This notice of a new annual levy rate for supply security operations for the financial year ending 30 June 2005, pursuant to Regulation 8 of the Electricity (Levy of Industry Participants) Regulations 2005 (“Regulations”), is issued by the Electricity Commission (“Commission”), established under the Electricity Act 1992.
The Regulations came into effect on 21 April 2005.
The Regulations provide that the levy rate for the financial year ending 30 June 2005 includes the Commission’s costs
in relation to the Whirinaki contract from 1 April 2005 (being the commencement date of that contract).
The Whirinaki contract is the contract between the Commission and the Crown providing for the power station located
at Whirinaki, and the associated assets, rights and liabilities, to be available for the purposes of reserve energy (Whirinaki contract).
Regulation 14 applies to the costs of any activity that the Commission began to carry out before the date on which
the Regulations come into force, or begins to carry out after that date (whether that activity is an initial or a new function) and that the Commission was authorised to carry out under the Act at that time.
Under Regulation 14, the Commission may decide to recover all or any of the costs of the activity by any one or more of
the following methods:
? In any one or more monthly instalments of the levy, by setting a new rate for that activity or by adjusting an existing levy rate under Regulation 10; or
? in the end-of-year reconciliation under Regulations 11 to 13.
The Commission has decided to recover the costs in relation to the Whirinaki contract by setting a new annual levy rate
for supply security operations under Regulation 10.
Under Regulation 10, an annual levy rate is adjusted by redoing the calculation in Regulation 7 using the amended figures
for the whole or any part of the financial year.
Regulation 7 specifies how the Commission must calculate the annual levy rates.
New Annual Levy Rate for the Financial Year Ending 30 June 2005
The Commission has calculated the new annual levy rate for the financial year ending 30 June 2005, in relation to security of supply operations in order to recover the costs in relation to the Whirinaki contract from 1 April 2005, in accordance with Regulations 14, 10 and 7.
The new security of supply operations annual levy rate for that period is as follows:
Generators Purchasers Distributors
Supply security operations (Whirinaki) $0.000/MWh $0.5875/MWh $0.0000/MWh
Dated at Wellington this 28th day of June 2005.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.