would constitute such a breach:
b: impose on any person obligations to be observed in the carrying on of any business or the safeguarding of any business or any assets of any business:
c: provide for the carrying on of any business or the safeguarding of any business or assets of any business, either by the appointment of a person to conduct or supervise the conduct of any business (on such terms and with such powers as may be specified or described in the order), or in any other manner, as the court thinks necessary in the circumstances of the case.
2: In any proceedings under this section, the Authority, upon the order of the court, may obtain discovery and administer interrogatories. 1986 No 5 s 84 1998 No 88 s 52
82: Actions for damages
Every person is liable in damages for any loss or damage caused by that person engaging in conduct that constitutes a breach of a provision of this Part. 1986 No 5 s 82 1998 No 88 s 53
83: Other powers to give directions, reopen agreements
1: If the High Court is satisfied, on the application of the Authority or any other person, that a person has breached a provision of this Part, the court may give directions ordering a person in breach to renegotiate any agreement that contravenes, or gives rise to a breach of, a provision of this Part, on such terms as the court specifies.
2: If directions under subsection (1) are not complied with to the satisfaction of the court, the court may—
a: reopen any agreement that breaches, or gives rise to a breach of, a provision of this Part and make any orders it deems just and equitable for the purpose of reopening the transaction and setting aside the breach, and, if appropriate, reinstating the parties as nearly as may be in their former positions:
b: give directions concerning the business or property of the person, or the management or administration of that person's business or property (including a direction that a person cease to be a manager of the business), and every person is bound by the directions. 1998 No 88 s 56
84: Miscellaneous provisions relating to civil proceedings under this Part
1: In any civil proceedings under this Part, the Authority, upon the order of the High Court, may obtain discovery and administer interrogatories.
2: Civil proceedings under this Part may not be commenced more than 3 years after the matter giving rise to the breach arose.
3: Where conduct by any person constitutes a breach of 2 or more provisions of this Part, civil proceedings may be instituted under this Part against that person in relation to the breach of any 1 or more of the provisions; but no person is liable to more than 1 pecuniary penalty under this Part in respect of the same conduct.
4: Criminal proceedings under this Part may be started against a person whether or not proceedings for an order under section 80
5: Uncompleted proceedings for an order under section 80 1986 No 5 s 80(2)–(6) 1996 No 30 s 124F 1998 No 88 s 57
85: Application of Commerce Act 1986 provisions
The following provisions of the Commerce Act 1986
a: sections 77 78
b: section 79
c: section 88A
d: section 89
e: section 90
f: Part 7 sections 98H 99AA to 99P 104 105 106 108 110 111 1998 No 88 s 58 Section 85(f) amended 1 September 2022 section 30 Electricity Industry Amendment Act 2022
86: Additional proceedings
Proceedings brought under this Part are in addition to any proceedings brought under any other Act. 1998 No 88 s 59 Territorial application of this Part
87: Application to persons outside New Zealand
This Part extends to persons outside New Zealand who are involved in a distributor or generator 1986 No 5 s 4(3) 1998 No 88 s 15 Section 87 amended 1 September 2022 section 31 Electricity Industry Amendment Act 2022 Disclosure and reporting to Authority Heading repealed 1 September 2022 section 32 Electricity Industry Amendment Act 2022
88: Disclosure of information to Authority
Section 88 repealed 1 September 2022 section 32 Electricity Industry Amendment Act 2022
89: Directors must report compliance with arm’s-length rules
Section 89 repealed 1 September 2022 section 32 Electricity Industry Amendment Act 2022 Exemptions
90: Exemptions
1: The Authority may, by notice in the Gazette
a: any business or involvement from the application of this Part; or
b: any person from compliance with any provisions of this Part.
2: The Authority may grant an exemption only if it is satisfied that—
a: the exemption will either promote, or not inhibit, competition in the electricity industry; and
b: the exemption will not permit an involvement in a distributor and a generator
3: The exemption takes effect from the date specified in the exemption (which may not be earlier than the date of the Gazette
4: The Authority may grant an exemption on any terms and conditions that it reasonably considers are necessary to give effect to the purpose of this Part.
5: The Authority may in like manner vary or revoke any such exemption.
6: The Authority must make publicly available a list of all current exemptions under this section.
7: 1998 No 88 s 81 Section 90(2)(b) amended 1 September 2022 section 33 Electricity Industry Amendment Act 2022 Section 90(7) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Application of other Acts
91: Application of Commerce Act 1986
Nothing Commerce Act 1986 1998 No 88 s 82 Section 91 amended 1 September 2022 section 34 Electricity Industry Amendment Act 2022
92: Not interconnected under Commerce Act 1986
Section 92 repealed 1 September 2022 section 35 Electricity Industry Amendment Act 2022
93: Illegal
contracts
1: An agreement lawfully entered into does not become illegal or unenforceable by any party by reason of the fact that its performance is in breach of a provision of this Part.
2: An agreement entered into in breach of a provision of this Part is voidable at the option of any party to the agreement who is not in breach of a provision of this Part by notice in writing to the other party to the agreement at any time within 1 month after the innocent party has notice that the agreement is in breach of a provision of this Part. 1998 No 88 s 86 Section 93 heading amended 1 September 2017 section 347 Contract and Commercial Law Act 2017
94: Substance matters, not form
Any question under this Part or Schedule 2 1988 No 234 s 5(4), (5), (6) 1998 No 88 s 14 Section 94 amended 1 September 2022 section 36 Electricity Industry Amendment Act 2022
4: Industry participants and consumers
1: Dispute resolution
95: Complaints about Transpower, distributors, and retailers
1: Any person described in subsection (2) may make a complaint to the dispute resolution scheme concerning Transpower (except in its capacity as system operator) or any distributor or retailer.
2: The persons who may make a complaint are any persons (including consumers, potential consumers, and owners and occupiers of land) except members of the dispute resolution scheme.
3: The dispute resolution scheme
a: the approved scheme identified in clause 3
b: the regulated scheme provided for in regulations made under clause 18
4: The procedures for making complaints to the dispute resolution scheme are as set out in the rules of the dispute resolution scheme. 1992 No 122 s 158G
95A: Indemnity disputes
The dispute resolution scheme may resolve disputes between members of the dispute resolution scheme concerning the application of the indemnity in section 46A indemnity dispute Section 95A inserted 17 June 2014 section 16 Consumer Guarantees Amendment Act 2013
96: Membership of dispute resolution scheme
1: Transpower (other than in its capacity as system operator), and every distributor and retailer, must be a member of the dispute resolution scheme, unless exempt under subsection (3).
2: A person commits an offence and is liable on
3: A person need not be a member of a dispute resolution scheme if—
a: the person is a member of a class of industry participants identified in regulations made under section 111
b: the Minister of Consumer Affairs exempts the person by issuing an individual exemption notice in the Gazette
i: identifies the person that is exempt from the obligation to be a member; and
ii: gives reasons for the exemption.
4: The Minister of Consumer Affairs may grant an individual exemption to a person only if he or she is satisfied that membership of the dispute resolution scheme by the person is not necessary in order to meet the purpose of the dispute resolution scheme because complaints are unlikely to be made against the person or because complaints should be made in another forum , and the person is unlikely to be involved in indemnity disputes
5: The Minister of Consumer Affairs may amend or revoke an individual exemption, by issuing a notice in the Gazette
a: has given notice of the proposed amendment or revocation to the exempt person (where possible) and given the person a reasonable opportunity to comment on the proposal; and
b: is satisfied that the amendment or revocation is necessary or desirable in order to meet the purpose of the dispute resolution scheme.
6:
7: The Ministry must publicise a list of all current class and individual exemptions. Section 96(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 96(4) amended 17 June 2014 section 16 Consumer Guarantees Amendment Act 2013 Section 96(6) repealed 1 September 2022 section 37 Electricity Industry Amendment Act 2022
97: Compliance with rules and binding settlements
1: Members of the dispute resolution scheme must comply with the rules of the scheme.
