Electricity Industry Reform Act 1998

  • repealed
  • Electricity Industry Reform Act 1998: repealed, on 1 November 2010, by section 165 of the Electricity Industry Act 2010 (2010 No 116).

Reprint as at 18 December 2013

Electricity Industry Reform Act 1998

Public Act1998 No 88
Date of assent8 July 1998
Commencementsee section 1
  • Electricity Industry Reform Act 1998: repealed, on 1 November 2010, by section 165 of the Electricity Industry Act 2010 (2010 No 116).


Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Economic Development.


Contents

Title

1 Short Title and commencement

2 Purpose

Part 1
Separation of lines and supply—Preliminary provisions

Interpretation

3 Interpretation

4 Meaning of electricity lines business [Repealed]

5 Meaning of electricity supply business [Repealed]

6 Meaning of business A and business B

7 Meaning of involved

7A How to measure involvement

8 Meaning of 10% threshold

9 Meaning of control rights

10 Meaning of equity return rights

11 Meaning of material influence

12 Meaning of associate

13 Meaning of agency [Repealed]

14 Substance matters, not form

Application of Act

15 Application to persons outside New Zealand

16 Act binds the Crown

Part 2
Separation of lines and supply—Rules and exemptions

Ownership separation

17 Ownership restrictions

Connected generation and connected customers selling caps

17A Connected generation cap rule

17B Small or encouraged connected generation

17C Connected customers selling cap rule

Corporate separation and arm’s-length rules

17D Threshold for corporate separation and arm's-length rules

17E Corporate separation and arm’s-length rules imposed

Use-of-systems agreements rules for businesses with 5 MW or more of connected generation

17F Use-of-systems agreements rules for businesses with 5 MW or more of connected generation

Exemption for Transpower

17G Exemption for Transpower New Zealand Limited for purpose of deferring investment in national grid

18 20% aggregate cross-ownership prohibition [Repealed]

Scope of application of rules in this Part

19 Certain businesses and involvements to be disregarded

Application of ownership separation rules to trust-like interests

20 Non-specific interests rule

21 Responsibility for remedying contravention

Process for compliance

[Repealed]

22 Compliance with ownership separation rules [Repealed]

23 Agreements and negotiations leading to separation [Repealed]

24 Corporate separation [Repealed]

25 Arms length rules [Repealed]

26 12 months' lead in time to full arms length [Repealed]

Interim exemptions, rules, and compliance options

[Repealed]

27 Purpose of sections [Repealed]

Exemptions for certain involvements

[Repealed]

28 Exemption for existing involvements until separation [Repealed]

29 Exemption for acquisitions of one person's cross-involvements [Repealed]

Ban on expanding cross-involvements

[Repealed]

30 Ban on expansion in cross-involvements [Repealed]

Options for persons wishing to expand

[Repealed]

31 Exemption for any involvement in single unseparated business [Repealed]

32 Exemption for certain Treaty-related transactions [Repealed]

33 Exemption for Highbank right of first refusal in Ngāi Tahu Treaty settlement [Repealed]

34 Exemption for companies with direct ownership [Repealed]

35 Other expansion option [Repealed]

Compliance process for existing 20% aggregates

[Repealed]

36 Compliance process for existing 20% aggregates [Repealed]

Mirror trust and mirror co-operative option

[Repealed]

37 Mirror trust option [Repealed]

38 Qualifying conditions on mirror trust option [Repealed]

39 Transfer of business to mirror trust [Repealed]

40 Beneficiaries of mirror trusts [Repealed]

41 Terms of trust deeds for mirror trusts [Repealed]

42 Mirror co-operatives [Repealed]

43 Exemption of mirror trusts from ownership separation rules [Repealed]

44 Exemption of mirror trusts from rule limiting expansion of control by trust-like agencies [Repealed]

45 Trusts that cease to be mirror trusts [Repealed]

No expansion of control by trust-like agencies in electricity supply

[Repealed]

46 No expansion of control by trust-like agencies in electricity supply [Repealed]

Exemptions for generation

[Repealed]

46A Exemption for new generation from new renewable energy source [Repealed]

46B Electricity lines business to publicly notify acquisition or increase of distributed generation [Repealed]

Exemptions for generation commissioned after 20 May 2003 and for reserve energy

[Repealed]

46C Exemptions for generation commissioned after 20 May 2003 and for reserve energy [Repealed]

Part 3
Separation of lines and supply—Enforcement and penalties

Preliminary

47 Contraventions

48 Inadvertent contraventions

49 Jurisdiction of High Court

50 Jurisdiction of District Courts

Penalties

51 Pecuniary penalties

52 Injunctions

53 Actions for damages

54 Court may order divestiture of assets or voting securities

55 Additional penalty for contravention involving commercial gain

56 Other powers to give directions, re-open agreements

56A Limits on defences and penalties for failure to publicly notify acquisition or increase of distributed generation [Repealed]

Miscellaneous provisions

57 Miscellaneous

58 Application of Commerce Act 1986 and the Crown Entities Act 2004 provisions

59 Additional proceedings

Part 4
Separation of lines and supply—Taxation

[Repealed]

60 Purpose [Repealed]

61 Mirror co-operatives [Repealed]

62 Mirror trusts [Repealed]

63 Consolidation rules modified generally for purposes of corporate ownership split and ownership split [Repealed]

64 Gifts not to form part of capital gain amounts [Repealed]

65 No stamp duty payable [Repealed]

66 Shares not acquired for resale [Repealed]

67 Definitions for tax sections [Repealed]

Part 5
Separation of lines and supply—Miscellaneous provisions

Anti-avoidance

68 Duty not to defeat purposes of Parts 1 to 5

No compensation

69 No compensation

Disclosure

70 Disclosure regime

70A Disclosure as to electricity sold to connected customers within local network area

70B Directors must report compliance with arm’s-length rules

Matters relevant to implementation of Part 2

[Repealed]

71 Trust deeds [Repealed]

72 Beneficiaries of customer lines trusts [Repealed]

73 Shareholders of lines co-operatives [Repealed]

74 Power to make gifts [Repealed]

75 Application of Securities Act 1978 [Repealed]

76 Protection from other Acts [Repealed]

77 Member approvals, etc [Repealed]

78 Consultation requirements [Repealed]

79 Technical redundancy [Repealed]

Extensions and exemptions

80 Extensions

81 Exemptions

Application of other Acts

82 Application of Commerce Act 1986

83 Not interconnected under Commerce Act 1986

84 Application of Energy Companies Act 1992 [Repealed]

85 Dealing with land held for public works [Repealed]

86 Illegal Contracts Act 1970

Regulation-making powers

87 Regulations

Part 6
Price restraint for line charges for domestic and rural consumers

88 Regulations relating to charges for line function services

89 Way in which price restraint may be imposed

90 Definition of domestic premises

91 Offences

92 Other Acts relating to price control not affected

93 Interpretation

Part 7
Amendments to Electricity Act 1992

[Repealed]

94 Regulations relating to information disclosure [Repealed]

95 Regulations [Repealed]

96 Offences [Repealed]

Part 8
Split of Electricity Corporation of New Zealand

[Repealed]

97 Interpretation [Repealed]

98 Directions by shareholding Ministers [Repealed]

99 Principal objective of ECNZ [Repealed]

100 Enactments amended [Repealed]

101 Amendment to Electricity Act 1992 [Repealed]

Schedule 1
Arm's-length rules

Schedule 2
Amendments consequential upon split of ECNZ

Electricity Industry Reform Amendment Act 2008

Reprint notes


An Act to reform the electricity industry