Reprint as at 18 December 2013
Electricity Industry Reform Act 1998: repealed, on 1 November 2010, by section 165 of the Electricity Industry Act 2010 (2010 No 116).
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.
Title
1 Short Title and commencement
2 Purpose
Part 1Separation 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4 Meaning of electricity lines business [Repealed]
5 Meaning of electricity supply business [Repealed]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13 Meaning of agency [Repealed]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 2Separation 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18 20% aggregate cross-ownership prohibition [Repealed]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[Repealed]
22 Compliance with ownership separation rules [Repealed]
23 Agreements and negotiations leading to separation [Repealed]
24 Corporate separation [Repealed]
25 Arms length rules [Repealed]
26 12 months' lead in time to full arms length [Repealed]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
27 Purpose of sections [Repealed]
Exemptions for certain involvements
28 Exemption for existing involvements until separation [Repealed]
29 Exemption for acquisitions of one person's cross-involvements [Repealed]
Ban on expanding cross-involvements
30 Ban on expansion in cross-involvements [Repealed]
Options for persons wishing to expand
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
36 Compliance process for existing 20% aggregates [Repealed]
Mirror trust and mirror co-operative option
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
46 No expansion of control by trust-like agencies in electricity supply [Repealed]
Exemptions for generation
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
46C Exemptions for generation commissioned after 20 May 2003 and for reserve energy [Repealed]
Part 3Separation 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 4Separation of lines and supply—Taxation
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 5Separation 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
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 6Price 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 7Amendments to Electricity Act 1992
94 Regulations relating to information disclosure [Repealed]
95 Regulations [Repealed]
96 Offences [Repealed]
Part 8Split of Electricity Corporation of New Zealand
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 1Arm's-length rules
Schedule 2Amendments consequential upon split of ECNZ
Electricity Industry Reform Amendment Act 2008
Reprint notes
An Act to reform the electricity industry