Amendments to the Electricity Industry Act
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The Electricity Authority will have the power to regulate to protect the interests of small consumers and other new powers under amendments to the Electricity Industry Act 2010.
The Electricity Industry Amendment Act 2022 implements a number of recommendations from the 2019 Electricity Price Review to improve the electricity regulatory system.
The changes to the legislation include an additional statutory objective and function for the Authority to protect the interests of domestic consumers and small business consumers in relation to their electricity supply. The additional objective is specifically aimed at the direct dealings of industry participants with domestic consumers and small business consumers.
The amendment also transfers the Part 3 Arms-Length rules from the Act into the Electricity Industry Participation Code (a new Part 6A) to give the Authority the ability to respond quickly to technological changes and promote competition and innovation in emerging distributed energy contestable markets. It also strengthens the Authority’s enforcement regime through increased penalties and gives the Authority the ability to set information and quality requirements for distributors.
All the changes come into effect on 1 September 2022 aside from the additional objective which will come into force in four months’ time on 31 December 2022.
The new Part 6A of the Electricity Industry Participation Code 2010 can be found here.
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Rulings Panel decision on a breach by Transpower New Zealand Limited as the grid owner
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The Rulings Panel has issued its decision on an admitted breach by Transpower New Zealand Limited (as the grid owner) of clause 4(4)(a) of Technical Code A of Schedule 8.3 of the Code, between 1 December and 12 December 2020.
The breach occurred when the grid owner failed to provide and maintain grid asset protection systems on Kumara to Otira Circuit 1.
The breach resulted in consumers suffering a loss of supply valued at about $840,000 over five hours during peak morning demand.
The Rulings Panel agreed the grid owner breached the Code and ordered it to pay a $70,000 pecuniary penalty. The Rulings Panel also awarded the Authority a portion of its costs.
The Rulings Panel’s decision can be found here
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