NEW ZEALAND GAZETTE

8 JULY

Authorities and Other Agencies of State Notices

Commerce Commission

Electricity Industry Reform Act 1998

Notice of Exemption—Fletcher Challenge Group

The commission, pursuant to section 81 of the Electricity Industry Reform Act 1998 (“the EIR Act”), exempts Fletcher Challenge Group from the application of section 17 of the EIR Act in relation to its current involvements in electricity supply businesses and electricity lines businesses as described in an application to the commission dated 22 June 1999.

The following entities are included in the group, and therefore, this exemption:

• Fletcher Challenge Limited;
• Fletcher Challenge Power Limited;
• Tasman Pulp and Paper Company Limited;
• Fletcher Challenge Forests Limited;
• Fletcher Challenge Energy;
• Fletcher Property Limited;
• Fletcher Wood Panels Limited;
• Firth Industries Limited;
• Winstone Aggregates Limited; and
• Golden Bay Cement Limited.

The exemption is subject to the following terms and conditions:

(a) The exemption applies from 1 July 1999 until 5 p.m. on the day on which the commission gives its determination in the Fletcher Challenge Group’s application for permanent exemption.

(b) The Fletcher Challenge Group will not acquire any new involvements in lines businesses which involve the conveyance of electricity to third parties without notifying the commission.

(c) The Fletcher Challenge Group shall be in full compliance with section 17 of the EIR Act on expiration of this exemption.

The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.

The commission may vary or revoke this exemption at any time in accordance with section 81 (5) of the EIR Act.

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Notice of Exemption—Infrastructure & Utilities NZ Limited

The commission, pursuant to section 81 of the Electricity Industry Reform Act 1998, exempts Infrastructure & Utilities NZ Limited from the application of section 35 (1) (e) of that Act in relation to a prohibited cross-involvement in an electricity lines business, comprising the electricity distribution networks owned and operated by Powerco Limited and CentralPower Limited, and an electricity supply business owned and operated by TrustPower Limited.

The exemption is subject to the following terms and conditions:

(a) Infrastructure & Utilities NZ Limited will continue to use all reasonable endeavours to cease its involvement in CentralPower Limited and Powerco Limited by procuring the prompt sale of its shares in CentralPower Limited and its shares in Pukeaiki Holdings Limited and by becoming non-associated with the New Plymouth District Council in respect of Powerco Limited.

(b) During the period of the exemption, Infrastructure & Utilities NZ Limited will maintain an arms length relationship with both CentralPower Limited and Powerco Limited. Maintaining an arms length relationship means complying with the arms length rules defined in Schedule 1 of the Electricity Industry Reform Act 1998.

(c) Infrastructure & Utilities NZ Limited will not exercise any right it may have to promote or veto the appointment of any director in CentralPower Limited or Powerco Limited. In particular, in respect of Powerco Limited, it will allow New Plymouth District Council, the other major shareholder in Pukeaiki Holdings Limited, to make any determinations on directors that are required to be made under the Pukeaiki Holdings Limited structure. Similarly, it will allow Palmerston North City Council and the CentralPower Electricity Trust to make the same decisions with respect to the appointment of directors to CentralPower Limited under the shareholders’ deed in respect of CentralPower Limited.

(d) The exemption expires at midnight on 30 June 2000 unless any variation or earlier revocation in terms of section 81 (5) occurs.

(e) Infrastructure & Utilities NZ Limited will notify the commission 2 weeks in advance of additional involvement in any electricity lines or supply business, as defined in the Electricity Industry Reform Act 1998, which provides it on its own, or together with an associate, with an additional 0.5% of the assets, control rights or equity return rights of the electricity business.

(f) Infrastructure & Utilities NZ Limited will provide the commission with monthly written reports beginning 1 month after the date of this decision on the progress it is making to achieve compliance with the Electricity Industry Reform Act 1998.

The commission may vary or revoke this exemption in accordance with section 81 (5) of the Electricity Industry Reform Act 1998.

The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.

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Notice of Exemption—Alliant International New Zealand Limited and Utility Investments Limited

The commission, pursuant to section 81 of the Electricity Industry Reform Act 1998, exempts Alliant International New Zealand Limited and Utility Investments Limited from the application of section 35 (1) (e) of that Act in relation to a prohibited cross-involvements in an electricity lines business, comprising the electricity distribution network owned and operated by Powerco Limited, and an electricity supply business owned and operated by TrustPower Limited.