2: On the application of the person responsible for the dispute resolution scheme, the District Court any
a: comply with the rules of the scheme:
b: comply with a binding settlement determined by the scheme in response to a complaint:
c: comply with a binding settlement determined by the scheme in an indemnity dispute.
3: If the District Court
4: If an order requiring a member to comply with a binding settlement includes a requirement that the member pay an amount of money to a person, that order (or part of the order) may be enforced as if it were a judgment by the District Court
5: A reference in this section to a member includes a reference to a person who was a member of the dispute resolution scheme at the relevant time but is no longer a member at the time of the application or order. Section 97(2) amended 1 March 2017 section 261 District Court Act 2016 Section 97(2) amended 17 June 2014 section 16 Consumer Guarantees Amendment Act 2013 Section 97(2)(c) inserted 17 June 2014 section 16 Consumer Guarantees Amendment Act 2013 Section 97(3) amended 1 March 2017 section 261 District Court Act 2016 Section 97(4) amended 1 March 2017 section 261 District Court Act 2016
98: Offence to fail to comply with District Court order
1: A member or former member of the dispute resolution scheme who, knowing that the member or former member is subject to an order made under section 97
2: Nothing in this section applies to an order or part of an order of the District Court section 97(4) Section 98(1) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 98(2) amended 1 March 2017 section 261 District Court Act 2016
2: Financial statements of customer and community trusts
99: Customer and community trusts must prepare and submit for audit financial statements
The trustees of a customer trust and the trustees of a community 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 8
b: submit those financial statements to an auditor for audit. 1992 No 122 s 158A Section 99(a) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013
100: Publication of audited financial statements
1: The trustees of a customer trust and the trustees of a community trust must make publicly available the financial statements referred to in section 99
2: The trustees must also notify the fact that copies of the documents referred to in subsection (1) 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). 1992 No 122 s 158B
101: Auditor of trusts
1: The trustees of a community trust and the trustees of 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 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 the auditor is appointed at the annual meeting:
b: by the trustees, if the auditor is appointed by the trustees.
4: An auditor of a customer trust or community trust—
a: must be a qualified auditor (within the meaning of section 35
b: must not be a trustee, a director, an employee, or an agent of the trust or of any distributor owned by the trust, or be otherwise disqualified from being an auditor under section 36(4)(b) and (d)
5: See sections 37 to 39
6: In addition, sections 207B 207T to 207W
7: Those sections of the Companies Act 1993 1992 No 122 s 158C Section 101(4) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 101(5) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 101(6) replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 101(7) inserted 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013
102: 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: Beneficiaries may attend and vote at an annual meeting in person or, subject to the approval of the trustees, by audio link, audiovisual link, or other remote access facility. 1992 No 122 s 158D Section 102(5) inserted 1 September 2022 section 38 Electricity Industry Amendment Act 2022
103: Auditor-General to be auditor if no other auditor appointed
1: If no auditor is appointed in accordance with section 101(1)
2: The trustees of a customer trust or community trust must, within 5 working days after subsection (1) becoming applicable, give written notice to the Auditor-General of this fact.
3: If the Auditor-General becomes the auditor of a trust, the sections and Parts of the Public Audit Act 2001 section 19 1992 No 122 s 158E
104: Offences, enforcement, and application of sections 99 to 103
1: The trustees of a customer trust and the trustees of a community trust must comply with sections 99 to 103 section 46A
2: Every trustee commits an offence and is liable on sections 99 to 103
3: Except as provided in subsection (1), nothing in sections 99 to 103
4: For the purpose of enforcing sections 99 to 103 section 114 Part 2 1992 No 122 s 158F Section 104(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
3: Continuance of supply
105: Continuance of distributors' supply obligation
1: This section applies to a distributor who, in relation to any place,—
a: is, immediately before the repeal by this Act of section 62
b: is the successor in business to a distributor referred to in paragraph (a).
2: A distributor to whom this section applies must, in relation to the place referred to in subsection (1), either—
a: supply line function services to the place so that the place is within the distributor's network; or
b: supply the place with electricity from an alternative source.
3: The obligation in subsection (2) is subject to anything to the contrary in the Electricity Act 1992 section 169
4: A distributor who is obliged under subsection (2) to supply line function services or electricity from an alternative source to a place commits an offence, and is liable on
a: having been made aware that supply to the place has ceased in the circumstances described in section 106(2)(a)
b: knowingly ceases to supply line function services or electricity (as the case may be) to the place, other than in the circumstances described in section 106(2)(b) or (c)
5: In this section and sections 106 to 108 landowner supplying electricity from an alternative source 1992 No 122 s 62 Section 105(4) amended 1 July 2013 section 413 Criminal Procedure Act 2011
106: Cessation and suspension of supply obligation
1: A distributor's obligation under section 105(2)
a: the landowner and (if the landowner is not the consumer) the consumer, or the Minister, agree in writing to the obligation coming to an end; or
b: the obligation is assigned to, or assumed by, a successor in business to the distributor.
2: The obligation in section 105(2)
a: the supply of line function services or electricity from an alternative source has ceased as a result of circumstances beyond the control of the distributor (such as fire, earthquake, or inevitable accident):
b: the supply of line function services or electricity from an alternative source needs to cease for reasons of safety or in order to carry out maintenance or upgrading work:
c: the distributor, or a retailer, is entitled to cease supply (whether of line function services or electricity) because of a failure to pay money due on account to the distributor or retailer in respect of the place.
3: If the supply of line function services or electricity from an alternative source ceases in any of the circumstances described in subsection (2), the cessation may continue only for as long as the reason for cessation continues.
107: Proposal to supply electricity from alternative source
1: A distributor to whom section 105
a: every consumer affected by the proposal; and
b: if the landowner is not the consumer, the landowner; and
c: every retailer who supplies electricity to the place; and
d: the public in the district in which the place is situated.
2: The notice to each affected consumer and any landowner must—
a: outline the proposal; and
b: describe how, under the proposal, the consumer's reasonable electricity needs will be met; and
c: give the consumer and any landowner a reasonable period in which to comment on the proposal.
3: If the distributor is unable to locate a landowner of a place after taking reasonable steps to do so, the distributor is not required to give notice to the landowner under subsection (1).
4: The notice to the public must be by way of a notice—
a: published in a newspaper that is published at least weekly and that circulates in the district to which the proposal relates; and
b: that outlines the proposal and specifies the time within which any person may comment on it.
5: The distributor must have regard to any comments received in response to the proposal.
108: Application of other enactments
1: Any obligations under the following that apply to retailers apply to a distributor in connection with any supply by the distributor of electricity from an alternative source, if that supply is in fulfilment of the supply obligation in section 105(2)
a: obligations under this Act, the regulations, and the Code:
b: obligations under the Electricity Act 1992
2: However, regulations made under section 113
3: If a distributor, during a trial or transition in the course of complying with section 105(2) Part 3 or the Code
4: For the purposes of subpart 9 section 106(1)(a) section 54C Section 108(3) amended 1 September 2022 section 39 Electricity Industry Amendment Act 2022
5: Miscellaneous
1: Regulations
109: Regulations identifying industry participants and market operation service provider roles
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, given after consulting the Authority, make regulations for the following purposes:
a: identifying which industry service providers, in addition to those listed in section 7(2)
ab: identifying which other persons whose activities or roles in the electricity industry are material to the Authority’s objectives under section 15
b: identifying market operation service provider roles that are additional to those listed in the definition of market operation service provider in section 5
1A: The Minister may make a recommendation for the purpose of subsection (1)(ab) only if the Minister is satisfied—
a: that affected persons have been given notice of the proposed recommendation and a reasonable opportunity to comment on the recommendation; and
b: that it is necessary or desirable, for the purpose of achieving the Authority’s objectives under section 15
c: that the advantages and disadvantages of the proposed recommendation have been considered.
1B: Regulations under subsection (1)(ab) may identify whether the persons are industry participants for the purposes only of some of this Act, the regulations, or the Code, but if not, the persons are industry participants for all purposes.
