New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) This section applies for the purposes of calculating the caps and thresholds referred to in the following sections:
(a) section 17A (connected generation cap):
(b) section 17C (connected customers selling cap):
(c) section 17D (threshold for corporate separation and arm's-length rules).
(2) A person is involved in any connected generation only in proportion to the extent of the person’s interest in the connected generation.
LineCo has a 20% shareholding in a joint venture company that operates a connected 100 MW generating plant.
LineCo is therefore involved in 20 MW of generation. Consequently, 20 MW of generation counts towards the cap on connected generation (50 MW in the case of thermal generation and unlimited in the case of renewable generation).
LineCo can sell to connected customers all of the total annual nominal MWh capacity of the 20 MW. The selling cap does not change in proportion to the extent of LineCo’s interest in the business selling the electricity. For example, if the business selling the electricity is a joint venture company in which LineCo has only a 30% shareholding, then LineCo’s selling cap is the same as it would have been if LineCo had a 100% shareholding in the selling business.
Fred is a director of LineCo. That directorship is his only interest in anything. Fred’s involvement in respect of both generation and selling is the same as LineCo’s.
LineCo must corporately separate and operate the generation and retail businesses at arm's-length (because the 20 MW exceeds the 10 MW threshold). However, it does not need to have separate managers because the 20 MW does not exceed the 30 MW threshold for separate managers in the arm's-length rules.
Section 7A: inserted, on 14 October 2008, by section 7 of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).
