New Zealand Legislation: Acts

2 Purpose

• (1) The purpose of this Act is to better ensure—

  • (a) that costs and prices in the electricity industry are subject to sustained downward pressure; and

  • (b) that the benefits of efficient electricity pricing flow through to all classes of consumers; and

  • (c) new investment in generation from renewable energy sources.

  (1A) The Act does this by—

  • (a) effectively separating electricity lines from generation and retail where those activities are co-located; and

  • (b) promoting effective competition in electricity generation and retail; and

  • (c) limiting barriers to new investment in generation from renewable energy sources.

  (2) The particular purpose of Parts 1 to 3 and 5 (separation of lines and supply) is—

  • (a) to prohibit certain involvements in electricity lines and electricity generation and retail that may create incentives or opportunities—

    • (i) to inhibit competition in the electricity industry; or

    • (ii) to cross-subsidise generation or retail activities from electricity lines activities; and

  • (b) to restrict relationships between a business that has involvement in electricity lines and a business that has involvement in electricity generation or retail, where those relationships may not otherwise be at arm's-length; and

  • (c) to provide specified exemptions for new investment in generation from renewable energy sources.

  (3) The particular purpose of Part 6 (price restraint) is to enable, in the event of a change in charges for line function services, the protection of domestic and rural consumers against a rate of change and level of change that is inappropriate.

  (4) [Repealed]

  (5) [Repealed]

  Section 2(1): substituted, on 14 October 2008, by section 4(1) of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).

  Section 2(1A): inserted, on 14 October 2008, by section 4(1) of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).

  Section 2(2): substituted, on 14 October 2008, by section 4(2) of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).

  Section 2(4): repealed, on 14 October 2008, by section 4(3) of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).

  Section 2(5): repealed, on 14 October 2008, by section 4(4) of the Electricity Industry Reform Amendment Act 2008 (2008 No 71).