2: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 109(1)(ab) inserted 1 September 2022 section 40(1) Electricity Industry Amendment Act 2022 Section 109(1A) inserted 1 September 2022 section 40(2) Electricity Industry Amendment Act 2022 Section 109(1B) inserted 1 September 2022 section 40(2) Electricity Industry Amendment Act 2022 Section 109(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
110: Class exemptions relating to registration and Code compliance
1: The Governor-General may, by Order in Council made on the recommendation of the Minister responsible for Part 2
a: identify a class of industry participants that is exempt from the obligation in section 9(1)(a)
b: identify a class of industry participants that is exempt from the obligation in section 9(1)(b)
2: Regulations made under subsection (1)(b) may exempt a class of industry participants from all or specified provisions of the Code.
3: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 110(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
111: Class exemptions relating to membership of dispute resolution scheme
1: The Governor-General may, by Order in Council made on the recommendation of the Minister of Consumer Affairs section 96(1)
2: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 111(1) amended 12 December 2012 section 4 Electricity Industry Amendment Act 2012 Section 111(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
112: Regulations relating to monitoring, investigating, and enforcing Code
1: The Governor-General may, by Order in Council made on the recommendation of the Minister responsible for Part 2
a: requiring industry participants or specified persons
b: prescribing the practices and procedures of the Authority in relation to monitoring compliance with the Code:
c: prescribing the practices and procedures of the Authority and the Rulings Panel in relation to the investigation of breaches and possible breaches of the Code (including the appointment and powers of investigators) and other enforcement measures:
d: prescribing the information that the Authority must or may require from industry participants generally, or classes of industry participants, and regulating what it must or may do with such information:
da: prescribing the information that the Authority must or may require from specified persons, and regulating what it must or may do with such information:
e: regulating the membership and operation of the Rulings Panel:
f: identifying the kinds of appeals and disputes that may be determined by the Rulings Panel:
g: prescribing, both generally and in relation to specific kinds of appeal or dispute, practices and procedures of the Rulings Panel for dealing with appeals and disputes, whether those appeals and disputes are identified in the regulations or the Code:
h: prescribing determinations, orders, or directions, or imposing limits on any determinations, orders, or directions, that the Rulings Panel may make in relation to specific kinds of appeals and disputes (whether those appeals and disputes are identified in the regulations or the Code), and providing for any associated rights of appeal:
i: restricting or limiting the amount of liability of, or the amount of any penalty that may be imposed upon, an industry participant or class of industry participant:
ia: restricting or limiting the amount of liability of, or the amount of any penalty that may be imposed upon, a specified person:
j: identifying regulations the breach of which are to be treated as a breach of the Code:
k: providing for offences, punishable on
2: The requirement in subsection (1) to consult with the Authority does not apply to the first regulations made under this section if—
a: the regulations largely correspond to Parts 4 to 8
b: the Minister or the Electricity Commission has consulted with interested parties on any material changes.
3: Regulations under this section are secondary legislation ( see Part 3 1992 No 122 ss 172D 172K(a) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 112(1)(a) amended 30 March 2025 section 66(1) Regulatory Systems (Economic Development) Amendment Act 2025 Section 112(1)(da) inserted 30 March 2025 section 66(2) Regulatory Systems (Economic Development) Amendment Act 2025 Section 112(1)(ia) inserted 30 March 2025 section 66(3) Regulatory Systems (Economic Development) Amendment Act 2025 Section 112(1)(k) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 112(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
113: Regulations about tariffs and other consumer issues
1: The Governor-General may, by Order in Council made on the recommendation of the Minister given after the consultation referred to in subsection (4), make regulations for the purpose of—
a: regulating the type of tariffs for fixed and other charges that must or may be offered to domestic consumers; and
b: promoting the fair treatment by distributors and retailers of domestic consumers and small business consumers
c: enabling the protection of rural consumers, and consumers supplied with electricity from an alternative source under section 105
2: Regulations made under subsection (1) may, without limitation, do any of the following:
a: require low fixed charge tariff options to be made available to consumers who use less than a prescribed amount of electricity, and impose requirements (including amounts, or ways of calculating amounts) on industry participants in order to ensure that those tariffs result in a benefit to domestic consumers who opt for them:
b: provide for regional variations in the application of the regulations relating to low fixed charge tariff options:
c: require distributors or retailers, or both, to provide information relating to the types of tariffs offered to consumers, including to low fixed charge tariffs:
d: regulate distributors’ and retailers’ dealings with domestic consumers and small business consumers
e: regulate the rate of change in the prices charged by distributors to rural consumers on a network as compared with the rate of change in the prices charged to comparable non-rural consumers on the same network:
f: regulate the rate of change in the prices charged to consumers supplied with electricity from an alternative source under section 105
g: provide for offences, punishable on
3: Regulations made under this section may include any other provisions necessary or desirable for monitoring and enforcing compliance with the regulations.
4: Before recommending an Order in Council under this section, the Minister must—
a: consult with the Minister of Consumer Affairs; and
b: obtain and consider advice from the Authority on the impact of the proposed Order in Council on the promotion of competition in, the reliable supply by, and the efficient operation of, the electricity industry.
5: In this section, rural consumer
6:
7: The Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004
8: Regulations under this section are secondary legislation ( see Part 3 1992 No 122 ss 172B 172D The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 113(1)(b) amended 1 September 2022 section 41(1) Electricity Industry Amendment Act 2022 Section 113(2)(d) amended 1 September 2022 section 41(1) Electricity Industry Amendment Act 2022 Section 113(2)(g) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 113(5) replaced 1 September 2022 section 41(2) Electricity Industry Amendment Act 2022 Section 113(6) repealed 1 September 2022 section 41(3) Electricity Industry Amendment Act 2022 Section 113(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
113A: Regulations about small business consumers
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations specifying a class of consumers that are not domestic consumers as small business consumers.
2: Regulations made under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 113A inserted 1 September 2022 section 42 Electricity Industry Amendment Act 2022
114: Regulations promoting accountability in customer trusts and community trusts
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the purpose of promoting the accountability of customer trusts and community trusts.
2: Regulations made under this section may, without limitation, do any of the following:
a: require trustees to disclose specified information to beneficiaries of the trust:
b: specify procedures concerning requests by beneficiaries for information from trusts and trustees, responses to such requests, and rights to review responses:
c: require trustees to hold meetings for beneficiaries, and regulate the practices and procedures associated with those meetings.
3: Regulations made under this section may include provisions necessary or desirable for monitoring and enforcing compliance with the regulations, including making it an offence, punishable by a fine not exceeding $10,000, to fail to comply with a requirement of the regulations.
4:
5: Regulations under this section are secondary legislation ( see Part 3 1992 No 122 s 172C The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 114(4) repealed 1 September 2022 section 43 Electricity Industry Amendment Act 2022 Section 114(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
115: General regulation-making power
1: The Governor-General may from time to time, by Order in Council, make regulations for all or any of the following purposes:
a: prescribing the matters in respect of which fees or charges are payable under this Act or the regulations, the amounts of those fees or charges, or the method or rates by which they are to be assessed, the persons liable for payment of those fees or charges, and the circumstances in which the payment of the whole or any part of those fees or charges may be refunded or waived:
b: providing for such other matters as are contemplated by, or are necessary for giving full effect to, this Act and for its due administration.
2: Regulations under this section are secondary legislation ( see Part 3 1998 No 88 s 87 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 115(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2: State-owned enterprise asset reconfiguration and miscellaneous matters
State-owned enterprise asset reconfiguration: General provisions
116: Interpretation for subpart
In this subpart, unless the context otherwise requires,— board consent authority Resource Management Act 1991 Genesis Genesis Energy Limited Meridian Mighty River permit Resource Management Act 1991 shareholding Ministers State generator Waitaki Power Scheme 1998 No 88 s 97 Section 116 consent authority amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 116 Genesis amended 21 November 2013 clause 4 State-Owned Enterprises (Genesis Energy Limited) Order 2013 Section 116 permit amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
117: Directions that may be given by shareholding Ministers
1: The purpose of this section is to improve competition in both wholesale and retail electricity markets, and make improvements in security of supply, by adjusting the configuration of assets held by State generators.
