1. Pursuant to section 172Z (4) of the Electricity Act
1992 (“Act”), I notify my decision to recommend that
the Governor-General make the Electricity Governance Amendment Regulations 2005 and the reasons for my decision.
Recommended Amendment to Electricity Governance Regulations 2003
2. I decided to recommend to the Governor-General that the Electricity Governance Amendment Regulations 2005 be made, as recommended by the Electricity Commission and without change.
3. I made this recommendation pursuant to subpart 2 of Part 14 of the Act and in accordance with section 172E
of the Act.
4. The recommended amendment to the Electricity Governance Regulations 2003 will:
(a) limit the liability of a person who provides an ancillary service, as defined in the Rules (known as an “ancillary service agent” or “ASA”), in its capacity as an ASA, under Part G and Rule 8 of Technical Code B of Schedule C3 of Part C of the Electricity Governance Rules 2003 (“the Rules”) to:
(i) in respect of any one event or series of closely related events arising from the same cause or circumstance, the lesser of $100,000 or 5% of the expected annual fees for the relevant type
of ancillary service; and
(ii) in respect of all events occurring in the 12 month period ending with the breach, the lesser of $300,000 or 20% of the expected annual fees for the relevant type of ancillary service; and
(b) relieve an ASA of its obligations to perform as an ASA under the Regulations and Rules if the ASA is unable to perform those obligations as a result of a force majeure event.
Reason for Decision
5. The reason for my decision is that the recommended amendments will facilitate the continued and efficient provision of ancillary services which contribute to the stability and effective operation of the New Zealand electricity market.
Dated at Wellington this 12th day of December 2005.
DAVID PARKER, Minister of Energy.