New Zealand Gazette – 1996 – No. 172

Page 4530

✨ Financial Guidelines



4530 No. 172

NEW ZEALAND GAZETTE

FINANCIAL GUIDELINES FOR RING-FENCING OF ADDITIONAL GENERATING CAPACITY PROVIDED BY ECNZ

Introduction

  1. The Government of New Zealand and the Electricity Corporation of New Zealand Limited (ECNZ) have agreed on certain arrangements designed to reduce the dominance of ECNZ in New Zealand's electricity generation market. The arrangements are set out in the Memorandum of Understanding between the Government and ECNZ, dated 8 June 1995 (the MoU). That MoU was published in the New Zealand Gazette Supplement dated 22 February 1996.

  2. The arrangements covered in the MoU include the "ring-fencing" of any additional generating capacity provided by ECNZ. In particular, appendix 5 of the MoU requires that:

  3. Guidelines for the financial policies necessary to implement ring-fencing are to be specified in advance by ECNZ, and would be subject to approval by an independent person appointed by the Secretary of Commerce.

  4. These ring-fencing requirements and the need to specify guidelines for financial policies are also mentioned in ECNZ's Statement of Corporate Intent (SCI) dated 9 February 1996. The SCI was tabled in the House on 30 August 1996.

  5. This document, the "Financial Guidelines", covers the financial policies necessary to implement ring-fencing. In order to record all matters concerning ring-fencing in one place, this document also repeats relevant parts of appendix 5 of the MoU.

  6. Ernst & Young have been appointed by the Secretary of Commerce to approve the guidelines. Their certificate of approval is appended to this document.

1 Italicised sections of these guidelines are verbatim quotes from appendix 5 of the MoU.



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💰 Financial Guidelines for Ring Fencing of Additional Generating Capacity by ECNZ (continued from previous page)

💰 Finance & Revenue
Financial Guidelines, Ring Fencing, Generating Capacity, ECNZ