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(1)(1)(d), (e) and (f) of the Act.
3. The amendments involve the creation of a new Section VI of Part G of the Rules. The section, entitled
Hedge Arrangement Disclosure Rules, requires the disclosure of information about risk management contracts. Consequential amendments to Part A of the Rules have also been made.
4. Pursuant to section 172Z(4) of the Act, the reason for my decision to amend the Rules is that the rule changes will:
(a) increase transparency and liquidity within the electricity hedge market;
(b) address the absence of information available to risk management market participants; and
(c) improve confidence in the competitiveness of the risk management market.
5. These rules come into force on 2 February 2009.
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.
7. The Rules can also be viewed on the Electricity Commission’s website
http://www.electricitycommission.govt.nz/rulesandregs/rules
Dated at Wellington this 6th day of October 2008.
HON DAVID PARKER, Minister of Energy.