The purpose of this Act is to provide a framework for the regulation of the electricity industry.

In this Act, unless the context otherwise requires,—

In this Act, the regulations, and the Code, unless the context otherwise requires, a reference to a person who breaches a provision of this Act, the regulations, or the Code is a reference to a person who—

A breach includes a failure to comply.

The following are industry participants for the purposes of this Act:

The following industry service providers are industry participants:

The Authority is not an industry participant, except to the extent that it performs functions as an industry service provider.

The system operator is Transpower.

As well as acting as system operator for the electricity industry, the system operator must—

The Code must—

A failure to comply with subsection (2) is to be treated, for the purposes of enforcement under this Part, as a breach of the Code.

Every industry participant must—

A failure to comply with subsection (1) may result in an industry participant being—

Despite section 9(1)(a), an industry participant need not register if—

The Authority may grant an individual exemption to an industry participant only if the Authority is satisfied that—

The Authority may amend or revoke an individual exemption, by issuing a notice in the Gazette that identifies the exempt participant and gives reasons for the amendment or revocation, but only if the Authority—

To avoid doubt, an individual exemption notice issued under subsection (1)(b) is not a regulation for any purpose.

The Authority must publicise a list of all current class and individual exemptions.

Despite section 9(1)(b), an industry participant need not comply with the Code, or specific provisions of the Code, if—

The Authority may grant an individual exemption to an industry participant only if the Authority is satisfied that—

The Authority may amend or revoke an individual exemption, by issuing a notice in the Gazette that identifies the exempt participant and gives reasons for the amendment or revocation, but only if the Authority—

To avoid doubt, an individual exemption notice issued under subsection (1)(b) is not a regulation for any purpose.

The Authority must publicise a list of all current class and individual exemptions.

The Electricity Authority is established.

The Authority is a Crown entity for the purposes of section 7(1) of the Crown Entities Act 2004 (and, by virtue of being named in Part 3 of Schedule 1 of that Act, is an independent Crown entity).

The Crown Entities Act 2004 applies to the Authority except to the extent that this Act expressly provides otherwise.

The Authority comprises between 5 and 7 members.

When recommending a person for membership of the Authority, the Minister must have regard to the need to ensure that the Authority has amongst its members knowledge and experience of, and capability in, the following:

The Minister may not recommend a person for membership of the Authority unless he or she has first publicised an invitation for nominations from interested parties and considered any nominations received.

No member of the Authority, when acting as a member, may represent, or promote the interests or views of, any organisation or any particular industry participant or group of industry participants.

This section does not limit, and is in addition to, the duties of members set out in Part 2 of the Crown Entities Act 2004.

The objective of the Authority is to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.

The Authority’s functions are as follows:

Instead of, or as well as, contracting for market operation services, the Authority may itself perform—

In performing its functions, the Authority must have regard to any statements of government policy concerning the electricity industry that are issued by the Minister.

Before issuing a statement under this section, the Minister must consult with the Authority.

Every statement of government policy concerning the electricity industry must be—

A statement of government policy concerning the electricity industry—

On written request by the Minister, the Authority must review and report on any matter relating to the electricity industry that is specified by the Minister.

The Minister must consult the Authority before issuing a request for a review.

When requesting a review, the Minister may, without limitation,—

If, in the course of a review, the Authority considers that there are matters that fall outside the scope of the review but which it should nevertheless report on to the Minister, the Authority may include a report on those matters in the final report or in a separate report.

Within 15 days after receiving a final report on a review conducted under this section, the Minister must make the report publicly available.

However, in making the report publicly available, the Minister may omit any information that he or she would be likely to withhold if it were requested under the Official Information Act 1982.

The Authority must make, and make publicly available, a charter that sets out—

Before making a charter, the Authority must consult interested parties on a draft charter.

The Authority and all advisory groups must comply with the charter made under this section.

The first charter must be made within the first year after this section comes into force.

Until the first charter is made under this section,—

The Authority must appoint a Security and Reliability Council.

The function of the Security and Reliability Council is to provide independent advice to the Authority on—

The Council must meet at least once every 6 months.

The Council may determine its own procedure, subject to this Act and the charter (once made) prepared under section 19.

The Authority must ensure that the members of the Council have between them appropriate knowledge and experience of the electricity industry to provide advice to the Authority, but members need not be independent persons.

The Authority may not appoint a person as a member of the Council unless the Authority has first publicised an invitation for nominations for membership and considered any nominations received.

The terms of appointment as a member of the Council are as determined by the Authority on an individual basis.

The Authority must establish 1 or more other advisory groups to provide independent advice to the Authority on the development of the Code and on market facilitation.

Every advisory group must include people whom the Authority considers have appropriate knowledge of, and experience in, the electricity industry and consumer issues, but members need not be independent persons.

The following provisions of the Crown Entities Act 2004 apply, with all necessary modifications, to or in respect of each member of an advisory group appointed under section 20 or 21 (an advisory group member) as if the advisory group were a statutory entity:

Section 47(1) of the Crown Entities Act 2004 (which is about remuneration) applies to advisory group members as if the advisory groups were autonomous Crown entities.

Each advisory group member is deemed to be a member of the Authority for the purpose of—

For the purpose of section 152 of the Crown Entities Act 2004 (which is about disclosing payments in an annual report), the Authority must treat each advisory group member as if he or she were a member of the Authority.

