This notice of the grant of an exemption is issued by
the Electricity Commission ("Commission"), formally constituted as the Electricity Governance Board under the Electricity Act 1992, pursuant to Regulation 194 of
the Electricity Governance Regulations 2003 ("Regulations") in favour of Transpower New Zealand Limited ("Transpower"), Contact Energy Limited ("Contact"), Meridian Energy Limited ("Meridian"), Genesis Power Limited ("Genesis") and Alinta ENZ Limited ("Alinta").
This exemption is being granted under urgency in reliance on Regulation 194 (4).
Notice of the Grant of an Exemption ("notice")
Regulation 194 (2) requires that the exemption and
the Commission's reasons for granting it are notified in the New Zealand Gazette as soon as practicable after being granted.
Subject to the terms and conditions imposed upon Transpower, Contact, Meridian, Genesis and Alinta in respect of any exemption contained within this notice,
the Commission hereby notifies it grants an exemption to Transpower, Contact, Meridian, Genesis and Alinta from
the requirement to comply with the following Electricity Governance Rules ("Rules"):
1. Rule 11.5.2 of section IV of part C (event costs allocated to event causers).
Terms and Conditions of the Grant of the Exemption
Pursuant to Regulation 194 (1), the Commission may, in its discretion and upon the terms and conditions (if any) that
it thinks fit, exempt any participant, or class of participants, from compliance with all or any of the Rules.
The Commission must include an expiry date pursuant to Regulation 194 (5) (b).
In respect of the exemption contained within this notice, the Commission imposes the following terms and conditions:
1. The exemption shall expire on 28 February 2005.
The Commission notes that Regulation 196 provides that an exemption may be varied or revoked, either on the application by a participant or on the initiative of the Commission.
Commission's Reasons for Grant of the Exemption Contained in This Notice
The reasons for granting of the exemption are as follows:
(a) The Commission has concerns that the instantaneous reserve under-frequency event charge is creating negative market impacts.
(b) Granting the exemption will allow time for the Commission to investigate the issue and, if required, implement rule changes which appropriately address the concerns.
Date Upon Which the Exemption Becomes Effective
Pursuant to Regulation 195, the date upon which the exemption contained in this 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 16 September 2004.
Pursuant to Regulation 194 (5) (c), the Commission will publicise the exemption on the Commission's web site and will have regard to any views that participants make known to it by 18 October 2004 at 5.00 p.m.
For and on behalf of the Electricity Governance Board:
ROY HEMMINGWAY, Chairman.
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