Interpretation Document

When performing its functions, the Authority must act consistently with its objectives (section 14 Crown Entities Act 2004).

On 31st December 2022 the Authority will have an additional statutory objective alongside its existing (main) objective.

Section 15 of the Electricity Industry Act 2010 (Act) is as follows*:

(1) The main objective of the Authority is to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers.

(2) The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.

(3) The additional objective applies only to the Authority’s activities in relation to the dealings of industry participants with domestic consumers and small business consumers.

Please note that the Interpretation of the Authority's statutory objective February 2011 has not been updated to reflect the Authority’s amended objectives or to account for the High Court’s decision in Manawa Energy.

*Amendments on 31st December shown in track change.

Consultation charter

The Act requires the Authority to develop, issue and make publicly available a consultation charter. This consultation charter must include guidelines, not inconsistent with the Act, relating to the processes for:

  • amending the Electricity Industry Participation Code (Code)
  • consulting on proposed amendments to the Code.

For the sake of clarity, the Authority has divided the consultation charter into two parts:

  • Part 1 relates to processes for amending the Code.
  • Part 2 relates to processes for consulting on proposed amendments to the Code.

Charter about advisory groups

The Act requires the Authority to appoint an advisory group called the Security and Reliability Council (SRC) to provide independent advice to the Authority on:

  • the performance of the electricity system and the system operator
  • reliability of supply issues.

The Act also requires the Authority to establish one or more other advisory groups to provide independent advice to the Authority on the development of the Code and on market facilitation.

The Act requires the Authority to make and make publicly available a charter on:

  • how it will establish and interact with the advisory groups
  • when and how it will consult advisory groups on material changes to the Code
  • how advisory groups must operate, including provisions concerning procedure.