There continues to be a Rulings Panel.

The Rulings Panel is the same body as the body established by regulation 160 of the Electricity Governance Regulations 2003.

The Rulings Panel comprises up to 5 members appointed by the Governor-General.

The Governor-General must appoint—

The Governor-General may make an appointment under subsection (1) or (2) only in accordance with a recommendation by the Minister given after the Minister has consulted with the Minister of Justice and the Authority.

Further provisions relating to the membership of the Rulings Panel may be set out in regulations made under section 112.

The function of the Rulings Panel is—

The Authority must fund the Rulings Panel.

The Authority may recover the costs of that funding from industry participants through levies payable under section 128.

The remuneration of members of the Rulings Panel, other than remuneration covered by subsection (4), must be set by the Remuneration Authority under section 12(1)(a)(va) of the Remuneration Authority Act 1977 as if the members were members of an independent Crown entity.

Members of the Rulings Panel are entitled, in accordance with the fees framework (as defined in section 10(1) of the Crown Entities Act 2004), to be reimbursed for actual and reasonable travelling and other expenses incurred in carrying out their functions as members.

The Authority must maintain and publicise a register of industry participants.

The register must record—

For the purposes of the register,—

The register may, but need not, contain the names of all or any industry participants that are exempt from the obligation to be registered.

The name, contact details, and business details of every person that, immediately before this section comes into force, is recorded as an industry participant on the register maintained by the Electricity Commission under regulation 9 of the Electricity Governance Regulations 2003—

An industry participant is registered as soon as its information is recorded, or deemed to be recorded, on the register.

A registered industry participant must supply updated information, as soon as practicable, if its name, contact details, or business details change.

The Authority must remove an industry participant’s name, contact details, and business details from the register of current registered participants if satisfied that the person has ceased to be a participant; but the Authority may retain a record of the participant’s name and business details on the register as a former participant.

A person ceases to be a registered industry participant when the person’s name is no longer recorded on the register as a current industry participant.

An industry participant’s obligations under the Code, and any proceedings underway or orders in effect under the Code, are not affected merely because the participant ceases to be registered as a current participant.

An industry participant that fails, without reasonable excuse, to register as an industry participant commits an offence and is liable on conviction to a fine not exceeding $20,000.

A registered industry participant commits an offence, and is liable on conviction to a fine not exceeding $20,000, if it knows or ought to know that the information recorded for it on the register is wrong or incomplete and it fails to supply updated information as required by section 29(2).

The Code may contain any provisions that are consistent with the objective of the Authority and are necessary or desirable to promote any or all of the following:

The Code may not—

The Code may incorporate by reference any of the following:

Schedule 1 applies to any material incorporated by reference into the Code.

The Code is a disallowable instrument, but not a legislative instrument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

If any provision of the Code conflicts with this or any other Act, or with any regulation made under this or any other Act, the Act or regulation prevails.

The Code made under section 36 must comprise—

The Code must include whatever changes to the text of the enactments referred to in subsection (1)(a) are necessary or reasonably required to ensure that the Code—

To avoid doubt, the Code must not include provisions relating to statements of opportunities or grid planning assumptions.

The Code is deemed to include the provisions of any regulations or rules made, within 6 months before this section comes into force, under section 172E(3) of the Electricity Act 1992 (which relates to regulations and rules made urgently); but—

The Minister must certify a draft Code that complies with section 34.

The Minister must publicise the draft Code as soon as practicable after it is certified.

The Minister’s certificate is conclusive evidence that the draft complies with section 34.

The certified draft Code comes into force as the Code on the day this section comes into force.

That Code is deemed to have been made by the Authority on that day.

The Authority must make the Code, and all amendments to it, publicly available.

The Minister must present a copy of the Code, and of all amendments to it, to the House of Representatives in accordance with section 4 of the Regulations (Disallowance) Act 1989.

The Authority may periodically issue and make publicly available consolidated versions of the Code with all amendments incorporated, in which case the consolidation must clearly show the date on which it is issued and when each amendment was made.

The Authority may amend the Code at any time, subject to section 39 of this Act and section 54V of the Commerce Act 1986.

An amendment may be an addition, an omission, a substitution, or a complete replacement.

An amendment is made by—

An amendment may not come into force until a date that is at least 28 days after the date of the Gazette notice.

Before amending the Code, the Authority must—

The regulatory statement required for a proposed amendment to the Code must include the following:

Despite subsection (1), the Authority need not comply with subsection (1)(b) or (c) if it is satisfied on reasonable grounds that—

The Authority may amend the Code without complying with section 39(1) if—

Every amendment made under this section—

The Authority must develop, issue, and make publicly available a consultation charter that includes guidelines, not inconsistent with this Act, relating to the processes for amending the Code and consulting on proposed amendments.

However, no amendment to the Code is invalid merely because—

Before the date that is 1 year after this section comes into force, the Authority must either—

The new matters are as follows:

A report provided under subsection (1)(b) must—

The Minister may amend the Code by including provisions for any of the new matters identified in section 42(2) if—

The Minister may amend the Code as if he or she were the Authority, and sections 37 to 40 apply accordingly.

Before amending the Code, the Minister must—

The power given by this section may not be exercised earlier than 1 year after, and not more than 3 years after, the date on which this section comes into force.

