Pursuant to Regulation 194 of the Electricity Governance Regulations and Rules 2003 ("the EGRs"), this Exemption Notice is issued by the Electricity Commission, formally constituted as the Electricity Governance Board ("the Commission"), in favour of Energy Clearing House Limited ("ECHL").
Subject to the terms and conditions imposed upon ECHL as noted below, the Commission hereby grants ECHL an exemption from the requirement to comply with the following Electricity Governance Rule:
1. All rules in Part D (metering arrangements).
Exemption Notice to Appear in the New Zealand Gazette
Regulation 194 (2) requires that an exemption, and the Commission's reasons for granting it, must be notified in the
New Zealand Gazette as soon as practicable after being granted. Accordingly, the exemption the subject of this Exemption Notice and the Commission's reasons for granting it, shall be notified in the New Zealand Gazette on 26 February 2004.
Terms and Conditions of Grant of Exemption
Pursuant to Regulation 194 (1), the Commission may, in its discretion and upon the terms and conditions (if any) that it thinks fit, grant an exemption. In respect of the exemption contained within this Exemption Notice the Commission imposes the following terms and conditions:
1. The exemption only applies to the extent that ECHL has retailer obligations as a result of ECHL discharging its obligations in ECHL's role as clearing manager under the EGRs.
Board's Reasons for Granting the Exemption Contained in this Notice
Pursuant to the requirements upon the Commission contained within Regulation 194 (3), the Commission has, before granting the exemption contained within this Exemption Notice:
(a) had regard to section 172N of the Electricity Act 1992 ("the Act");
(b) subject to Regulation 194 (4), publicised its intention to grant the exemption; and
(c) had regard to any views that have been made known to the Commission within the time specified by the Commission.
The reasons for granting the exemption are as follows:
(a) The definition of "Electricity Retailer" in the Act includes ECHL in its capacity as clearing manager as the definition includes parties who sell electricity to another party other than for the purposes of resupply.
(b) ECHL is concerned that it is possible to construe the definition as placing unintended obligations on them. A specific obligation would be for ECHL to provide metering equipment for some direct connect consumers. It is possible that other amendments to Part D would add further unintended obligations on ECHL as a result of the definition of "retailer".
(c) The Commission considers that ECHL should not have any obligations as a retailer in respect of Part D by virtue of its role as clearing manager.
(d) The Commission is unable to identify any participants who would be unduly affected by the grant of the exemption.
(e) The Commission has decided it is appropriate to exempt ECHL from this obligation while ECHL continues in its role as clearing manager.
Date Upon Which the Exemption Becomes Effective
Pursuant to Regulation 195, the date upon which the exemption contained in this Exemption Notice takes effect, being a date which is not earlier than the date of the New Zealand Gazette notice in respect of the exemption, is 1 March 2004.
For and on behalf of the Electricity Governance Board:
ROY HEMMINGWAY, Chairman.