New Zealand Legislation: Bills

5 Interpretation

• (1) The definitions of core assets, cross-involvement, customer co-operative, distributed generation, electricity business, electricity company, electricity lines business, electricity supply business, exempt person, existing cross-involvement, existing involvement, line, manager, mirror co-operative, mirror trust, nameplate, ownership separation rules, settling trust, transfer, and unseparated electricity business in section 3(1) are repealed.

  (2) Section 3(1) is amended by inserting the following definitions in their appropriate alphabetical order:

  “connected customer, in respect of a person, means a consumer (within the meaning of that term in section 2(1) of the Electricity Act 1992) to whom that person sells electricity, if—

  • “(a) the electricity is conveyed to that customer consumer on a line in which the person is involved; and

  • “(b) the customer consumer and the line are within the same local network area

  “connected customers selling cap means the rule in section 17C

  “connected electricity business means a business to which section 17D applies has the same meaning as in section 17D

  “connected generation, in respect of a person, means generation in which the person is involved that is connected to a line in which the person is involved, if the generation and the line are within the same local network area

  “connected generation cap means the rule in section 17A

  “electricity business means a business that does any of the things referred to in section 7(1)(a) to (c)

  “financial year means a period of 12 months ending on 31 March

  “line means works that are used or intended to be used for the conveyance of electricity, and includes a wire or cable

  “local network means lines, equipment, and plant that is used to convey electricity between the grid and a consumer or embedded generator or embedded network who are connected to that local network, and local network area has a corresponding meaning

  “local network means the lines, and associated equipment, owned or operated by an electricity distributor (within the meaning of section 2(1) of the Electricity Act 1992) in a contiguous geographic area or areas but does not include the national grid, and local network area has a corresponding meaning

  “manager, in relation to a person,—

  • “(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, for the avoidance of doubt,—

    • “(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 an electricity 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 having that position

  “nameplate means the full-load continuous rating of a generator under specific conditions as designated by its manufacturer and measured in megawatts in accordance with International Electrotechnical Commission Standard 60034-1 or any successor to that standard or any recognised equivalent standard

  “ownership separation rules means the rules in sections 17 to 17F 17C and section 20 (non-specific interests rule)

  “qualifying generation has the same meaning as in section 17C(2)

  “renewable energy source means solar, wind, hydro, geothermal, biomass, tidal, wave, ocean current sources, or any other energy source that occurs naturally and the use of which will not permanently deplete New Zealand’s energy sources of that kind, because those sources are generally expected to be replenished by natural processes within 50 years or less of being used

  “sell means any arrangement under which electricity is bought and sold, except financial hedge contracts, and sell electricity has a corresponding meaning”.

  (3) Every reference in the principal Act to “arms length rules” is replaced substituted by a reference to “arm’s-length rules”.

  (4) Section 3(3) is amended by omitting “sections 4(2), 5(2), and 19” and substituting “sections 17 to 17F and 19”.