Without limiting section 32, the Code may require Transpower and 1 or more industry participants to enter into 1 or more agreements for connection to, use of, and (where relevant) investment in, the national grid (a transmission agreement).

The Code may prescribe default terms and conditions that are deemed to be included in transmission agreements.

The parties to a transmission agreement may, by mutual consent, agree to modify any default terms and conditions, but only if and to the extent that the Code permits those terms and conditions to be modified.

Every transmission agreement between Transpower and an industry participant is deemed to include a provision under which the industry participant agrees to pay Transpower any amounts that Transpower charges the industry participant in accordance with the transmission pricing methodology.

A transmission agreement is binding on both parties and enforceable as if it were a contract between the parties that had been freely and voluntarily entered into.

If the parties do not comply with a requirement in the Code to enter into 1 or more transmission agreements, the default terms and conditions in the Code, and the provision in subsection (4), are binding on both parties and enforceable as if they were set out in a transmission agreement.

The purposes for which the powers in section 46 may be exercised are as follows:

The Authority may exercise the powers in this section only for a purpose described in section 45.

The Authority may require an industry participant to do any of the following:

Nothing in this section requires a person to give the Authority access to any premises, except for a purpose described in section 45(b) and under a warrant issued under section 47.

If an industry participant, whether directly or through an officer or employee, fails to comply with a requirement of the Authority under this section, the failure is treated as if it were a breach of the Code and the Authority may apply to the Rulings Panel for any order under section 54.

The Authority may, for a purpose specified in section 45(b), authorise an employee of the Authority (an authorised person) to search, under a warrant issued under subsection (2), any place named in the warrant for the purpose of ascertaining whether an industry participant has breached, or may breach, this Part, Part 4, the regulations, or the Code.

An issuing officer (within the meaning of section 3 of the Search and Surveillance Act 2012), on an application made in the manner provided in subpart 3 of Part 4 of that Act, who is satisfied that there are reasonable grounds to believe that it is necessary, for the purpose of ascertaining whether an industry participant has breached, or may breach, this Part, Part 4, the regulations, or the Code, for an authorised person to search any place may, by warrant, authorise that person to search a place specified in the warrant.

The provisions of Part 4 of the Search and Surveillance Act 2012 (except for sections 118 and 119) apply, with any necessary modifications.

Nothing in section 46 limits any claim for legal professional privilege.

If the Authority requires an industry participant to do anything referred to in section 46, neither the industry participant nor any officer or employee of the industry participant is excused from answering a question or giving any information or document on the ground that to do so may incriminate or tend to incriminate the industry participant or the officer or employee.

However, any self-incriminating statement or document made or given by an officer or employee, or an industry participant that is an individual, is not admissible as evidence in any criminal or civil proceedings against that person.

This section applies to a generator or purchaser that—

A generator or purchaser is adjudicated bankrupt if,—

The Authority may suspend the generator’s or purchaser’s rights to make bids or offers under the Code, with effect from a time to be determined by the Authority, which must be a time later than the relevant event under subsection (1).

Despite any suspension of trading ordered by the Authority, the generator or purchaser must continue to meet its common quality obligations under the Code, to the extent that the suspension order permits.

After a suspension order under this section takes effect,—

Complaints about breaches or possible breaches of the Code must be made to the Authority at first instance.

The Authority must deal with complaints in accordance with this Part and the regulations.

Complaints may subsequently be referred to the Rulings Panel, in accordance with this Part and the regulations, by either the Authority or an industry participant.

The Rulings Panel may determine appeals against decisions made under the Code, and resolve disputes between industry participants that relate to the Code, that are of a kind that are identified in the regulations or the Code.

If the regulations or the Code prescribe practices and procedures in relation to any kind of such appeal or dispute, the Rulings Panel must apply those practices and procedures when dealing with the appeal or dispute.

The Authority may at any time apply to the High Court for the grant of an interim injunction—

The court may grant the injunction if, in the opinion of the court, it is desirable to do so.

Subsection (2) applies, in the case of an injunction under subsection (1)(a),—

The court may rescind or vary the injunction on application by the Authority or any participant affected by the injunction.

The court must not require the Authority, as a condition of granting an interim injunction, to give an undertaking as to damages, and must not, when determining the application, take into account the fact that the Authority is not required to give such an undertaking.

Nothing in this Act or the regulations prevents the Authority from seeking an interim injunction under this section at any time.

The Authority may not exercise its powers in relation to a breach or possible breach of the Code if the breach—

However, once the Authority has exercised a power in relation to the breach or possible breach, the limitations in subsection (1) do not apply.

Every complaint, appeal, or dispute before the Rulings Panel must be dealt with by a panel of 3 members, one of whom must be the chairperson (except when the deputy chairperson acts on his or her behalf).

The Rulings Panel may determine its own procedures, subject to this Act and the regulations, the requirements of natural justice, and, in relation to particular kinds of appeals and disputes, the Code.

The Rulings Panel has all the powers necessary to perform its functions in accordance with this Act, the regulations, and the Code.

On determining a complaint that an industry participant has breached the Code, the Rulings Panel may decide that no action should be taken, or do any 1 or more of the following:

The Rulings Panel must take into account its own previous decisions in respect of any similar situations previously dealt with by the Authority or any predecessor of the Authority.

The remedies that the Rulings Panel may impose under section 54 are the only remedies in respect of a breach of the Code.

No one may bring an action for breach of statutory duty that arises out of, or relates to, a breach of the Code.

No industry participant may bring an action in tort against a market operation service provider that arises out of, or relates to, any act, matter, or thing done, or required or omitted to be done, by the market operation service provider in the course of it providing market operation services, provided that the act or omission is not a fraudulent act or omission by the market operation service provider.

Except as provided in subsection (3), nothing in this section limits the recovery of—

The Rulings Panel may make a pecuniary penalty order under section 54(1)(d) only on an application by the Authority.

In determining whether to make a pecuniary penalty order and, if so, the amount of the order, the Rulings Panel must consider the seriousness of the breach of the Code, having regard to the following:

An industry participant that breaches a compliance order made under section 54(1)(f), or an order made under section 54(1)(c), commits an offence and is liable on conviction to a fine not exceeding $20,000.

The Rulings Panel may make a suspension order or a termination order against an industry participant if—

A suspension order suspends all or specified rights under the Code of the industry participant against whom it is made, subject to any conditions set out in the order, and for the period specified in the order.

A termination order terminates all or specified rights under the Code of the industry participant against whom it is made.

A termination order does not affect any liability for payment of money under the Code before the date of the relevant order.

An industry participant commits an offence, and is liable on conviction to a fine not exceeding $20,000, if it fails to comply with—

In determining an appeal, or resolving a dispute, of a kind identified in the regulations or the Code, the Rulings Panel may make any determination, order, or direction that it thinks fit, subject to—

Every order of the Rulings Panel under section 54 or 58—

An industry participant that is affected by a decision of the Rulings Panel may appeal that decision to the High Court on the ground of lack of jurisdiction.

There is a right of appeal to the High Court, on a question of law only, against any decision of the Authority or the Rulings Panel.

The Authority or an industry participant may appeal to the High Court against the following orders made by the Rulings Panel:

An industry participant may appeal to the High Court against a suspension order or termination order made by the Rulings Panel.

An industry participant may exercise a right of appeal under this section only if the participant is—

An appeal under this Part must be made by giving notice of appeal within 20 working days after the date of the decision or order appealed against or within any further time that the High Court allows.

In determining an appeal under section 65, the High Court may do any 1 or more of the following things:

The High Court may, instead of determining an appeal, direct the Rulings Panel to reconsider, either generally or in respect of any specified matters, the whole or any specified part of the matter to which the appeal relates.

In giving any direction under this section, the court must—

In reconsidering the matter, the Rulings Panel must have regard to the court’s reasons for giving the direction, and the court’s directions.

If an appeal is brought against any decision or order of the Rulings Panel, the decision or order remains in full force pending the determination of the appeal, unless the High Court orders to the contrary.

The High Court may, in its discretion, order that the hearing or any part of the hearing of any appeal under this Part be held in private.

The High Court may make an order prohibiting the publication of any report or description of a proceeding or any part of a proceeding (whether heard in public or in private), but no order may prohibit the publication of any determination of the court.

Any party to an appeal before the High Court under this Part who is dissatisfied with a decision or order of the High Court, may, with the leave of the High Court or of the Court of Appeal, appeal to the Court of Appeal.

Section 56 of the Senior Courts Act 2016 applies to the appeal.

In determining whether to grant leave to appeal under this section, the court to which the application for leave is made must have regard to the following matters:

The court granting leave may, in its discretion, impose any conditions that it thinks fit, whether as to costs or otherwise.

The purpose of this Part is to promote competition in the electricity industry—

In general terms, this Part imposes rules in respect of distributors as follows:

Subsection (2) is intended only as a guide to the general scheme and effect of this Part.

In this Part and Schedules 2 and 3, unless the context otherwise requires,—

For the purposes of this Act, a person is involved in a distributor, a generator, or a retailer if the person—

A person exceeds the 10% threshold in respect of a business if the person—

Involvement has a corresponding meaning.

This section is subject to Schedule 2.

A person who is involved in a distributor must not be involved in 1 or more generators that have a total capacity of more than 250 MW that is generated by 1 or more generating plants that are directly connected to the national grid.

To avoid doubt, generation connected to a distribution network is not directly connected to the national grid.

The person or persons who carry on the business of distribution must carry on that business in a different company from the company that carries on the business of a connected generator or a connected retailer.

Every person who is involved in a distributor, and every person who is involved in a connected generator or a connected retailer, must comply, and ensure that the person’s businesses comply, with the arm’s-length rules.

In this section, unless the context otherwise requires,—

Every director of a distributor in respect of which there is a connected retailer or a connected generator must ensure that—

A use-of-systems agreement required by subsection (1)(a) must be entered into, in the case of a business to which the corporate separation rule does not apply, as if the distribution business and the connected retailer or connected generator were separate legal persons.

In this section, unless the context otherwise requires,—

The directors of the distributor must ensure that there is also publicised, and provided to the Authority, a certificate signed by those directors stating whether or not, in the preceding calendar year,—

Every director commits an offence who—

Every director who commits an offence under subsection (5) is liable on conviction to a fine not exceeding $200,000.

A distributor, and any other person listed in subsection (2), must not pay, or offer to pay, any consideration to a retailer in respect of the transfer to a connected retailer of any retail customers who are connected to the distributor’s networks.

The persons are—

In this section, connected retailer and connected generator have the same meaning as in section 77.

