Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021

2021/391

Coat of Arms of New Zealand

Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021

Cindy Kiro, Governor-General

Order in Council

At Wellington this 29th day of November 2021

Present:
Her Excellency the Governor-General in Council

These regulations are made under section 113(2) of the Electricity Industry Act 2010—

(a)

on the advice and with the consent of the Executive Council; and

(b)

on the recommendation of the Minister of Energy and Resources after—

(i)

consulting with the Minister of Commerce and Consumer Affairs in accordance with section 113(4)(a) of that Act; and

(ii)

obtaining and considering advice from the Electricity Authority in accordance with section 113(4)(b) of that Act.

Regulations

1 Title

These regulations are the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Amendment Regulations 2021.

2 Commencement

These regulations come into force on the date that is 28 days after the date of their notification in the Gazette.

4 New regulations 3A and 3B inserted

After regulation 3, insert:

3A Phasing out of low fixed charge tariff option

The provisions set out in the Schedule have effect according to their terms.

3B Revocation

These regulations are revoked on 1 April 2027.

5 Regulation 4 amended (Interpretation)

In regulation 4(1), replace the definition of home in the Lower South region with:

home in the Lower South region means a home that is supplied by any of the following grid exit points:

(a)

Arthur’s Pass:

(b)

Castle Hill:

(c)

Islington:

(d)

Bromley:

(e)

Kimberly:

(f)

Hororata:

(g)

any grid exit point that is south of any grid exit point referred to in paragraphs (a) to (f)

6 New Schedule inserted

After regulation 36, insert the Schedule set out in the Schedule of these regulations.

Schedule New Schedule inserted

r 6

Schedule Phasing out of low fixed charge tariff option

r 3A

Part 1 Amendments applying 1 April 2022 to end of 31 March 2023

1 Commencement of this Part

This Part comes into force on 1 April 2022.

2 Regulation 8 amended (Minimum requirements for low fixed charge tariff options)

(1)

In regulation 8(b), replace “30 cents” with “60 cents”.

(2)

In regulation 8(c), replace “30 cents” with “60 cents”.

3 Regulation 9 amended (Regulation of variable charges in low fixed charge tariff options)

In regulation 9, revoke the example.

4 Regulation 14 amended (Regulated distributor tariff option)

In regulation 14(1)(b), replace “15 cents” with “30 cents”.

5 Regulation 17 amended (Distributors providing wholesale pricing)

In regulation 17, replace “15 cents” with “30 cents”.

6 Regulation 18 amended (Prompt payment discounts)

In regulation 18,—

(a)

replace “30 cents” with “60 cents”; and

(b)

replace “15 cents” with “30 cents”.

7 Regulation 26 amended (Minister may grant exemptions)

Replace regulation 26(1) with:

(1)

The Minister may exempt an electricity retailer or electricity distributor, or an electricity retailer or electricity distributor in relation to a particular area or areas, from the application of any provision or provisions of these regulations if, in the opinion of the Minister, any of the criteria in regulations 27 to 29A are satisfied.

Part 2 Amendments applying 1 April 2023 to end of 31 March 2024

8 Commencement of this Part

This Part comes into force on 1 April 2023.

9 Regulation 8 amended (Minimum requirements for low fixed charge tariff options)

(1)

In regulation 8(b), replace “60 cents” with “90 cents”.

(2)

In regulation 8(c), replace “60 cents” with “90 cents”.

10 Regulation 14 amended (Regulated distributor tariff option)

In regulation 14(1)(b), replace “30 cents” with “45 cents”.

11 Regulation 17 amended (Distributors providing wholesale pricing)

In regulation 17, replace “30 cents” with “45 cents”.

12 Regulation 18 amended (Prompt payment discounts)

In regulation 18,—

(a)

replace “60 cents” with “90 cents”; and

(b)

replace “30 cents” with “45 cents”.

Part 3 Amendments applying 1 April 2024 to end of 31 March 2025

13 Commencement of this Part

This Part comes into force on 1 April 2024.

14 Regulation 8 amended (Minimum requirements for low fixed charge tariff options)

(1)

In regulation 8(b), replace “90 cents” with “120 cents”.

(2)

In regulation 8(c), replace “90 cents” with “120 cents”.

15 Regulation 14 amended (Regulated distributor tariff option)

In regulation 14(1)(b), replace “45 cents” with “60 cents”.

