2003 – Rule Amendment Proposal No. 31
This notice of a recommendation concerning the Electricity Governance Rules (“EGRs”), Rule Amendment Proposal No. 31, is issued by the Electricity Commission (“EC”), established under the Electricity Act 1992 (“Act”), pursuant to section 172E (2) (c) of that Act.
Section 172E (2) (c) provides that, no later than 10 working days after making a recommendation concerning the EGRs
to the Minister of Energy, the EC must publicise the recommendation and the assessment completed under section 172F of the Act.
Recommendation
The EC made a recommendation that Rules 4.3 and 4.3.1 of Schedule G7 of Part G of the EGRs be amended, relevant defined terms be inserted into the EGRs, and consequential amendments to Rules 2.4, 4.2, 4.2.1, 4.2.2 and 4.4 of Schedule G7 of Part G, and Rule 2.2 of Appendix 1 of Code of Practice G2 of Schedule G8 of Part G be made, in reliance on section 172F (3), on 24 February 2005.
Section 172F (3) provides that the EC is not required to comply with section 172F (1) (which relates to carrying out an assessment) if it is satisfied that the effect of the recommendation is minor and will not adversely affect
the interests of any person in a substantial way.
In reliance on section 172F (3), no such assessment has been carried out under section 172F (1) of the Act.
Recommended Amendment to the Rules
The recommended amendments to Rules 4.3 and 4.3.1
of Schedule G7 of Part G of the EGRs support a set of guidelines for undertaking forward estimate audits, which are intended to encourage auditors to use the same audit methodology.
The EC also recommended the insertion of the following defined terms into Part A of the EGRs in order to clarify the meaning of those rules:
? “historical estimate”;
? “forward estimate”;
? “initial file”; and
? “revised file”.
Consequential amendments to Rules 2.4, 4.2, 4.2.1, 4.2.2 and 4.4 of Schedule G7 of Part G and Rule 2.2 of Appendix 1 of Code of Practice G2 of Schedule G8 of Part G were also recommended to reflect the new defined terms.
A copy of the EC’s recommendation is available, at no cost, on the EC’s web site:
http://www.electricitycommission.govt.nz/rulesandregs/recommend
Dated at Wellington this 23rd day of February 2005.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.