New Zealand Gazette – 2004 – No. 139

Page 3463

✨ Electricity Governance Policy



29 OCTOBER 2004 NEW ZEALAND GAZETTE, No. 139 3463

Accountability requirements

121 The accountability and reporting requirements for the Electricity Commission are set out in Part 15 subpart 2 of the Electricity Act 1992 and Part V of the Public Finance Act 1989.

122 The Government expects the Commission to prioritise work on the objectives and outcomes set out in this Government Policy Statement. The Government recognises that the Commission has a substantial task in front of it, and that it will take time to develop its capabilities and expertise. In terms of the Government’s high level expectations, priority should be given to:

  • Managing security of supply and implementing the reserve energy mechanism
  • Working with Transpower and grid users to facilitate priority investment in the grid
  • Promoting efficient use of electricity
  • Improving hedge market transparency and liquidity and demand-side participation.

123 In addition to the reporting requirements set out in legislation, the Commission should report at least quarterly to the Minister of Energy on progress against the Government’s expectations in this Government Policy Statement.

Levy payments

124 The Government will seek an appropriation each year from Parliament to make payments to the Commission to enable it to perform its functions, powers and duties. These costs are to be recovered by way of levy from every industry participant (or class of industry participants) prescribed by regulations under section 172ZC of the Electricity Act 1992.

125 The Act requires the Commission, in preparing and recommending to the Minister its proposed appropriation, to consult with affected parties, and to advise the Government of the outcome of those consultations.

Status of existing Government Policy and Section 26 Statements

126 For the avoidance of doubt, all other previous Government Policy Statements on electricity market issues are supplanted by this Policy Statement.

127 The existing statement to the Commerce Commission under section 26 of the Commerce Act 1986 “Further Development of New Zealand’s Electricity Industry” of February 2002 will be withdrawn.

128 A new section 26 Statement will be issued advising the Commerce Commission that this Government Policy Statement is a statement of the Government’s economic policies within the meaning of that section.

Hon Pete Hodgson
Minister of Energy

Appendix One

Financial Transmission Rights

Introduction

1 Under marginal cost nodal pricing, different locations experience different prices caused by transmission losses and constraints.

2 Financial transmission rights (FTRs) should be introduced to assist in the management of locational price risk resulting from transmission losses and constraints and to improve economic



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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, Consumer Protection, Efficiency, Wholesale Market, Conveyance, End-use, Security of Supply, EECA, Electricity Commission, Reserve Energy, Levy, Regulations, Review, Co-ordination, Outages, System Operation, Hedge Market, Financial Transmission Rights, Transmission, Transmission Services, Grid Reliability, Grid Rules, Transpower, Grid Reliability Standards, Transmission Agreements, Transmission Network, Grid Upgrade Plans, Power Quality Standards, Reliability Standards, Grid Assets, Connection Terms, Pricing Methodologies, Revenue Recovery, Distributed Generation, Access to Lines, Surplus Generation, Purchase Terms, Retail competition, Retailers, Service quality, Generation costs, Competition, Market entry, Tariff schedules, Contractual arrangements, Distribution line losses, Electricity meters, Retail services, Market areas, Switching suppliers, Hedges, Vertically integrated generator/retailers
  • Hon Pete Hodgson, Minister of Energy