16 Regulation 17 amended (Distributors providing wholesale pricing)

In regulation 17, replace “45 cents” with “60 cents”.

17 Regulation 18 amended (Prompt payment discounts)

In regulation 18,—

(a)

replace “90 cents” with “120 cents”; and

(b)

replace “45 cents” with “60 cents”.

Part 4 Amendments applying 1 April 2025 to end of 31 March 2026

18 Commencement of this Part

This Part comes into force on 1 April 2025.

19 Regulation 8 amended (Minimum requirements for low fixed charge tariff options)

(1)

In regulation 8(b), replace “120 cents” with “150 cents”.

(2)

In regulation 8(c), replace “120 cents” with “150 cents”.

20 Regulation 14 amended (Regulated distributor tariff option)

In regulation 14(1)(b), replace “60 cents” with “75 cents”.

21 Regulation 17 amended (Distributors providing wholesale pricing)

In regulation 17, replace “60 cents” with “75 cents”.

22 Regulation 18 amended (Prompt payment discounts)

In regulation 18,—

(a)

replace “120 cents” with “150 cents”; and

(b)

replace “60 cents” with “75 cents”.

Part 5 Amendments applying 1 April 2026 to end of 31 March 2027

23 Commencement of this Part

This Part comes into force on 1 April 2026.

24 Regulation 8 amended (Minimum requirements for low fixed charge tariff options)

(1)

In regulation 8(b), replace “150 cents” with “180 cents”.

(2)

In regulation 8(c), replace “150 cents” with “180 cents”.

25 Regulation 12 revoked (Promotion of low fixed charge tariff options)

Revoke regulation 12.

26 Regulation 14 amended (Regulated distributor tariff option)

In regulation 14(1)(b), replace “75 cents” with “90 cents”.

27 Regulation 17 amended (Distributors providing wholesale pricing)

In regulation 17, replace “75 cents” with “90 cents”.

28 Regulation 18 amended (Prompt payment discounts)

In regulation 18,—

(a)

replace “150 cents” with “180 cents”; and

(b)

replace “75 cents” with “90 cents”.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on the date that is 28 days after the date of their notification in the Gazette, amend the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004 (the principal regulations). These regulations gradually, over a 5-year period, phase out the low fixed charge tariff option for domestic consumers.

Regulation 4 inserts new regulations 3A and 3B into the principal regulations.

New regulation 3A provides that the provisions of the new Schedule have effect according to their terms.

New regulation 3B revokes the principal regulations on 1 April 2027.

Regulation 5 amends regulation 4 of the principal regulations to update the definition of home in the Lower South region.

Regulation 6 inserts the new Schedule into the principal regulations, which provides for the phasing out of the low fixed charge tariff option over a 5-year period as follows:

  • on 1 April 2022, the fixed charge component for a domestic consumer on a low fixed charge tariff option increases from 30 cents to 60 cents per day, and the maximum electricity distributor fixed charge increases from 15 cents to 30 cents per day. In addition, an example in regulation 9 of the principal regulations is revoked, and regulation 26(1) is updated to remove a reference to a repealed Act:

  • on 1 April 2023, the fixed charge component for a domestic consumer on a low fixed charge tariff option increases from 60 cents to 90 cents per day, and the maximum electricity distributor fixed charge increases from 30 cents to 45 cents per day:

  • on 1 April 2024, the fixed charge component for a domestic consumer on a low fixed charge tariff option increases from 90 cents to 120 cents per day, and the maximum electricity distributor fixed charge increases from 45 cents to 60 cents per day:

  • on 1 April 2025, the fixed charge component for a domestic consumer on a low fixed charge tariff option increases from 120 cents to 150 cents per day, and the maximum electricity distributor fixed charge increases from 60 cents to 75 cents per day:

  • on 1 April 2026, the fixed charge component for a domestic consumer on a low fixed charge tariff option increases from 150 cents to 180 cents per day, and the maximum electricity distributor fixed charge increases from 75 cents to 90 cents per day. In addition, regulation 12 of the principal regulations is revoked.

Regulatory impact statement

The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 6 July 2021 to help inform the decisions taken by the Government relating to the contents of this instrument.

A copy of this regulatory impact statement can be found at—

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 2 December 2021.

These regulations are administered by the Ministry of Business, Innovation, and Employment.