To avoid doubt, subsection (1) includes a prohibition on—

Every person commits an offence who knowingly fails to comply with this section and is liable on conviction to a fine not exceeding $500,000.

This section applies if a distributor has a connected retailer.

Every person listed in subsection (3) must ensure that any rebates or dividends or other similar payments paid do not discriminate between—

The persons are—

In this section, connected retailer has the same meaning as in section 77.

Every director and trustee commits an offence who knowingly fails to comply with this section and is liable on conviction to a fine not exceeding $200,000.

If the High Court is satisfied on the application of the Authority that a person has breached a provision of this Part, the court may order the person to pay to the Crown a pecuniary penalty that the court determines to be appropriate.

The amount of any pecuniary penalty must not, in the case of an individual, exceed $500,000 in respect of each act or omission.

The amount of any pecuniary penalty must not, in the case of a body corporate, exceed, in respect of each act or omission, the greater of—

In any proceedings under this section for a pecuniary penalty, the standard of proof is the standard of proof applying in civil proceedings.

In determining whether to make a pecuniary penalty order and, if so, the amount of the order, the court must have regard to all relevant matters, including—

Where it appears to the High Court, on the application of the Authority or any other person, that a person intends to engage, or is engaging, or has engaged, in conduct that constitutes or would constitute a breach of a provision of this Part, the court, by order, may do all or any of the following things:

In any proceedings under this section, the Authority, upon the order of the court, may obtain discovery and administer interrogatories.

Every person is liable in damages for any loss or damage caused by that person engaging in conduct that constitutes a breach of a provision of this Part.

If the High Court is satisfied, on the application of the Authority or any other person, that a person has breached a provision of this Part, the court may give directions ordering a person in breach to renegotiate any agreement that contravenes, or gives rise to a breach of, a provision of this Part, on such terms as the court specifies.

If directions under subsection (1) are not complied with to the satisfaction of the court, the court may—

In any civil proceedings under this Part, the Authority, upon the order of the High Court, may obtain discovery and administer interrogatories.

Civil proceedings under this Part may not be commenced more than 3 years after the matter giving rise to the breach arose.

Where conduct by any person constitutes a breach of 2 or more provisions of this Part, civil proceedings may be instituted under this Part against that person in relation to the breach of any 1 or more of the provisions; but no person is liable to more than 1 pecuniary penalty under this Part in respect of the same conduct.

Criminal proceedings under this Part may be started against a person whether or not proceedings for an order under section 80 have been started against the person for the same or substantially the same breach in respect of which the criminal proceedings have been started.

Uncompleted proceedings for an order under section 80 must be stayed if criminal proceedings are started or have already been started against the person for the same or substantially the same breach in respect of which the order is sought.

The following provisions of the Commerce Act 1986 apply for the purpose of the exercise by the Authority and the High Court of their jurisdiction and powers under this Part as if the Authority were the Commerce Commission, as if references to provisions of the Commerce Act 1986 were references to corresponding provisions of this Part of this Act, and with other necessary modifications:

Proceedings brought under this Part are in addition to any proceedings brought under any other Act.

This Part extends to persons outside New Zealand who are involved in a distributor, generator, or retailer in New Zealand.

Each director of a distributor referred to in section 77(1) (use-of-system agreements) must ensure that the distributor discloses the quantity of electricity sold each financial year by connected retailers to customers who are connected to its local network (within the meanings in that section).

The disclosure must be made in a statement to the Authority within 2 months after the end of the financial year.

The statement must be in the form prescribed by the Authority from time to time.

The statement must be publicised by the Authority and the distributor.

Every director commits an offence who—

Every director who commits an offence under subsection (5) is liable on conviction to a fine not exceeding $200,000.

Each director of a business to which the arm’s-length rules apply must provide to the Authority, no later than 31 March in each year, a statement confirming whether or not the director has complied with all of the arm’s-length rules during the preceding calendar year.

The directors and the Authority must ensure that the statement is publicised.

Every director commits an offence who—

Every person who commits an offence under subsection (3) is liable on conviction to a fine not exceeding $200,000.

The Authority may, by notice in the Gazette, exempt—

The Authority may grant an exemption only if it is satisfied that—

The exemption takes effect from the date specified in the exemption (which may not be earlier than the date of the Gazette notice).

The Authority may grant an exemption on any terms and conditions that it reasonably considers are necessary to give effect to the purpose of this Part.

The Authority may in like manner vary or revoke any such exemption.

The Authority must make publicly available a list of all current exemptions under this section.

An exemption under this section is neither a disallowable instrument nor a legislative instrument for the purposes of the Legislation Act 2012 and does not have to be presented to the House of Representatives under section 41 of that Act.

Except as provided in section 92, nothing in this Part overrides or limits the provisions of the Commerce Act 1986.

For the purposes of Part 2 of the Commerce Act 1986, businesses to which section 76 (corporate separation and arm’s-length rules) applies are deemed to be separate bodies corporate that are not interconnected, despite the fact that they may have a common owner.

Subsection (1) applies despite section 2(7) of the Commerce Act 1986.

An agreement lawfully entered into does not become illegal or unenforceable by any party by reason of the fact that its performance is in breach of a provision of this Part.

An agreement entered into in breach of a provision of this Part is voidable at the option of any party to the agreement who is not in breach of a provision of this Part by notice in writing to the other party to the agreement at any time within 1 month after the innocent party has notice that the agreement is in breach of a provision of this Part.

