✨ Government Policy on Electricity Regulation
3628 NEW ZEALAND GAZETTE, No. 123 30 OCTOBER 2006
(including any decisions made by the Electricity Commission under
those regulations and rules), and
ii
require the Electricity Commission to advise the Commerce
Commission of any regulation, rule or decision made under the
Electricity Act 1992 which is likely to affect the powers and duties of the
Commerce Commission under Part 4A of the Commerce Act 1986.
107
The Government notes that the two Commissions have developed and
published a Memorandum of Understanding on their respective roles.
107A The Government’s economic policy is that investment and other costs in
relation to approved grid upgrade plans should be recoverable by Transpower.
The Government also wishes to ensure that interested parties have certainty
and clarity on how the two Commissions will operationalise the coordination of
their respective roles particularly regarding transmission. Accordingly the
Government requests the Commerce Commission and the Electricity
Commission to review their Memorandum of Understanding to specifically
address the following matters in relation to transmission:
i the methodology for determining how each relevant expenditure
component in relation to approved grid upgrade plans will be treated
over time under the Part 4A thresholds;
ii how price setting under a threshold as regulated by the Commerce
Commission interacts operationally with the pricing methodology
approved by the Electricity Commission;
iii how issues relating to valuation methodologies, pricing and pricing
methodologies, quality and information disclosure will be coordinated
and harmonised where possible between the two Commissions.
107AA The Government requests that the two Commissions complete this revision of
the Memorandum of Understanding by the end of April 2007.
108
The Commerce Act 1986 has been amended to allow responsibility for Part 4A
to be transferred from the Commerce Commission to the Electricity
Commission by Order in Council should there appear to be benefits in doing
so. This transfer (after due process and consultation) may take place at any
time with regard to Transpower, but may not take place before 1 April 2009 for
other lines businesses.
Distributed generation
109
Distributed generation is generation which is connected to local distribution
lines rather than the transmission grid. It is expected to play an increasingly
important role in meeting electricity demand as the cost of smaller-scale and
new renewable technologies continues to decline. Distributed generation can
improve security of supply by creating diversity of fuel types, locations and
technologies, and, where appropriately sited, helps reduce the need for
transmission and distribution upgrades. Accordingly, it is important that there
are no unnecessary barriers to its development.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 123
Gazette.govt.nz —
NZ Gazette 2006, No 123
✨ LLM interpretation of page content
🏛️
Interrelationship between Commerce Commission and Electricity Commission
(continued from previous page)
🏛️ Governance & Central AdministrationCommerce Commission, Electricity Commission, Regulation, Coordination, Jurisdiction, Transmission, Investment, Pricing, Memorandum of Understanding