2: The shareholding Ministers may, at any time before 1 November 2011, give to the board of all or any of the State generators 1 or more of the following directions:
a: a direction requiring the State generators to enter into 1 or more long-term contracts (of up to 15 years' duration) with each other for financial hedges for electricity for the purpose of this section:
b: a direction requiring the transfer of ownership (such as by way of sale and purchase agreement) from Meridian to Genesis of all assets and any rights and obligations relating to Tekapo A and Tekapo B generating stations:
c: a direction requiring Meridian to purchase from the Crown all assets and any rights and obligations of the Crown relating to the Whirinaki generating station:
d: 1 or more directions requiring the State generators to enter into 1 or more contracts that are necessary or desirable to implement a direction under any of paragraphs (a) to (c) and specifying some or all of the terms and conditions of those contracts. 1998 No 88 s 98(1)
118: Process for giving directions
1: The shareholding Ministers—
a: may at any time advise the relevant board of their intentions or expectations with regard to directions to be given under section 117
b: must advise the relevant board of the matters to be referred to in a direction to be given under section 117
c: must consider any comments that the relevant board makes to them relating to the direction within 10 days after the date on which the board receives the advice under paragraph (b).
2: Every direction given under section 117
3: The Minister for State Owned Enterprises must—
a: present a copy of any direction given under section 117
b: publish a copy of it in the Gazette
4: However, the Minister for State Owned Enterprises may withhold from disclosure under subsection (3) any part of a direction that he or she considers is commercially sensitive, and in that case must substitute a note of explanation for the parts withheld. 1998 No 88 s 98(2), (7)
119: Legal effect of directions
1: The shareholding Ministers may give a direction under section 117 sections 4 to 7 Companies Act 1993
2: The board must comply with a direction given to it under section 117 State-Owned Enterprises Act 1986 Companies Act 1993
3: Neither the Crown nor any shareholding Minister is in breach of, or liable to any person under, sections 4 to 7 Companies Act 1993 section 117 section 118
4: No State generator, and no director, employee, or contractor of, or adviser to, a State generator, is in breach of, or liable to any person under, the State-Owned Enterprises Act 1986 Companies Act 1993
a: to give effect to, or as a consequence of, a direction given under section 117
b: as a result of advice given under section 118
5: In subsections (3) and (4), the references to any other Act do not extend to the Commerce Act 1986 section 130
6: To avoid doubt, subsections (3) and (4) do not give any protection from liability for breach of, or default under, any agreement.
7: No director, employee, or contractor of, or adviser to, a State generator is in breach of, or default under, any agreement, or in breach of confidence, or in the position of having committed any tort (including negligence) or other civil wrong, by reason of any act or omission referred to in subsection (4). 1998 No 88 s 98(3)–(6) Asset reconfiguration provisions in respect of Waitaki Power Scheme
120: Purposes of sections 121 to 126
The purposes of sections 121 to 126
a: to facilitate the transfer to Genesis of the permits in the Waitaki Power Scheme relating to the Tekapo A and Tekapo B generating stations; and
b: to maintain, despite Meridian no longer controlling the entire Waitaki Power Scheme,—
i: the conditions of the permits that relate to environmental effects; and
ii: the rights and obligations as specified in the conditions of the permits; and
iii: the rights and obligations as specified in the existing agreements referred to in section 123
121: Process for Meridian and Genesis to recommend changes to permit conditions in respect of Waitaki Power Scheme
1: Meridian and Genesis must, in consultation with the consent authority, identify, and agree (if possible) any recommended changes to the conditions of the permits that are, in the opinion of Meridian and Genesis, necessary to meet the purposes set out in section 120
2: The Minister, by notice to Meridian and Genesis, may specify a date by which the recommended changes must be provided to the Minister.
3: Meridian and Genesis may provide separate or joint recommendations.
4: Meridian and Genesis must provide the recommended changes to the Minister by the date specified by the Minister.
5: The Minister must, as soon as practicable after receiving any recommended changes, notify the consent authority of the recommended changes, and specify a date by which the consent authority may make representations to the Minister about whether those changes would maintain the effects on the environment that are achieved by the current conditions of the permits.
122: Minister may change permit conditions by order
1: The Minister may, after consultation with the Minister for the Environment, make an order changing 1 or more of the conditions of a permit.
2: The Minister may make an order only if the Minister is satisfied that—
a: the changes to the conditions are needed only because of the transfer of the Tekapo A and Tekapo B generating stations; and
b: it is not reasonably practicable to achieve the purposes set out in section 120
c: changes to the conditions achieve the purpose set out in section 120(b)
d: either or both of Meridian and Genesis have recommended changes to the conditions after consultation with the consent authority; and
e: the Minister has considered any representations made by the consent authority by the date specified under section 121(5)
3: An order under this section—
a:
b: takes effect on a date specified in the order (which may be on or before the date that the permits are transferred to Genesis under the Resource Management Act 1991 Gazette
c: takes effect as if it were a change to a condition that had been made by the consent authority.
d:
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must: LA19 ss 73 74(1)(a) cl 14 •	notify it in the Gazette •	publicise it (see definition in section 5 The consent authority must also publicise it as soon as practicable after it is made Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 122(3)(a) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Section 122(3)(b) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 122(3)(d) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Section 122(4) replaced 28 October 2021 section 3 Secondary Legislation Act 2021
123: Existing agreements with other parties in respect of Waitaki Power Scheme
1: This section and section 124 existing agreements
a: the agreements listed in Schedule 5
b: any other written agreements to which Meridian is a party (other than employment agreements)—
i: that, in the opinion of the Minister, relate directly to the ownership or operation of either or both of Tekapo A and Tekapo B generating stations and that Meridian will no longer be able to perform, or no longer requires, as a result of the transfer of ownership of the generating stations; and
ii: in respect of which the Minister has given notice in the Gazette
2: No existing agreement is terminated only because Meridian no longer controls the entire Waitaki Power Scheme.
3: However, a party to an existing agreement (other than Meridian or Genesis) may, by notice in writing to the Minister, Meridian, and Genesis, terminate the party's involvement in the agreement in accordance with section 124(2)(c) or (9)
124: Reconfiguration of existing agreements
1: The shareholding Ministers may include, in a direction given under section 117(2)(b)
a: a direction requiring Meridian and Genesis to negotiate the retention or transfer, or the sharing or splitting (as the case may be), of the existing agreements in a way that meets the purposes set out in section 120
b: a direction requiring either or both of Meridian and Genesis to offer to any other parties that have rights or obligations under the existing agreements ( third parties section 120
c: dates by which things must be completed, for example,—
i: dates by which replacement contracts must be offered:
ii: dates by which choices must be made under subsection (2) or (9).
2: A third party that has rights or obligations under an existing agreement must choose, by the date specified under subsection (1)(c),—
a: to enter into any replacement contract that is offered; or
b: for the existing agreement to continue in accordance with a direction to be given under subsection (4); or
c: to terminate the existing agreement.
3: If a third party chooses to enter into any replacement contract that is offered, the existing agreement ceases to have effect to the extent that it is replaced by the replacement contract.
4: If a replacement contract has not been entered into by the date specified in a direction under subsection (1)(c), the shareholding Ministers may give to the boards of Meridian and Genesis a further direction specifying—
a: which existing agreements Meridian must remain a party to; and
b: which existing agreements Genesis must become a party to; and
c: which agreements are to be shared between the generators by Genesis becoming a party to the agreements in addition to Meridian; and
d: which agreements are to be split, by Meridian remaining a party in relation to certain provisions and Genesis replacing Meridian as a party in relation to other provisions.
5: If a direction is given under subsection (4)(a) in respect of an existing agreement, Meridian and the third parties to the agreement remain subject to the agreement as if this Act had not been passed.
6: If a direction is given under subsection (4)(b) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the rights and obligations of Genesis on the date specified in the direction.
7: If a direction is given under subsection (4)(c) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the joint and several rights and obligations of Meridian and Genesis on the date specified in the direction.
8: If a direction is given under subsection (4)(d) in respect of an existing agreement, on the date specified in the direction the rights and obligations of Meridian under the agreement remain with Meridian except to the extent that any of those rights and obligations are transferred to Genesis.