Any question under this Part or Schedule 2 or 3 is to be determined according to the nature, substance, and economic effect of the interest or relationship or other facts, and independently of form.

Any person described in subsection (2) may make a complaint to the dispute resolution scheme concerning Transpower (except in its capacity as system operator) or any distributor or retailer.

The persons who may make a complaint are any persons (including consumers, potential consumers, and owners and occupiers of land) except members of the dispute resolution scheme.

The dispute resolution scheme is either—

The procedures for making complaints to the dispute resolution scheme are as set out in the rules of the dispute resolution scheme.

The dispute resolution scheme may resolve disputes between members of the dispute resolution scheme concerning the application of the indemnity in section 46A of the Consumer Guarantees Act 1993 (an indemnity dispute).

Transpower (other than in its capacity as system operator), and every distributor and retailer, must be a member of the dispute resolution scheme, unless exempt under subsection (3).

A person commits an offence and is liable on conviction to a fine not exceeding $100,000 if the person knowingly refuses or fails to become a member of the dispute resolution scheme.

A person need not be a member of a dispute resolution scheme if—

The Minister of Consumer Affairs may grant an individual exemption to a person only if he or she is satisfied that membership of the dispute resolution scheme by the person is not necessary in order to meet the purpose of the dispute resolution scheme because complaints are unlikely to be made against the person or because complaints should be made in another forum, and the person is unlikely to be involved in indemnity disputes.

The Minister of Consumer Affairs may amend or revoke an individual exemption, by issuing a notice in the Gazette that identifies the exempt participant and gives reasons for the amendment or revocation, but only if the Minister—

To avoid doubt, an individual exemption notice issued under subsection (3)(b) is not a regulation for any purpose.

The Ministry must publicise a list of all current class and individual exemptions.

Members of the dispute resolution scheme must comply with the rules of the scheme.

On the application of the person responsible for the dispute resolution scheme, the District Court may require a member of the scheme to do any of the following:

If the District Court is satisfied that the terms of a binding settlement are manifestly unreasonable, the court’s order under subsection (2)(b) may modify the terms of the binding settlement, but only to the extent that the modification results in a binding settlement that could have been made under the dispute resolution scheme.

If an order requiring a member to comply with a binding settlement includes a requirement that the member pay an amount of money to a person, that order (or part of the order) may be enforced as if it were a judgment by the District Court for the payment of a sum of money.

A reference in this section to a member includes a reference to a person who was a member of the dispute resolution scheme at the relevant time but is no longer a member at the time of the application or order.

A member or former member of the dispute resolution scheme who, knowing that the member or former member is subject to an order made under section 97, fails to comply with the order, or fails to comply with the order within the time or in the manner required by the order, commits an offence and is liable on conviction to a fine not exceeding $100,000.

Nothing in this section applies to an order or part of an order of the District Court referred to in section 97(4).

The trustees of a customer trust and the trustees of a community trust must, within 4 months after the end of each financial year of the trust,—

The trustees of a customer trust and the trustees of a community trust must make publicly available the financial statements referred to in section 99 and the auditor’s report on those financial statements.

The trustees must also notify the fact that copies of the documents referred to in subsection (1) are so available (and where) by advertisement in the news section of 2 separate editions of each newspaper that is widely read by customers of the customer trust or by persons in the community of the community trust (as the case requires).

The trustees of a community trust and the trustees of a customer trust must, in each financial year, hold an annual meeting of beneficiaries at which the beneficiaries appoint an auditor to hold office from the conclusion of that meeting until the conclusion of the next annual meeting of beneficiaries.

The trustees may fill any casual vacancy in the office of auditor by appointing an auditor to hold office until the conclusion of the next annual meeting of beneficiaries (but, while the vacancy remains, the surviving or continuing auditor, if any, may continue to act as auditor).

The fees and expenses of the auditor must be fixed—

An auditor of a customer trust or community trust—

See sections 37 to 39 of the Financial Reporting Act 2013 (which provide for the appointment of a partnership and access to information in relation to a customer trust or community trust).

In addition, sections 207B and 207T to 207W of the Companies Act 1993 apply in relation to the auditor.

Those sections of the Companies Act 1993 apply as if references to a company were to a trust, references to a director were to a trustee, references to a board were to the trustees, references to shareholders were to beneficiaries, references to a subsidiary were to a distributor owned by the trust and the distributor’s subsidiaries, and all other necessary modifications were made.

The trustees must give no less than 14 days’ notice of the annual meeting of beneficiaries to appoint an auditor in the news section of 2 separate editions of each newspaper that is widely read by customers of the customer trust or by persons in the community of the community trust (as the case requires).

Every beneficiary has 1 vote.

The quorum for the annual meeting is 20 beneficiaries.

No business may be transacted at the annual meeting if a quorum is not present.

If no auditor is appointed in accordance with section 101(1) or a casual vacancy in the office of auditor is not filled within 1 month after the vacancy occurring in accordance with section 101(2), the Auditor-General must be the auditor of a customer trust or community trust.

The trustees of a customer trust or community trust must, within 5 working days after subsection (1) becoming applicable, give written notice to the Auditor-General of this fact.

If the Auditor-General becomes the auditor of a trust, the sections and Parts of the Public Audit Act 2001 listed in section 19 of that Act apply to the trust, until an auditor is appointed at an annual meeting of beneficiaries, as if references in those sections to a public entity were references to the trust and with any other necessary modifications.

