Notice of Reasons for Decision
1. Pursuant to section 172I of the Electricity Act 1992, I notify the amendment of the Electricity Governance Rules 2003 (“Rules”) under section 172H of the Electricity Act 1992.
2. The empowering provision for the electricity governance regulations in relation to which the Rule is made is section 172D (1) (1) (b) of the Electricity Act 1992.
3. This Rule amendment amends the definition of “availability cost” contained in Part A of the Rules to correct a drafting error that results in the double charging
of the reserve costs arising from dispensations.
4. The amendment is made in reliance on section 172F (3) of the Electricity Act 1992.
5. Pursuant to section 172Z (4) of the Electricity Act 1992, the reasons for my decision to amend the Rules are that:
? the amendment prevents the double-charging of reserve costs from dispensations in allocating reserve costs; and
? the amendment eliminates the cross-subsidy from compliant to non-compliant generators.
6. These Rules come into force on 8 July 2005.
7. Copies of the Rules may be inspected free of charge or purchased from the Electricity Commission, Level Seven, ASB Bank Tower, 2 Hunter Street, Wellington.
The Rules can also be viewed on the Electricity Commission web site:
http://www.electricitycommission.govt.nz/rulesandregs/rules
Dated at Wellington this 26th day of May 2005.
TREVOR MALLARD, Minister of Energy.