9: However, a party to an existing agreement in respect of which a direction is given under subsection (4) (other than Meridian or Genesis) may terminate the party's involvement in the agreement, by notice in writing to the Minister, Meridian, and Genesis given by the further date specified under subsection (1)(c).
10: In this section, rights and obligations
125: Other provisions about directions
1: Sections 118 119 section 124(4) section 118(3)
2: This section and section 124 section 117
126: Interface with
Resource Management Act 1991
1: Sections 88 to 121 127 sections 121 to 125
2: There are no other appeal rights in respect of any matters under sections 121 to 125
3: To avoid doubt, the Waitaki Catchment Water Allocation Regional Plan is not changed by this Act, and its effect on permits that are transferred or changed under this subpart is not affected by the transfer or change. Section 126 heading amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 126(1) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Asset reconfiguration provision in respect of Whirinaki
127: Whirinaki
1: The Minister may terminate the Whirinaki agreement, at any time before its termination date, by notice in writing to the Authority.
2: The Minister must publicise the termination as soon as practicable.
3: Until the Whirinaki agreement terminates, the Whirinaki agreement continues as if—
a: the Authority were the Commission and the reserve energy scheme were continuing; and
b: this Act had not been passed.
4: In this Part, the Whirinaki agreement Levy of industry participants
128: Levies
1: Every industry participant (or prescribed class of industry participant) must pay to the Authority on behalf of the Crown a levy prescribed by regulations.
2: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for the levy.
3: The levy must be prescribed on the basis that the following costs should be met fully out of the levy:
a: the costs of the Authority in performing its functions and exercising its powers and duties under this Act and any other enactment; and
b: the costs that are associated with the Whirinaki agreement referred to in section 127
c: a portion of the costs of the Energy Efficiency and Conservation Authority in performing its functions and exercising its powers and duties under the Energy Efficiency and Conservation Act 2000
d: the costs incurred by the Crown before 1 May 2014 in promoting to customers the benefits of comparing and switching retailers, subject to both of the following limits:
i: a limit of $5 million per financial year; and
ii: an overall limit of $15 million for the period commencing on 1 November 2010 and ending with 30 April 2014; and
da: the costs incurred by the person or persons performing the function of the Small Electricity Consumers Agency, or a portion of those costs, where the size of the portion to be met by levies under this Act is determined by the Minister; and
e: the costs of the Rulings Panel; and
f: the costs of establishing and operating any regulated dispute resolution scheme in respect of the electricity industry under Schedule 4
g: the costs incurred by the Crown in relation to developing and publishing regional electricity supply and demand forecasts and scenarios, and related information and analysis, for the purpose of assisting investment planning by industry participants; and
h: for the first financial year to which the levy applies, the costs incurred by the Crown on or after 1 January 2010 relating to establishing the Authority, disestablishing the Electricity Commission, transferring functions to other agencies, and preparing the initial Code; and
i: the costs of collecting the levy money.
4: The levy may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recovered (along with any financing charge) over any period of up to 5 years.
5: The regulations may—
a: specify the amount of the levy or method of calculating or ascertaining the amount of the levy:
aa: include, in the method of calculating or ascertaining the amount of the levy, provisions related to any shortfall in recovering, or over-recovery of, the actual costs from a previous year:
b: include or provide for including in the levy any shortfall in recovering the actual costs:
c: refund or provide for refunds of any over-recovery of those actual costs:
d: provide for different levies for different classes of industry participants:
e: specify the financial year or part financial year to which a levy applies, and apply that levy to that financial year or part financial year and each subsequent financial year until the levy is revoked or replaced:
f: provide for the payment and collection of levies:
g: 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:
h: 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.
6: The levy for a financial year that starts after the Authority begins to carry out any additional function under this Act or any other Act may cover the costs of performing that additional function, irrespective of the fact that the regulations may be made and come into effect after the start of the financial year.
7: The amount of any unpaid levy is recoverable in any court of competent jurisdiction as a debt due to the Authority on behalf of the Crown.
8: The Authority must pay into a Crown Bank Account, and separately account for, each levy payment.
9: Regulations under this section are secondary legislation ( see Part 3
10: If regulations authorise a person to grant exemptions or waivers referred to in subsection (5)(h),—
a: an instrument granting an exemption or a waiver is secondary legislation ( see Part 3
b: the regulations must contain a statement to that effect. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (9). Legislation Act 2019 requirements for secondary legislation referred to in subsection (9) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (10)(a). Legislation Act 2019 requirements for secondary legislation referred to in subsection (10)(a) Publication See the relevant publication, presentation, and disallowance table in the secondary legislation referred to in subsection (9) LA19 ss 73 74 cl 14 Presentation The Minister must present it to the House of Representatives, unless a transitional exemption applies under Schedule 1 LA19 s 114 cl 32 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 128(3)(c) amended 1 July 2017 section 4(1) Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 Section 128(3)(da) inserted 1 September 2022 section 44 Electricity Industry Amendment Act 2022 Section 128(5)(aa) inserted 1 July 2017 section 4(2) Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 Section 128(9) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 128(10) inserted 28 October 2021 regulation 49 Legislation Act (Amendments to Legislation) Regulations 2021
129: Authority consultation
1: The Authority section 128
a: those industry participants who are liable to pay a levy under that section; and
b: any other representatives of persons whom the Authority believes to be significantly affected by a levy.
2: The Authority
3: The Ministry must consult in a like manner in respect of a levy to recover costs referred to in section 128(3)(g)
4: This section applies to requests in respect of the financial year beginning 1 July 2011 and later financial years. Section 129 heading amended 1 July 2017 section 5(1) Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 Section 129(1) amended 1 July 2017 section 5(2) Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 Section 129(2) amended 1 July 2017 section 5(3) Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017
129A: Energy Efficiency and Conservation Authority consultation about request for appropriation
1: The Energy Efficiency and Conservation Authority must, before submitting a request to the Minister seeking an appropriation of public money for the following year, or any change to an appropriation for the current year, that relates to costs that are intended to be recovered by way of levies under section 128(3)(c)
a: those industry participants who are liable to pay a levy under that section; and
b: any other representatives of persons whom the Energy Efficiency and Conservation Authority believes to be significantly affected by a levy.
2: The Energy Efficiency and Conservation Authority must, at the time when the request is submitted, report to the Minister on the outcome of that consultation.
3: This section applies to requests in respect of the financial year beginning 1 July 2018 and later financial years. Section 129A inserted 1 July 2017 section 6 Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017
129B: Small Electricity Consumers Agency consultation about request for appropriation
1: The Small Electricity Consumers Agency must, before submitting a request to the Minister seeking an appropriation of public money for the following year, or any change to an appropriation for the current year, that relates to costs that are intended to be recovered by way of levies under section 128(3)(da)
a: those industry participants who are liable to pay a levy under that section:
b: any other representatives of persons whom the Small Electricity Consumers Agency believes would be significantly affected by a levy under that section.
2: The Small Electricity Consumers Agency must, when it submits the request, report to the Minister on the outcome of that consultation.
3: This section applies to requests in respect of the financial year beginning 1 July 2021 and later financial years. Section 129B inserted 1 September 2022 section 45 Electricity Industry Amendment Act 2022 Specific authorisations for purposes of Commerce Act 1986
130: Specific authorisations for purposes of Commerce Act 1986
1: The following are specifically authorised for the purpose of section 43
a: anything done or omitted by the Authority, the Rulings Panel, or an industry participant that is reasonably necessary to comply with, enforce, or otherwise administer this Act, the regulations, or the Code; and
b: the giving by the shareholding Ministers of a direction under this subpart; and
c: anything done or omitted by a State generator, or a director or employee of a State generator, if the act or omission is reasonably necessary to—
i: comply with a direction given under this subpart; or
ii: give effect to a contract entered into pursuant to a direction under section 117(2)(d)
d: anything done or omitted to be done by an industry participant for the purpose of developing and operating an active market for trading financial hedge contracts for electricity.
