422 NEW ZEALAND GAZETTE No. 21

Subject to any terms and conditions imposed upon M-co as noted below, the Commission hereby grants M-co an exemption
from the requirement to comply with the following Electricity Governance Rules:

1. Rule 3.25 of Section II of Part G (consult on backup procedures).
2. Rule 7.4 of Section II of Part G (consult on backup procedures).
3. Rule 7.5 of Section III of Part G (consult on backup procedures).
4. Rule 10.7 of Section III of Part G (consult on backup procedures).
5. Rule 2.11 of Section IV of Part G (consult on backup procedures).
6. Rule 3.36 of Section V of Part G (consult on backup procedures).
7. Rule 5.11 of Section V of Part G (consult on backup procedures).

Exemption Notice to Appear in the New Zealand Gazette

Regulation 194 (2) requires that an exemption, and the Commission’s reasons for granting it, must be notified in the
New Zealand Gazette as soon as practicable after being granted. Accordingly, the exemption the subject of this Exemption
Notice and the Commission’s reasons for granting it, shall be notified in the New Zealand Gazette on 26 February 2004.

Terms and Conditions of Grant of Exemption

Pursuant to Regulation 194 (1), the Commission may, in its discretion and upon the terms and conditions (if any) that it thinks
fit, grant an exemption. In respect of the exemption contained within this Exemption Notice the Commission imposes the
following terms and conditions:

1. The exemption expires on 15 March 2004.
2. M-co is required to consult on the backup procedures for each of the rules referred to above with all relevant participants
   M-co is aware of as at 9 February 2004.\n
   Board’s Reasons for Granting the Exemption Contained in this Notice

Pursuant to the requirements upon the Commission contained within Regulation 194 (3), the Commission has, before granting
the exemption contained within this Exemption Notice:

(a) had regard to section 172N of the Electricity Act 1992 (“the Act”);
(b) subject to Regulation 194 (4), publicised its intention to grant the exemption; and
(c) had regard to any views that have been made known to the Commission within the time specified by the Commission.

The reasons for granting the exemption are as follows:

(a) M-co, in its role as market administrator, is obliged to consult on backup procedures with relevant participants. M-co
cannot know who participants are unless they register. Participants are continuing to register at the same time as
M-co are consulting on the backup procedures.

(b) It would be unreasonable for the Commission to expect M-co to consult with unregistered participants on backup
procedures.

(c) The issues affecting M-co are due to the transition from NZEM to the EGRs, and can be addressed through granting an
exemption for a short period.

(d) The backup procedures that M-co will use are virtually identical to those used in NZEM.

(e) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.

(f) The Commission therefore considers it in the best interests of the market to grant the exemption.

Date Upon Which the Exemption Becomes Effective

Pursuant to Regulation 195, the date upon which the exemption contained in this Exemption Notice takes effect, being a date
which is not earlier than the date of the New Zealand Gazette notice in respect of the exemption, is 26 February 2004.

For and on behalf of the Electricity Governance Board:
ROY HEMMINGWAY, Chairman.
au1289

Exemption Notice – Application #2 – Energy Clearing House Limited

Pursuant to Regulation 194 of the Electricity Governance Regulations and Rules 2003 (“the EGRs”), this Exemption Notice is
issued by the Electricity Commission, formally constituted as the Electricity Governance Board (“the Commission”), in favour
of Energy Clearing House Limited (“ECHL”).

Subject to the terms and conditions imposed upon ECHL as noted below, the Commission hereby grants ECHL an exemption
from the requirement to comply with the following Electricity Governance Rule:

1. All rules in Part D (metering arrangements).

Exemption Notice to Appear in the New Zealand Gazette

Regulation 194 (2) requires that an exemption, and the Commission’s reasons for granting it, must be notified in the
New Zealand Gazette as soon as practicable after being granted. Accordingly, the exemption the subject of this Exemption
Notice and the Commission’s reasons for granting it, shall be notified in the New Zealand Gazette on 26 February 2004.

Terms and Conditions of Grant of Exemption

Pursuant to Regulation 194 (1), the Commission may, in its discretion and upon the terms and conditions (if any) that it thinks
fit, grant an exemption. In respect of the exemption contained within this Exemption Notice the Commission imposes the
following terms and conditions:

1. The exemption only applies to the extent that ECHL has retailer obligations as a result of ECHL discharging its
   obligations in ECHL’s role as clearing manager under the EGRs.