New Zealand Gazette – 1996 – No. 16

Page 535

✨ Energy Sector Reform Implementation

23 FEBRUARY NEW ZEALAND GAZETTE 535

as profitable and efficient as comparable businesses that are not owned by the Crown, as is required in Part I of the Act. The Corporation aims to increase its Shareholder value at a rate similar to large corporate businesses.

To achieve this, the Corporation intends to:

(a) undertake new investments which over their life are:

(i) aimed at yielding a return at least equal to the Corporation’s cost of capital, including a normal commercial profit;

(ii) the least-cost options available to the Corporation;

(iii) controlled in a manner which will maximise the commercial value of the enterprise, by ensuring that the addition of new equipment is related as closely as possible to actual and forecast market requirements;

and

(iv) considered to be in the best commercial interests of the Corporation.

(b) take account of the pricing policies which might be pursued by a market competitor in a comparable situation.

(c) adopt a commercial pricing strategy which includes giving clear market signals to customers, with appropriately flexible contractual options; . . .

APPENDIX 8

Timetable

This timetable sets out various tasks for implementing the measures set out in Part I of the Memorandum of Understanding, and the allocation of responsibility and target completion date for each task.

Target Date	Task	Responsibility
Early June 1995	Ministers commence process for Treaty consultations	Ministers
1 July 1995	Development Group formally established	Ministers
1 July 1995	Work commences on loan and funding agreements	Development Group, Treasury
1 July 1995	Work commences on sale and purchase agreement	Development Group, ECNZ
31 July 1995	EMCO and Trans Power start regular (2 monthly) briefings to Minister of Energy on pool development	EMCO, Trans Power
31 July 1995	Development Group progress report	Development Group
31 August 1995	Development Group progress report	Development Group
September 1995	Negotiation of draft loan and funding agreements completed	Development Group, Treasury
September 1995	Negotiation of draft sale and purchase agreement completed	Development Group, ECNZ, Officials
September 1995	Development Group provides certification to Government on public policy objectives	Development Group
30 September 1995	EMCO and Trans Power progress report on pool development	EMCO, Trans Power
Early October 1995	Final decision on reform package, taking into account results of Treaty consultation	Cabinet

If Cabinet decides to establish the new SOE

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VUW Te Waharoa — NZ Gazette 1996, No 16

NZLII — NZ Gazette 1996, No 16

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✨ LLM interpretation of page content

🏢 Contract Offer Mechanism (continued from previous page)

Domain🏢 State Enterprises & Insurance
KeywordsElectricity Contracts, Tender Process, ECNZ, Market Share, Pricing Guidelines

🏗️ Timetable for Implementing Energy Sector Reform

Domain🏗️ Infrastructure & Public Works
KeywordsEnergy Reform, Timetable, SOE Establishment, Treaty Consultations, Contract Tenders

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