1. Pursuant to section 172I of the Electricity Act 1992 ("Act"), I notify the amendment of the Electricity Governance Rules 2003 ("Rules") under section 172H of the Act.
2. The empowering provision for the electricity governance regulations in relation to which the amendments to the Rules are made is section 172D of the Act.
3. A brief description of the nature of the amendments
is the addition of a new Schedule F5 to Section IV of Part F of the Rules to add a transmission pricing methodology for the purposes of Section IV of Part F of the Rules.
4. Pursuant to section 172Z(4) of the Act, the reasons for my decision to amend the Rules are that:
(a) Rule 8.4 of Section IV of Part F of the Rules requires the Electricity Commission to make a recommendation to me about the adoption of
a transmission pricing methodology to ensure that the full economic costs of Transpower's services
are allocated in accordance with the principles set out in Rule 2 of Section IV of Part F of the Rules;
(b) the Electricity Commission has evaluated the proposed transmission pricing methodology in accordance with Section IV of Part F of the
Rules; and
(c) I consider that the transmission pricing methodology recommended by the Electricity Commission best aligns with the pricing principles in Section IV
of Part F of the Rules, and best achieves the objectives and outcomes set for the Commission in the Act and the Government Policy Statement on Electricity Governance and is therefore the most appropriate methodology.
5. These rules come into force on 1 September 2007.
6. Copies of the Rules may be inspected free of charge or purchased from the Electricity Commission, Level 7, ASB Bank Tower, 2 Hunter Street, Wellington. The Rules can also be viewed on the Electricity Commission's website
http://www.electricitycommission.govt.nz/Rulesandregs/Rules
Dated at Wellington this 1st day of July 2007.
DAVID PARKER, Minister of Energy.