New Zealand Gazette – 2004 – No. 139

Page 3448

✨ Government Policy Statement on Electricity



3448 NEW ZEALAND GAZETTE, No. 139 29 OCTOBER 2004

The Government expects the Commission to take into account and contribute as appropriate to the Government’s wider policy objectives.

The Government also expects the Commission to provide early warning if it believes there is any material risk that current settings for electricity and for other policy areas are unlikely to produce sufficient investment, particularly in generation and the national grid.

This Government Policy Statement sets out the objectives and outcomes the Government wants the Commission to give effect to. It is made pursuant to s 172ZK of the Electricity Act 1992 as amended by the Electricity Amendment Act 2004(^1)

Other related documents are the Sustainable Development Programme of Action(^2), the National Energy Efficiency and Conservation Strategy(^3), the Climate Change Work Programme(^4) and the Government Policy Statement on Gas(^5).

Hon Pete Hodgson
Minister of Energy

Policy objectives for the Electricity Commission

1 The Government has amended the Electricity Act 1992 to set the following principal objectives for the Electricity Commission:

  • ensure that electricity is produced and delivered to all classes of consumers in an efficient, fair, reliable, and environmentally sustainable manner and
  • promote and facilitate the efficient use of electricity.

2 Consistent with those principal objectives, the Commission is required by the Act to seek to achieve the following specific outcomes:

a energy and other resources are used efficiently
b risks (including price risks) relating to security of supply are properly and efficiently managed
c barriers to competition in electricity are minimised for the long-term benefit of end-users
d incentives for investment in generation, transmission, lines, energy efficiency, and demand-side management are maintained or enhanced and do not discriminate between public and private investment
e the full costs of producing and transporting each additional unit of electricity are signalled
f delivered electricity costs and prices are subject to sustained downward pressure
g the electricity sector contributes to achieving the Government’s climate change objectives by minimising unnecessary hydro spill, efficiently managing transmission and distribution losses and constraints, promoting demand-side management and energy efficiency, and removing barriers to investment in new generation technologies, renewables and distributed generation.

Commission’s powers and approach

3 The Commission should work with stakeholders including consumers, market participants and Government agencies to achieve its objectives.

4 In particular, whenever possible, the Commission should use its powers of persuasion and promotion, and provision of information and model arrangements to achieve its objectives rather than recommending regulations and rules.

5 However, the Government recognises that clear and effective regulations and rules are required in many key parts of the market. Accordingly, the Commission has powers under the Electricity

(^1) For the avoidance of doubt, the Government Policy Statement does not include the Foreword.
(^2) http://www.mfe.govt.nz/publications/sus-dev/sus-dev-programme-of-action-jan03.html
(^3) http://www.eeca.govt.nz/default2.asp
(^4) http://www.climatechange.govt.nz/sp/consultation/confirmed-policy.htm
(^5) http://www.med.govt.nz/ers/gas



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 139


Gazette.govt.nz — PDF NZ Gazette 2004, No 139




✨ LLM interpretation of page content

🏛️ Government Policy Statement on Electricity Governance (continued from previous page)

🏛️ Governance & Central Administration
1 October 2004
Electricity, Governance, Policy, Sustainability, Economic Growth
  • Hon Pete Hodgson, Minister of Energy