In accordance with section 11 of the Electricity Industry Act 2010 (“Act”), the Electricity Authority gives the following notice.

Notice

1. Title and commencement—(1) This notice is the Electricity Industry (Exemption No. 239 (Electrica Limited)) Exemption Notice 2016.

(2) This notice comes into force on 1 July 2016.

2. Exemption—Electrica Limited (“Electrica”) is exempted from complying with the obligation in clause 15.38 of the Electricity Industry Participation Code 2010 (“Code”) to obtain and maintain certification as a reconciliation participant.

3. Term—This exemption expires at the earlier of:

1. the close of 31 January 2017;
2. Electrica being responsible for more than 100 installation control points (“ICPs”); and
3. Electrica being responsible for an ICP with a metering installation category of 2, 3, 4 or 5.

4. Reasons for granting the exemption—The reasons for granting this exemption are:

1. granting the exemption will assist a small new entrant trader to enter the market, which could lead to increased competition for the long-term benefit of consumers;
2. granting the exemption will enable a conclusive audit outcome for Electrica;
3. the proposed exemption will have little or no impact on other participants or service providers, and will not affect any other Code provisions;
4. several other new entrant traders have been granted exemptions from clause 15.38 with similar criteria;
5. there is a Code amendment in progress to allow reconciliation participants, like Electrica, who meet certain criteria additional time to have an audit for certification; and
6. granting the requested exemption meets the requirements in section 11(2) of the Act.

Dated at Wellington this 7th day of June 2016.

For and on behalf of the Electricity Authority:
Hon ROGER SOWRY, onzm, Member, Electricity Authority.