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 are sections 172D(1)(1)(a) and 172D(1)(1)(d) of the Act.
3. The definition of "causer" in Part A is amended and Rules 11.5.1A-D are inserted in Section IV of Part C. The amendments:
(a) revise the definition of causer to more accurately reflect the design intent and remove the existing lack of clarity regarding its purpose and application;
(b) set out the process by which the system operator makes a determination on the causer;
(c) require parties to provide the information required by the system operator in making its determination;
(d) provide for affected parties to be involved in the determination process; and
(e) provide a means for resolving disputes between parties in relation to the system operator’s determination.
4. Pursuant to section 172Z(4) of the Act, the reasons for my decision to amend the Rules are:
(a) The amendments better enable the event charge regime to operate in a manner that delivers its purpose of making explicit the costs of asset owner decisions (investment, operation and maintenance) that can affect the cost of instantaneous reserve procurement, and thereby incentivising asset owners to factor reliability into the design, operation and maintenance of plant; and
(b) the amendments also reduce the costs, timeframes and resources involved in making a determination,
and resolving any disputes in relation to it.
5. These rules come into force on the 28th day after the date on which they are notified in the New Zealand Gazette.
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/rulesand
regs/rules
Dated at Wellington this 27th day of July 2010.
HON GERRY BROWNLEE, Minister of Energy and Resources.