New Zealand Legislation: Acts

4 Purpose

• (1) Section 2(1) is repealed and the following subsections are substituted:

  • “(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  (2) Section 2(2) is repealed and the following subsection substituted:

  • “(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  (3) Section 2(4) is repealed.

  (4) Section 2(5) is repealed.