New Zealand Gazette – 1996 – No. 172

Page 4537

✨ Ring-fencing Guidelines Certification



29 NOVEMBER
NEW ZEALAND GAZETTE
4537

ERNST & YOUNG

Majestic Centre
100 Willis Street
PO Box 490
Wellington
New Zealand

Telephone: (04) 499 4888
Fax: (04) 495 7400

30 October 1996

Electricity Corporation of New Zealand (ECNZ) Ring-fencing Guidelines

We have examined the attached guidelines for the financial policies necessary to implement ring-fencing of additional generation capacity provided by ECNZ. These guidelines have been prepared by ECNZ, and are required under the Memorandum of Understanding entered into by the Government and ECNZ in June 1995.

As the independent persons appointed to approve these ring-fencing guidelines we certify that the guidelines produced:

  • are consistent with the objectives and requirements set out in the Memorandum of Understanding (reference Appendix 5); and
  • in particular, ensure that competitive entry into the electricity market will be facilitated, as ECNZ’s ability to cross-subsidise the additional capacity will be sufficiently restricted under the application of the guidelines.

The independent certification was performed solely to ensure that the financial policies adopted for ring-fencing are consistent with the aims of the Memorandum of Understanding. This certification relates only to the financial guidelines and does not extend to any other information.

Yours sincerely
ERNST & YOUNG

Joanna Sofield
Partner

Jai Basrur
Partner

8

PUBLISHED BY AUTHORITY OF DEPARTMENT OF INTERNAL AFFAIRS:
GP PRINT LIMITED, WELLINGTON, NEW ZEALAND—1996

ISSN 0111-5650
Price $2.30 (inc. G.S.T.)
67980F—96A


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✨ LLM interpretation of page content

💰 Financial Guidelines for Cost Allocation and Pricing Methodologies (continued from previous page)

💰 Finance & Revenue
30 October 1996
Cost Allocation, Pricing Methodologies, Independent Auditor, Costing Model, Commercial Rate of Return, Annual Certification, Audit Compliance, Ring-Fencing Requirements, Electricity Corporation of New Zealand (ECNZ), Memorandum of Understanding, Competitive Entry, Cross-Subsidisation
  • Joanna Sofield, Partner, Ernst & Young
  • Jai Basrur, Partner, Ernst & Young

  • Joanna Sofield, Partner, Ernst & Young
  • Jai Basrur, Partner, Ernst & Young