New Zealand Gazette – 2008 – No. 92

Page 2470

✨ Electricity Commission Guidelines

2470 NEW ZEALAND GAZETTE, No. 92 4 JUNE 2008

The Commission should work with stakeholders including consumers, market participants and Government agencies to achieve its objectives.
In particular, whenever possible, the Commission should use its powers of persuasion and promotion, and provision of information, guidelines and model arrangements, to achieve its objectives rather than recommending regulations and rules. The Commission should monitor compliance with these guidelines and model arrangements and recommend regulations or rules if voluntary arrangements prove unsatisfactory.
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 Act 1992 to make recommendations to the Minister of Energy concerning new or amended regulations and rules. The Commission should be prepared to use these powers fully where required to achieve the Government’s policy objectives.

Where the Commission proposes guidelines or model arrangements, new regulations or rules, or substantial changes to existing regulations or rules, it should follow good processes. This includes identification of the main options, assessment of costs and benefits, and consultation with and exposure of its analyses to affected parties. When recommending regulations or rules it is required by the Act to satisfy itself that other options (such as information, education and voluntary arrangements) are unlikely to satisfactorily achieve the Government’s objectives.
The Government expects the Commission to maintain a protocol on its consultation processes.
The Commission should actively consult with the Ministry of Consumer Affairs when pursuing outcomes which directly impact on small consumers.

The Commission should make extensive use of advisory groups wherever possible to develop industry arrangements and make recommendations concerning regulations and rules. These advisory groups should have the necessary expertise and be appropriately representative of affected parties, including consumers. The Commission should consider providing limited funding assistance for consumer representatives where it considers that this may improve the quality of decision-making.

The Commission should keep in mind the importance of encouraging innovation. It should therefore consider, when deciding how best to deliver on its objectives, any trade-offs between certainty and clarity on the one hand and encouraging and allowing scope for innovation on the other.

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