Electricity Industry Bill

  • enacted

Hon Gerry Brownlee

Electricity Industry Bill

Government Bill


As reported from the committee of the whole House



1 Title

2 Commencement

3 Act binds the Crown

Part 1
Preliminary provisions

4 Purpose

5 Interpretation

8 Extended meaning of breach

Part 2
Electricity industry governance

Subpart 1Who does what

Industry participants

9 Industry participants

10 Transpower is system operator

11 Industry participants to register and comply with Code

12 Exemption from obligation to register

13 Exemption from obligation to comply with Code

Electricity Authority

14 Authority established

15 Membership of Authority

16 Independence of members of Authority

17 Objective of Authority

18 Functions of Authority

19 Statements of government policy

20 Reviews on request by Minister

Security and Reliability Council, and other advisory groups

22 Charter about advisory groups

23 Security and Reliability Council

24 Other advisory groups

25 Application of Crown Entities Act 2004

Rulings Panel

26 Continuation of Rulings Panel

27 Membership of Rulings Panel

28 Function of Rulings Panel

29 Funding of Rulings Panel and remuneration of members

Subpart 2Registration

30 Register of industry participants

31 Transfer of old information to register

32 Registration and requirement to update information

33 Ceasing to be registered

34 Offences relating to registration

Subpart 3Electricity Industry Participation Code

Content and status of Code

35 Content of Code

36 Status of Code

Making and amending Code

37 Content of initial Code

38 Certification of draft Code

39 Code comes into force

40 Making Code accessible

41 Authority amends Code

42 Consultation on proposed amendments

43 Urgent amendments to Code

44 Authority to publish consultation charter

Specific new matters in Code

45 Specific new matters to be in Code

46 Minister may amend Code to include new matters

Other specific content

47 Transmission agreements

Subpart 4Monitoring and enforcement

Authority's powers and procedures

47A Purposes of exercise of Authority's monitoring, investigation, and enforcement powers