2: Section 47 section 117(2)(b) or (c) 1992 No 122 s 172ZR Distributors' and grid owners' exemption from liability
131: Distributors and grid owners exempt from liability for certain outages
No claim for damages may be made against a distributor or the owner of the national grid in relation to damage caused by, or arising from, an outage that resulted from the distributor or grid owner complying with—
a: the regulations or the Code; or
b: any instruction issued by the Authority or the system operator under the regulations or the Code that the distributor or grid owner was obliged to comply with.
2A: Secondary networks
Subpart 2A inserted 1 July 2017 section 7 Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017
131A: Application of electricity industry legislation to secondary networks
1: This Act, the regulations, and the Electricity Industry Participation Code apply, with all necessary modifications, to a secondary network provider as if that provider were a distributor.
2: In this section,— secondary network
a: is used, designed, or intended for use in, or in connection with, the conveyance of electricity; and
b: is indirectly connected to the national grid secondary network provider
a: is engaged in the conveyance of electricity on a secondary network; and
b: provides services that are substantially similar to the services provided by a distributor. Section 131A inserted 1 July 2017 section 7 Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017
2B: Material incorporated by reference
Subpart 2B inserted 1 September 2022 section 46 Electricity Industry Amendment Act 2022
131B: Material incorporated by reference
1: This section applies for the purposes of section 66(2)(b)
2: If material incorporated by reference in secondary legislation made under this Act is amended or replaced by the originator of the material after the secondary legislation is made, legal effect may be given to that amendment or replacement material if—
a: the amendment or replacement material is of the same general character as the original material; and
b: the maker of the secondary legislation issues a notice to adopt the amendment or replacement material as having legal effect as part of the secondary legislation.
3: If material incorporated by reference in secondary legislation made under this Act expires, is revoked, or otherwise ceases to have effect, the material ceases to have legal effect as part of the secondary legislation if the maker of the secondary legislation issues a notice stating that the material ceases to have that legal effect.
4: A notice issued under subsection (2)(b) or (3) must be published in the Gazette
5: This section does not limit section 66(2)(a)
6: In this section, material section 63 Section 131B inserted 1 September 2022 section 46 Electricity Industry Amendment Act 2022
3: Transitional and consequential provisions
132: Interpretation
In this subpart, unless the context otherwise requires,— commencement date Electricity Commission section 172M property
a: means every type of property; and
b: includes money, and every type of estate and interest in property suitable alternative position
a: for which the employee has the appropriate skills and experience; and
b: the pay and conditions of which are, in their overall effect, no less favourable to the employee than those applying to the employee immediately before the date of the employee’s transfer to that position transferred employee
a: immediately before the commencement date, is employed by the Electricity Commission; and
b: is transferred to the Authority under section 134(1)(f) Dissolution of Electricity Commission
133: Electricity Commission dissolved
1: The Electricity Commission is dissolved.
2: The members of the board of the Electricity Commission cease to hold office at the close of the day before the commencement date.
134: Consequences of dissolution
1: On the commencement date,—
a: the functions and powers of the Electricity Commission under any enactment vest in the Authority, but only to the extent that those functions and powers are consistent with the functions and powers of the Authority under this Act (subject to subsection (5)); and
b: all property belonging to the Electricity Commission vests in the Authority; and
c: all information held by the Electricity Commission is held by the Authority; and
d: all money payable to or by the Electricity Commission becomes payable to or by the Authority; and
e: all rights, liabilities, contracts, entitlements, and engagements of the Electricity Commission become the rights, liabilities, contracts, entitlements, and engagements of the Authority; and
f: subject to section 137
g: anything done, or omitted to be done, or that is to be done, by or in relation to the Electricity Commission is to be treated as having been done, or having been omitted to be done, or to be done, by or in relation to the Authority; and
h: the commencement, continuation, or enforcement of proceedings by or against the Electricity Commission may instead be commenced, continued, or enforced by or against the Authority without amendment to the proceedings; and
i: the completion of a matter or thing that would, but for section 133(1)
2: Despite anything in subsection (1), the Authority may appoint a new chief executive or general manager to commence on or after the commencement date.
3: The transfer of information from the Electricity Commission to the Authority under subsection (1)(c) does not constitute an action that is an interference with the privacy of an individual under section 69
4: The dissolution of the Electricity Commission does not, by itself, affect any of the following matters:
a: any decision made, or anything done or omitted to be done, by the Electricity Commission in relation to the performance of its functions or the exercise of its powers under any enactment:
b: any proceedings commenced by or against the Electricity Commission:
c: any other matter or thing arising out of the Electricity Commission’s performance or exercise, or purported performance or exercise, of its functions or powers under any enactment.
5: Despite subsection (1)(a), it is a function of the Authority to perform any functions and exercise any powers of the Electricity Commission that are necessary or desirable for it to exercise or perform, on a temporary basis,—
a: in order for it to comply with section 127
b: in order to make a reserve supply determination, as referred to in section 136
c: for the purpose of effectively managing the transition of functions from the Electricity Commission to the Authority. 2008 No 47 Schedule 2 cl 26 Section 134(3) amended 1 December 2020 section 217 Privacy Act 2020
135: References in documents to Electricity Commission
On and after the commencement date, every reference in a document (other than an enactment) to the Electricity Commission must be read as a reference to the Authority, if—
a: the document was written or prepared before the commencement date; and
b: such a reading is consistent with this Act. 2008 No 47 Schedule 2 cl 28
136: References to reserve generation capacity in resource consents
1: This section applies to any condition of a resource consent, imposed before this section comes into force, that refers to a determination by the Electricity Commission that—
a: reserve generation capacity is required to, or should, generate electricity; or
b: reserve generation capacity is no longer required.
2: After the date on which the Whirinaki agreement ends, any references to determinations referred to in subsection (1) must be read as references to the Authority making a reserve supply determination, or rescinding a reserve supply determination, as the case requires.
3: The Authority may make or rescind a reserve supply determination only in accordance with criteria that are publicly available.
4: The Authority may delegate to the system operator the power under this section to make and rescind reserve supply determinations, but may not delegate the power to set the criteria published under subsection (3).
5: A condition of a resource consent referred to in subsection (1) may be amended or revoked in the same way as any other condition of the resource consent.
137: Transferred employees
1: The terms and conditions of employment of a transferred employee immediately before the commencement date continue to apply in relation to that employee until—
a: those terms and conditions are varied by agreement between the transferred employee and the Authority; or
b: the transferred employee accepts a subsequent appointment with the Authority.
2: For the purposes of every enactment, law, determination, contract, and agreement relating to the employment of a transferred employee,—
a: the employment agreement of that employee is to be treated as unbroken; and
b: the employee’s period of service with the Electricity Commission, and every other period of service of that employee that is recognised by the Electricity Commission as continuous service, is to be treated as a period of service with the Authority.
3: To avoid doubt, the employment of a transferred employee by the Authority does not constitute new employment for the purposes of the KiwiSaver Act 2006
4: A transferred employee is not entitled to receive any payment or benefit from the Electricity Commission or the Authority on the grounds that the person's position in the Electricity Commission or Authority has ceased to exist, or the person has ceased to be an employee of the Electricity Commission as a result of the transfer to the Authority, if—
a: the employee is transferred to a suitable alternative position with the Authority; or
b: the person is offered a suitable alternative position by the Authority, the Commerce Commission, the Energy Efficiency and Conservation Authority, Transpower, or the Ministry, and—
i: the offer is made in the period between the date on which this Act receives the Royal assent and the earlier of 1 January 2011 and the date on which the person's employment with the Authority ceases; and
ii: the offer is made for employment that commences on or after the commencement date. 2008 No 47 Schedule 2 cl 31
138: Government Superannuation Fund
1: This section applies to every person who, immediately before the commencement date, is an employee of the Electricity Commission.
2: Nothing in this Act affects any entitlement under the Government Superannuation Fund Act 1956
3: This section is for the avoidance of doubt. 2008 No 47 Schedule 2 cl 32
139: Complaints, investigations, etc, transfer to Authority
1: On and from the commencement date, the Authority takes over responsibility for dealing with every matter, such as a complaint about a breach, or possible breach, of the Electricity Governance Rules 2003 see section 142
2: The processes, procedures, and rights of appeal set out in this Act and the regulations apply to—
a: every matter referred to in subsection (1), as if the matter had arisen after the commencement date; and
b: every such matter that is referred to the Authority after the commencement date and that concerns events that occurred before that date.
3: However, the only penalties that may be imposed in relation to a matter that arose, or events that occurred, before the commencement date are the penalties that could have been imposed at the time that the matter arose or events occurred.
140: References to Electricity Governance Rules 2003 and certain regulations
1: Unless the context otherwise requires, a reference in any agreement, contract, or other document to the Electricity Governance Rules 2003 regulations listed in subsection (2)
2: The regulations are as follows:
a: the Electricity Governance Rules made under section 172H
b: subpart 2 of Part 1 Parts 2 2A 3
c: subpart 2
d: the Electricity Governance (Security of Supply) Regulations 2008
e: the Electricity Governance (Connection of Distributed Generation) Regulations 2007 Section 140(1) amended 1 September 2022 section 47(1) Electricity Industry Amendment Act 2022 Section 140(2) inserted 1 September 2022 section 47(2) Electricity Industry Amendment Act 2022 Rulings Panel
141: Members of Rulings Panel
1: Every person who, immediately before the commencement date, is a member of the Rulings Panel is to be treated as if he or she had been appointed as a member under section 24
2: However, despite section 26(3)
3: The chairperson and deputy chairperson of the Rulings Panel are to be treated as if they had been appointed under section 24 section 24(2)(a)
142: Work of Rulings Panel
1: All proceedings, appeals, disputes, or other matters before the Rulings Panel immediately before the commencement date must be dealt with as if this Act had not been enacted and as if the Electricity Governance Regulations 2003
2: All matters that are referred to, or otherwise come before, the Rulings Panel after the commencement date must be dealt with under this Act and the regulations, subject to section 139(3)
3: Nothing in this Act—
a: affects or invalidates any order made by the Rulings Panel before the commencement date; or
b: affects any appeal that is or may be brought against, or relating to, a determination or order of the Rulings Panel. Commerce Commission
143: Investigations relating to separation of distribution from generation and retailing
1: After the commencement date, the Commerce Commission may continue any investigations and proceedings in relation to a breach or possible breach of the Electricity Industry Reform Act 1998
2: Any breach or possible breach of the Electricity Industry Reform Act 1998 subpart 2
3: The Commerce Commission must, on request by the Authority, provide to the Authority any information it holds that the Authority considers is, or may be, relevant to a breach or possible breach of Part 3
144: Exemptions granted under Electricity Industry Reform Act 1998
1: Any exemption granted by the Commerce Commission under the Electricity Industry Reform Act 1998
2: The Authority must include any exemption that is continued in force by this section in the list of exemptions that it is required to make publicly available under section 90(6)
4: Amendments to other enactments
Amendments to Commerce Act 1986
145: Amendments to Commerce Act 1986
Sections 146 to 156 Commerce Act 1986 2010-11-01 Commerce Act 1986
146: Interpretation
1: Section 2(1) Authority
2: Section 2(1) Electricity Commission
147: Matters covered by input methodologies
Section 52T(1)(b) , except where another industry regulator (such as the Electricity Authority) has the power to set pricing methodologies in relation to particular goods or services methodologies
148: Commission's costs in setting customised price-quality path
1: The heading to section 53Y in setting relating to assessing, setting, and reconsidering
2: Section 53Y(1) setting assessing a proposal for, and setting or reconsidering,
3: Section 53Y
1A: If the amount paid by a person in respect of a proposal for a customised price-quality path exceeds the Commission's costs in assessing the proposal and (if applicable) setting or reconsidering the customised price-quality path, the Commission may refund the excess to the person who paid it.
149: Interpretation for subpart
Section 54B
2: References in this subpart to Transpower include references to Transpower in its role as system operator under the Electricity Industry Act 2010.
150: Meaning of electricity lines services
1: Section 54C
1: In this subpart, unless the context otherwise requires, electricity lines services
a: means the conveyance of electricity by line in New Zealand; and
b: with respect to services performed by Transpower, includes services performed as system operator.
2: The definition of associate section 54C(4) section 12 of the Electricity Industry Reform Act 1998 section 73 of the Electricity Industry Act 2010
3: The definition of national grid section 54C(4) section 2(1) of the Electricity Act 1992 section 5
151: Definition of consumer-owned
1: Section 54D(1)(a) section 3 of the Electricity Industry Reform Act 1998 clause 6 of Schedule 2
2: Section 54D(1)
b: the trustees of each customer trust or community trust, or the committee of shareholders of each customer co-operative, as the case may be, that is referred to in paragraph (a) are elected by the persons who are consumers of the supplier in accordance with subsections (2A) to (2C); and
3: Section 54D
2A: The requirements in respect of elections for the purposes of subsection (1)(b) are as follows:
a: every trustee of the customer trust or community trust, or every member of the committee of shareholders of each customer co-operative, as the case may be, must have been elected solely by the persons who are consumers of the supplier; and
b: either—
i: at least 90% of the persons who are consumers of the supplier at the time of the election are eligible to vote in those elections; or
ii: in the case of a customer trust or community trust, there is ward-based voting that complies with the requirements of subsection (2B); and
c: each consumer must have an equal vote.
2B: The requirements for ward-based voting are as follows:
a: at least 90 % of the persons in a ward who are consumers of the supplier at the time of the election are eligible to vote in the election of all of the trustees of that ward; and
b: ward boundaries must provide for effective and fair representation of all consumers of the supplier, and in particular,—
i: the proportion of consumers in relation to the number of trustees of the relevant trust must be approximately equal in each ward; and
ii: the wards must not be based on volume of electricity supplied; and
c: ward boundaries must be reviewed periodically (at intervals determined by the Commission) in consultation with all consumers of the supplier.
2C: A trustee of a customer trust or community trust, or a member of the committee of shareholders of a customer co-operative, as the case may be, must be treated as having been elected solely by the persons who are consumers of the supplier if the person—
a: has been declared to be elected without an election in the case of a nominee at an election where the number of nominations was equal to or less than the number of vacancies; or
b: has been declared to be elected as the next-highest-polling candidate in the case where a higher-polling candidate at the election was unable to fill the elected position; or
c: has been declared to be elected by the remaining trustees or members following a casual vacancy that arose between elections, provided that—
i: the person is the first person to have been so elected since the last election at which consumers of the supplier voted; and
ii: the person is elected to hold office only until the next scheduled election at which consumers of the supplier will vote.
2D: The Commerce Commission may require a supplier that claims to meet the criteria in this section to verify that claim by statutory declaration.
2E: The declaration must be made by the persons and in the form required by the Commerce Commission.
152: How exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers
1: Section 54H
2A: A supplier must give notice in writing to the Commission within 10 working days after becoming aware that it has ceased to be consumer-owned.
2: Section 54H(3)
a: 15% of the persons who are domestic consumers of the supplier as at the date of the petition who are eligible to vote in elections for trustees of the customer trust or community trust, or for members of the committee of shareholders of the customer co-operative:
b: 20% of the persons who are domestic consumers of the supplier as at that date who are not eligible to vote in elections for trustees of the customer trust or community trust, or for members of the committee of shareholders of the customer co-operative:
c: 25% of the persons who are non-domestic consumers (either by number or by consumption of that class of consumer) of the supplier as at that date.
3: Section 54H
3A: In this section, domestic consumer section 5 Electricity Industry Act 2010
153: Administrative settlements with Transpower made before 1 April 2009
1: Section 54M(3)(b) path
2: Section 54M(6)
154: Proposals for customised price-quality paths
Section 54P(1)
a: omitting a section 52P determination an input methodology
b: omitting is made is published under section 52W
155: New heading and sections 54R and 54S substituted
The heading above section 54R sections 54R to 54U Transpower grid upgrade plans and capital expenditure proposals
54R: Approval of Transpower's grid upgrade plans
1: The role of the Electricity Commission in requesting or approving grid upgrade plan proposals by Transpower (including proposals to amend existing grid upgrade plans) is transferred to the Commission on the commencement date.
