The commission, pursuant to section 81 of the Electricity Industry Reform Act 1998, exempts Tranz Rail Holdings Limited and its subsidiaries from the application of section 17 of that Act in relation to a prohibited cross-involvement in an electricity lines business and an electricity supply business.
The exemption is subject to the following terms and conditions:
(a) That Tranz Rail Holdings Limited and its subsidiaries shall not introduce a charge to any consumer they supply with electricity, for the use of or related to any electricity lines business they may own or operate.
(b) That Tranz Rail Holdings Limited and its subsidiaries shall not prevent access to their electricity lines, on reasonable terms and a timely basis, that any electricity supply business may require to supply electricity to any consumer connected to such lines.
(c) That Tranz Rail Holdings Limited and its subsidiaries shall not supply more than 2.5 gigawatt-hours per annum of electricity to any consumer (unrelated to Tranz Rail Holdings Limited) in New Zealand, excluding any electricity injected back into the National Grid as a result of regenerative engine braking by locomotives on the North Island Main Trunk railway.
(d) That Tranz Rail Holdings Limited and its subsidiaries shall not enforce any clause in any lease or other agreement with their tenants which requires a tenant to take a supply of electricity from Tranz Rail Holdings Limited and its subsidiaries so that any tenant shall be free to choose their electricity supplier.
(e) That Tranz Rail Holdings Limited and its subsidiaries will use their best endeavours to provide such reasonable information that any tenant taking a supply of electricity from Tranz Rail Holdings Limited and its subsidiaries may request to enable that tenant to assess competitive options available to it for the supply of electricity.
(f) That Tranz Rail Holdings Limited and its subsidiaries generate electricity only for their own consumption excluding:
? any electricity injected into the National Grid as a result of regenerative engine braking by locomotives on the North Island Main Trunk railway;
? electricity injected into the National Grid or local distribution network during times of civil emergency; and
? any electricity generated on board a train or inter-island ferry and consumed by a party unrelated to Tranz Rail Holdings Limited and its subsidiaries.
The commission may vary or revoke this exemption in accordance with section 81 (5) of the Electricity Industry Reform Act 1998.
The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.