47B Authority's monitoring, investigation, and enforcement powers

47C Power to search

47D Privileges protected

47E Authority may suspend trading in case of insolvency

Code enforcement

48 Complaints, appeals, and disputes

49 Interim injunctions

54 Limitation periods for breaches of Code

55 Powers and procedures of Rulings Panel

56 Remedial orders for breach of Code

57 Restrictions on remedies

58 Pecuniary penalty orders

59 Offence to breach certain orders of Rulings Panel

60 Suspension and termination for breach of certain Rulings Panel orders

61 Effect of suspension and termination orders

62 Offences relating to suspension and termination orders

62A Rulings Panel powers relating to appeals

62B Rulings Panel powers relating to disputes

62A Powers in relation to appeals and disputes

63 Orders generally


64 Appeal on ground of lack of jurisdiction

65 Appeal on question of law

66 Appeal against certain orders of Rulings Panel

67 How and when appeals made

68 Determination of appeals

69 High Court may refer appeals back for reconsideration

70 Provisions pending determination of appeal

71 High Court may order proceedings be heard in private

72 Appeal to Court of Appeal in certain cases

Part 3
Separation of distribution from certain generation and retailing

Subpart 1Separation of distribution from certain generation and retailing

Purpose and outline of Part

74 Purpose and outline of this Part

Interpretation of Part

75 Interpretation in this Part

76 Meaning of involved in

Ownership separation

77 Ownership separation

Corporate separation and arm's-length rules

78 Corporate separation and arm's-length rules applying to distributors and connected generators and connected retailers

Other rules

79 Use-of-systems agreements

80 Person involved in distributor must not pay for transfer of retail customers to connected retailers

81 No discrimination when paying rebates or dividends

Subpart 2Enforcement and general provisions

Enforcement and penalties for this Part

82 Pecuniary penalties

83 Injunctions

84 Actions for damages

85 Other powers to give directions, reopen agreements

86 Miscellaneous provisions relating to civil proceedings under this Part

87 Application of Commerce Act 1986 provisions

88 Additional proceedings

Territorial application of this Part

89 Application to persons outside New Zealand

Disclosure and reporting to Authority

90 Disclosure of information to Authority

91 Directors must report compliance with arm’s-length rules


92 Exemptions

Application of other Acts

93 Application of Commerce Act 1986

94 Not interconnected under Commerce Act 1986

95 Illegal Contracts Act 1970

96 Substance matters, not form

Part 4
Industry participants and consumers

Subpart 1Dispute resolution

97 Complaints about Transpower, distributors, and retailers

98 Membership of dispute resolution scheme

99 Compliance with rules and binding settlements

100 Offence to fail to comply with District Court order

Subpart 2Financial statements of customer and community trusts

101 Customer and community trusts must prepare and submit for audit financial statements

102 Publication of audited financial statements

103 Auditor of trusts

104 Procedures for annual meeting to appoint auditor

105 Auditor-General to be auditor if no other auditor appointed

106 Offences, enforcement, and application of sections 101 to 105

Subpart 3Continuance of supply

107 Continuance of distributors' supply obligation

108 Cessation and suspension of supply obligation

109 Proposal to supply electricity from alternative source

110 Application of other enactments

Part 5

Subpart 1Regulations

116 Regulations identifying industry service providers as industry participants

116 Regulations identifying industry participants and market operation service provider roles

117 Class exemptions relating to registration and Code compliance

118 Class exemptions relating to membership of dispute resolution scheme

119 Regulations relating to monitoring, investigating, and enforcing Code

120 Regulations about tariffs and other consumer issues

121 Regulations promoting accountability in customer trusts and community trusts

122 General regulation-making power

Subpart 2State-owned enterprise asset reconfiguration and miscellaneous matters

State-owned enterprise asset reconfiguration: General provisions

123 Interpretation for subpart

124 Directions that may be given by shareholding Ministers

124AA Process for giving directions

124AB Legal effect of directions

Asset reconfiguration provisions in respect of Waitaki Power Scheme

124A Purposes of sections 124B to 124G

124B Process for Meridian and Genesis to recommend changes to permit conditions in respect of Waitaki Power Scheme

124C Minister may change permit conditions by order

124D Existing agreements with other parties in respect of Waitaki Power Scheme

124E Reconfiguration of existing agreements

124F Other provisions about directions

124G Interface with Resource Management Act 1991

Asset reconfiguration provision in respect of Whirinaki

125 Obligation of Authority relating to Whirinaki

125 Whirinaki

Levy of industry participants

126 Levies

127 Consultation about request for appropriation

Specific authorisations for purposes of Commerce Act 1986

128 Specific authorisations for purposes of Commerce Act 1986

Distributors' and grid owners' exemption from liability

128A Distributors and grid owners exempt from liability for certain outages

Subpart 3Transitional and consequential provisions

129 Interpretation

Dissolution of Electricity Commission

130 Electricity Commission dissolved

131 Consequences of dissolution

132 References in documents to Electricity Commission

132A References to reserve generation capacity in resource consents

133 Transferred employees

134 Government Superannuation Fund

135 Complaints, investigations, etc, transfer to Authority

135A References to Electricity Governance Rules 2003 and certain regulations

Rulings Panel

136 Members of Rulings Panel

137 Work of Rulings Panel

Commerce Commission

138 Investigations relating to separation of distribution from generation and retailing

139 Exemptions granted under Electricity Industry Reform Act 1998

139A Levies must provide for Commerce Commission preparation costs to be recovered

Subpart 4Amendments to other enactments

Amendments to Commerce Act 1986

140 Amendments to Commerce Act 1986

141 Interpretation

142 Matters covered by input methodologies

142A Commission's costs in setting customised price-quality path

143 Interpretation for subpart

144 Meaning of electricity lines services

145 Definition of consumer-owned

146 How exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers

147 Administrative settlements with Transpower made before 1 April 2009

147A Proposals for customised price-quality paths

148 New heading and sections 54R and 54S substituted

Transpower grid upgrade plans and capital expenditure proposals

149 New section 54V substituted

Interface with Electricity Industry Act 2009

Amendments to Energy (Fuels, Levies, and References) Act 1989

151 Amendments to Energy (Fuels, Levies, and References) Act 1989

152 Part 2 repealed

153 Purpose of levies

Amendments to Electricity Act 1992

154 Amendments to Electricity Act 1992

154A Purposes

155 Interpretation

156 New section 43A inserted

157 Consequential amendments and repeal of spent provisions

Repeal of Electricity Industry Reform Act 1998

158 Repeal of Electricity Industry Reform Act 1998

Amendments to other enactments

159 Amendments to other enactments

Schedule 1
Material incorporated by reference

Schedule 2
When person is involved in distributor, generator, or retailer for purposes of Part 3

Schedule 3
Arm's-length rules

Schedule 4
Dispute resolution scheme

Schedule 4A
Existing agreements in respect of Waitaki Power Scheme

Schedule 5
Amendments to other enactments

Legislative history

The Parliament of New Zealand enacts as follows: