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 provisions for the Electricity Governance Regulations in relation to which the amendments to the Rules are made are sections 172D(1)(3) and 172D(1)(4) of the Act.
3. The existing policy statement in Schedule C4 of Part C of the Rules will be replaced in its entirety with a new Schedule C4. The key changes are to:
(a) enhance the description of security planning and coordination;
(b) extend discretion and flexibility in the identification and management of risks;
(c) better define the methodology for identifying, assessing and notifying risks;
(d) better formulate processes and procedures for management of constraints;
(e) introduce new provisions for risk management; and
(f) increase clarity of policy statement.
4. Pursuant to section 172Z(4) of the Act, the reasons for my decision to amend the Rules are that:
(a) the changes contained in the new Schedule C4 improve the policies and means by which the system operator can comply with the principal performance obligations and provide better transparency and clarity to participants as to the policies the system operator intends to follow to meet the principal performance obligations; and
(b) the new policy statement complies with the requirement in the Rules to review the policy statement annually.
5. These Rules come into force on 31 August 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 10th day of July 2007.
DAVID PARKER, Minister of Energy.