The trustees of a customer trust and the trustees of a community trust must comply with sections 99 to 103, rather than section 46A of the Energy Companies Act 1992.

Every trustee commits an offence and is liable on conviction to a fine not exceeding $200,000 who, without lawful justification or excuse, knowingly acts in breach of, or fails to comply in any respect with, any provision of sections 99 to 103.

Except as provided in subsection (1), nothing in sections 99 to 103 limits any other enactment or rule of law concerning the maintenance and auditing of the financial statements of a trust.

For the purpose of enforcing sections 99 to 103 and any regulations made under section 114, the Authority’s monitoring, investigation, and enforcement powers in Part 2 apply to trustees of customer trusts and trustees of consumer trusts as if those trustees were industry participants.

This section applies to a distributor who, in relation to any place,—

A distributor to whom this section applies must, in relation to the place referred to in subsection (1), either—

The obligation in subsection (2) is subject to anything to the contrary in the Electricity Act 1992, any regulations made under section 169 of that Act, or any written agreement, entered into before this section comes into force, between the distributor and a landowner who is, or would be but for the agreement, affected by the obligation.

A distributor who is obliged under subsection (2) to supply line function services or electricity from an alternative source to a place commits an offence, and is liable on conviction to a fine not exceeding $10,000 and to a further fine not exceeding $1,000 for every day or part of a day during which the offence continues, if the distributor,—

In this section and sections 106 to 108,—

A distributor’s obligation under section 105(2) comes to an end with respect to a place if—

The obligation in section 105(2) is suspended, in relation to any place, in any of the following circumstances:

If the supply of line function services or electricity from an alternative source ceases in any of the circumstances described in subsection (2), the cessation may continue only for as long as the reason for cessation continues.

A distributor to whom section 105 applies, and who proposes to comply with section 105(2) by supplying a place with electricity from an alternative source, must give at least 6 months’ notice of the proposal to—

The notice to each affected consumer and any landowner must—

If the distributor is unable to locate a landowner of a place after taking reasonable steps to do so, the distributor is not required to give notice to the landowner under subsection (1).

The notice to the public must be by way of a notice—

The distributor must have regard to any comments received in response to the proposal.

Any obligations under the following that apply to retailers apply to a distributor in connection with any supply by the distributor of electricity from an alternative source, if that supply is in fulfilment of the supply obligation in section 105(2):

However, regulations made under section 113 about low fixed charge tariff options do not apply to a distributor in respect of consumers to whom the distributor supplies electricity from an alternative source.

If a distributor, during a trial or transition in the course of complying with section 105(2), both supplies a place with line function services that connect the place to a network and, at the same time, supplies the place with electricity from an alternative source, the distributor is not to be treated as thereby being involved in generation or retailing for the purposes of Part 3.

For the purposes of subpart 9 of Part 4 of the Commerce Act 1986, the Commerce Commission must treat the costs of providing electricity to a place from an alternative source, and any cost arising in respect of a place from an agreement under section 106(1)(a), as if the costs were the cost of providing electricity lines services (as defined in section 54C of the Commerce Act 1986).

The Governor-General may, by Order in Council made on the recommendation of the Minister, given after consulting the Authority, make regulations for the following purposes:

The Governor-General may, by Order in Council made on the recommendation of the Minister responsible for Part 2, given after receiving a recommendation from the Authority, make regulations that do either or both of the following:

Regulations made under subsection (1)(b) may exempt a class of industry participants from all or specified provisions of the Code.

The Governor-General may, by Order in Council made on the recommendation of the Minister of Consumer Affairs, make regulations identifying a class of industry participants that is exempt from the obligation in section 96(1) to be a member of a dispute resolution scheme.

The Governor-General may, by Order in Council made on the recommendation of the Minister responsible for Part 2, given after consulting the Authority, make regulations for all or any of the following purposes:

The requirement in subsection (1) to consult with the Authority does not apply to the first regulations made under this section if—

The Governor-General may, by Order in Council made on the recommendation of the Minister given after the consultation referred to in subsection (4), make regulations for the purpose of—

Regulations made under subsection (1) may, without limitation, do any of the following:

Regulations made under this section may include any other provisions necessary or desirable for monitoring and enforcing compliance with the regulations.

Before recommending an Order in Council under this section, the Minister must—

In this section,—

If any material is incorporated by reference in the regulations, Schedule 1 applies.

The Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004 are deemed to have been made under this section.

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the purpose of promoting the accountability of customer trusts and community trusts.

Regulations made under this section may, without limitation, do any of the following:

Regulations made under this section may include provisions necessary or desirable for monitoring and enforcing compliance with the regulations, including making it an offence, punishable by a fine not exceeding $10,000, to fail to comply with a requirement of the regulations.

If any material is incorporated by reference in the regulations, Schedule 1 applies.

The Governor-General may from time to time, by Order in Council, make regulations for all or any of the following purposes:

In this subpart, unless the context otherwise requires,—

The purpose of this section is to improve competition in both wholesale and retail electricity markets, and make improvements in security of supply, by adjusting the configuration of assets held by State generators.

The shareholding Ministers may, at any time before 1 November 2011, give to the board of all or any of the State generators 1 or more of the following directions:

The shareholding Ministers—

Every direction given under section 117 must be in writing.

