The commission, pursuant to section 81 (5), varies its previous exemption, contained in Decision 360 and published in the New Zealand Gazette on 8 July 1999, of Infrastructure and Utilities NZ Limited from the application of section 35 (1) (e) of the Electricity Industry Reform Act 1998 in relation to a prohibited cross-involvement in the electricity lines business of Powerco Limited and the electricity supply business of TrustPower Limited.
The exemption is now subject to the following terms and conditions:
(a) Infrastructure & Utilities NZ Limited will continue to use all reasonable endeavours to cease its involvement in Powerco Limited by becoming non-associated with the New Plymouth District Council in respect of Powerco Limited.
(b) During the period of the exemption, Infrastructure
& Utilities NZ Limited will maintain an arms length relationship with Powerco Limited. Maintaining an arms length relationship means complying with the arms length rules defined in Schedule 1 of the Electricity Industry Reform Act 1998.
(c) Infrastructure & Utilities NZ Limited will not exercise any right it may have to promote or veto the appointment of any director in Powerco Limited.
It will allow New Plymouth District Council, the other major shareholder in Pukeariki Holdings Limited, to make any determinations on directors that are required to be made under the Pukeariki Holdings Limited structure.
(d) The exemption expires at midnight on 1 September 2000 unless any variation or earlier revocation in terms of section 81 (5) occurs.
(e) Infrastructure & Utilities NZ Limited will notify the commission 2 weeks in advance of additional involvement in any electricity lines or supply business, as defined in the Electricity Industry Reform Act 1998, which provides it on its own, or together with an associate, with an additional 0.5% of the assets, control rights or equity return rights of the electricity business.
(f) Infrastructure & Utilities NZ Limited will provide the commission with monthly written reports beginning
1 month after the date of this decision on the progress it is making to achieve compliance with the Electricity Industry Reform Act 1998.
The commission may vary or revoke this exemption at any time 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.