Pursuant to section 11 of the Electricity Industry Act 2010 ("Act"), the Electricity Authority gives the following notice.
N o t i c e
1. Title and commencement-(1) This notice is the Electricity Industry (Exemption No. 176 (New Zealand Aluminium Smelters Limited)) Exemption Notice 2013.
(2) This notice comes into force on the day after the date it is notified in the New Zealand Gazette.
2. Exemption-New Zealand Aluminium Smelters Limited ("NZAS") is exempted from complying with the following clauses of the Electricity Industry Participation Code 2010 ("Code"), in respect of the local network at TWI2201:
(a) clause 10.13(1);
(b) clause 11.10; and
(c) clause 15.38.
3. Term-This exemption expires at the close of
31 December 2030.
4. Reasons for granting the exemption-The reasons for granting this exemption are:
(a) granting the exemption meets the requirements in section 11(2) of the Act for granting exemptions;
(b) although it would be impossible for NZAS to provide a metering installation on its installation control point ("ICP") on TWI2201 NZAS GN, quantities can be accurately determined by differencing from the metered grid exit point volume;
(c) without the exemption, NZAS would incur high administration and compliance costs obtaining
and maintaining certification as a reconciliation participant, for little activity;
(d) without the exemption, NZAS would incur ongoing administration and compliance costs associated with distributor processes audits, for little or no actual activity; and
(e) as NZAS is the only purchaser at TWI2201 NZAS GN, the exemption can have no impact on any other participant or service provider, and will not affect any other Code provision.
Dated at Wellington this 9th day of September 2013.
For and on behalf of the Electricity Authority:
DR THOMAS BRENT LAYTON, Chairperson, Electricity Authority.