The Minister for State Owned Enterprises must—

However, the Minister for State Owned Enterprises may withhold from disclosure under subsection (3) any part of a direction that he or she considers is commercially sensitive, and in that case must substitute a note of explanation for the parts withheld.

The shareholding Ministers may give a direction under section 117 despite anything to the contrary in sections 4 to 7 of the State-Owned Enterprises Act 1986 or in the Companies Act 1993 or any other Act or rule of law.

The board must comply with a direction given to it under section 117 despite anything to the contrary in the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law.

Neither the Crown nor any shareholding Minister is in breach of, or liable to any person under, sections 4 to 7 of the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law by reason of giving a direction under section 117 or advice under section 118.

No State generator, and no director, employee, or contractor of, or adviser to, a State generator, is in breach of, or liable to any person under, the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law by reason of any act or omission reasonably believed by the person to be necessary or desirable—

In subsections (3) and (4), the references to any other Act do not extend to the Commerce Act 1986 (but section 130 provides specific authorisations under that Act).

To avoid doubt, subsections (3) and (4) do not give any protection from liability for breach of, or default under, any agreement.

No director, employee, or contractor of, or adviser to, a State generator is in breach of, or default under, any agreement, or in breach of confidence, or in the position of having committed any tort (including negligence) or other civil wrong, by reason of any act or omission referred to in subsection (4).

The purposes of sections 121 to 126 are—

Meridian and Genesis must, in consultation with the consent authority, identify, and agree (if possible) any recommended changes to the conditions of the permits that are, in the opinion of Meridian and Genesis, necessary to meet the purposes set out in section 120.

The Minister, by notice to Meridian and Genesis, may specify a date by which the recommended changes must be provided to the Minister.

Meridian and Genesis may provide separate or joint recommendations.

Meridian and Genesis must provide the recommended changes to the Minister by the date specified by the Minister.

The Minister must, as soon as practicable after receiving any recommended changes, notify the consent authority of the recommended changes, and specify a date by which the consent authority may make representations to the Minister about whether those changes would maintain the effects on the environment that are achieved by the current conditions of the permits.

The Minister may, after consultation with the Minister for the Environment, make an order changing 1 or more of the conditions of a permit.

The Minister may make an order only if the Minister is satisfied that—

An order under this section—

The Minister must present a copy of the order to the House of Representatives in accordance with section 4 of the Regulations (Disallowance) Act 1989.

This section and section 124 apply to the following (the existing agreements):

No existing agreement is terminated only because Meridian no longer controls the entire Waitaki Power Scheme.

However, a party to an existing agreement (other than Meridian or Genesis) may, by notice in writing to the Minister, Meridian, and Genesis, terminate the party’s involvement in the agreement in accordance with section 124(2)(c) or (9).

The shareholding Ministers may include, in a direction given under section 117(2)(b), 1 or more of the following:

A third party that has rights or obligations under an existing agreement must choose, by the date specified under subsection (1)(c),—

If a third party chooses to enter into any replacement contract that is offered, the existing agreement ceases to have effect to the extent that it is replaced by the replacement contract.

If a replacement contract has not been entered into by the date specified in a direction under subsection (1)(c), the shareholding Ministers may give to the boards of Meridian and Genesis a further direction specifying—

If a direction is given under subsection (4)(a) in respect of an existing agreement, Meridian and the third parties to the agreement remain subject to the agreement as if this Act had not been passed.

If a direction is given under subsection (4)(b) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the rights and obligations of Genesis on the date specified in the direction.

If a direction is given under subsection (4)(c) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the joint and several rights and obligations of Meridian and Genesis on the date specified in the direction.

If a direction is given under subsection (4)(d) in respect of an existing agreement, on the date specified in the direction the rights and obligations of Meridian under the agreement remain with Meridian except to the extent that any of those rights and obligations are transferred to Genesis.

However, a party to an existing agreement in respect of which a direction is given under subsection (4) (other than Meridian or Genesis) may terminate the party’s involvement in the agreement, by notice in writing to the Minister, Meridian, and Genesis given by the further date specified under subsection (1)(c).

In this section, rights and obligations includes entitlements and liabilities.

Sections 118 and 119 apply to any direction given under section 124(4), but nothing in this section requires the terms and conditions of any agreement to be disclosed under section 118(3).

This section and section 124 do not limit section 117.

Sections 88 to 121 and 127 of the Resource Management Act 1991 do not apply in respect of any matters under sections 121 to 125.

There are no other appeal rights in respect of any matters under sections 121 to 125.

To avoid doubt, the Waitaki Catchment Water Allocation Regional Plan is not changed by this Act, and its effect on permits that are transferred or changed under this subpart is not affected by the transfer or change.

The Minister may terminate the Whirinaki agreement, at any time before its termination date, by notice in writing to the Authority.

The Minister must publicise the termination as soon as practicable.

Until the Whirinaki agreement terminates, the Whirinaki agreement continues as if—

In this Part, the Whirinaki agreement means the reserve generation capacity agreement entered into between the Electricity Commission and Her Majesty the Queen in right of New Zealand.

Every industry participant (or prescribed class of industry participant) must pay to the Authority on behalf of the Crown a levy prescribed by regulations.

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for the levy.

The levy must be prescribed on the basis that the following costs should be met fully out of the levy:

The levy may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recovered (along with any financing charge) over any period of up to 5 years.

The regulations may—