2: Subsection (1) applies both to proposals made on and after the commencement date and to any proposals that were requested or under consideration by the Electricity Commission before the commencement date.
3: Until the input methodology required by section 54S is determined and published under section 52W,—
a: Transpower must comply with Part F of the Electricity Governance Rules, as that Part relates to grid upgrade plan proposals; and
b: when considering grid upgrade plan proposals, the Commission—
i: must apply, with any necessary modifications, the grid investment test set out in Schedule F4 of Part F of the Electricity Governance Rules; and
ii: must apply, with any necessary modifications, those parts of section III of Part F of the Electricity Governance Rules that relate to the process for approving grid upgrade plans (which includes rules 12 to 15 and 17.2); and
iii: need not repeat any processes already undertaken by the Electricity Commission or undertake any processes that the Electricity Commission would have been required to undertake.
4: To avoid doubt,—
a: subsection (1) takes effect on the commencement date whether or not the Commerce Act (Transpower Thresholds) Notice 2008 or any administrative settlement between the Commission and Transpower has been amended to reflect the transfer referred to in that subsection; and
b: nothing in this section affects the transfer from the Electricity Commission to the Electricity Authority of all other roles relating to transmission, such as setting grid reliability standards and the transmission pricing methodology.
5: The Commission may change any timetables previously agreed for consultation on, and approval of, grid upgrade plan proposals, but must first consult Transpower on any timetable changes.
6: To facilitate the transfer of roles referred to in subsection (1), the Electricity Authority must give the Commission copies of all information it holds regarding grid upgrade plan proposals that were under consideration by the Electricity Commission before the commencement date.
7: In this section,— commencement date Electricity Governance Rules Electricity Industry Act 2010 grid upgrade plan
54S: Commission to prepare input methodology for capital expenditure proposals
1: The Commission must determine an input methodology for Transpower's capital expenditure proposals.
2: The input methodology must include—
a: requirements that must be met by Transpower, including the scope and specificity of information required, the extent of independent verification and audit, and the extent of consultation and agreement with consumers; and
b: the criteria the Commission will use to evaluate capital expenditure proposals; and
c: time frames and processes for evaluating capital expenditure proposals, including what happens if the Commission does not comply with those time frames.
3: The input methodology must be determined no later than 1 November 2011; but the Minister may, on the written request of the Commission, extend the deadline once by a period of up to 3 months, in which case notice of the extension must be given in the Gazette
4: Subpart 3 of Part 4 applies to the input methodology as if it were an input methodology referred to in section 52T, except as provided in subsection (2) or (3) of this section. 1986 No 5 ss 52T(1)(d), 52U
156: New section 54V substituted
Section 54V Interface with Electricity Industry Act 2010
54V: Impact of certain decisions made under Electricity Industry Act 2010
1: The Electricity Authority must consult with the Commission before amending the Electricity Industry Participation Code (the Code
2: The Electricity Authority must advise the Commission as soon as practicable after doing any of the following things that is likely to be relevant to the powers or functions of the Commission under this Part:
a: making any provision of the Code:
b: making any decision under the Code:
c: issuing any guidelines:
d: giving a direction to Transpower and 1 or more industry participants to enter into 1 or more transmission agreements under section 44 of the Electricity Industry Act 2010
3: The Electricity Authority must advise the Commission, as soon as practicable, following any change in the Code that results in increased costs to Transpower or to any distributor or class of distributors.
4: The Commission must take into account, before exercising any of its powers or performing any of its functions under this Part,—
a: any provision of the Code, or decision made under it, that relates to or affects the pricing methodologies or performance requirements applicable to Transpower:
b: any provision of the Code, or decision made under it, that relates to or affects the pricing methodologies applicable to any other line owner:
c: any guidelines of which it receives advice under subsection (2)(c) that are likely to be relevant to the exercise of the powers or performance of the duties or functions of the Commission under this Part:
d: any directions of which it receives advice under subsection (2)(d):
e: the levy payable by Transpower or any other line owner under section 128 of the Electricity Industry Act 2010
f: the continuance of supply obligations imposed by section 105 of the Electricity Industry Act 2010
5: The Commission must, if asked by the Electricity Authority to do so, reconsider a section 52P determination and, to the extent that the Commission considers it necessary or desirable to do so, amend the determination, to take account of any matter referred to in subsection (4).
6: Requirements relating to quality standards for Transpower in a section 52P determination must be based on, and be consistent with, quality standards for Transpower that are set by the Electricity Authority; but the Commission may prescribe them in any way it considers appropriate, as authorised by section 53M(3). Amendments to Energy (Fuels, Levies, and References) Act 1989
157: Amendments to Energy (Fuels, Levies, and References) Act 1989
Sections 158 159 Energy (Fuels, Levies, and References) Act 1989 2010-11-01 Energy (Fuels, Levies, and References) Act 1989
158: Part 2 repealed
Part 2 is repealed.
159: Purpose of levies
Section 14(1)(c) or gas retailers (as defined in section 2(1) of the Gas Act 1992) Electricity Act 1992) Amendments to Electricity Act 1992
160: Amendments to Electricity Act 1992
Sections 162 to 164 Electricity Act 1992 2010-11-01 Electricity Act 1992
161: Purposes
Section 1A
162: Interpretation
1: Section 2(1) electrical installation electrical installation
a: means—
i: in relation to a property with a point of supply, all fittings beyond the point of supply that form part of a system that is used to convey electricity to a point of consumption, or used to generate or store electricity; and
ii: in relation to a property without a point of supply, all fittings that form part of a system that is used to convey electricity to a point of consumption, or used to generate or store electricity; but
b: does not include any of the following:
i: an electrical appliance:
ii: any fittings that are owned or operated by an electricity generator and that are used, designed, or intended for use in or in association with the generation of electricity, or used to convey electricity from a source of generation to distribution or transmission lines:
iii: any fittings that are used, designed, or intended for use in or in association with the conversion, transformation, or conveyance of electricity by distribution or transmission lines
2: The definition of works section 2(1)
b: does not include any part of an electrical installation.
163: New section 43A inserted
1: The following section is inserted after section 43
43A: Different Ministries responsible for different codes
1: In order to allow electrical codes of practice to be administered by the most appropriate Ministry, all Ministers responsible for the administration of any provision of this Act must, by agreement from time to time, identify which particular codes, or codes relating to particular matters, are to be administered by which Ministry (referred to in this section as the responsible Ministry
2: In sections 36 and 37 and 39 to 42, in relation to a code, Secretary
3: In sections 38, 40, and 42, in relation to a code, Minister
2: Section 40(7) is consequentially amended by omitting means the chief executive of the Ministry, and
164: Consequential amendments and repeal of spent provisions
1: Section 2(1) is amended by repealing the following definitions: Commission Commission's board board community trust Council customer trust domestic consumer domestic premises electricity governance regulations GPS objectives and outcomes industry participant national grid performance standards publicise report date reporting period reserve energy rules electricity governance rules Rulings Panel Transpower
2: Part 5 is repealed.
3: Section 62
4: The heading above section 158A section 158G sections 158A to 158G
5: Subpart 2 of Part 14 is repealed.
6: Part 15 is repealed.
7: Section 177 Repeal of Electricity Industry Reform Act 1998
165: Repeal of Electricity Industry Reform Act 1998
The Electricity Industry Reform Act 1998 2010-11-01 Electricity Industry Reform Act 1998 Amendments to other enactments
166: Amendments to other enactments
The enactments specified in Schedule 6 2010-11-01 Crown Entities Act 2004 Electricity Amendment Act 2004 Energy Companies Act 1992 Gas Act 1992 Local Government Act 2002 Ombudsmen Act 1975 Electricity Governance Regulations 2003 Electricity Governance (Connection of Distributed Generation) Regulations 2007 Electricity Governance (Security of Supply) Regulations 2008 Electricity Industry Reform Act (Fees) Regulations 1998 Electricity Governance Rules 2003. These rules can be found via the Deemed Regulations on the Parliamentary Counsel Office web site.