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. 241 (NextGen Energy Limited)) Exemption Notice 2016.

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

2. Exemption—NextGen Energy Limited (“NextGen”) 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 28 February 2017;
2. NextGen being responsible for more than 100 installation control points (“ICPs”); and
3. NextGen 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 NextGen;
3. the exemption will have little or no impact on other participants or service providers, and will not affect any other Code provisions;
4. the Authority has granted several other new entrant traders exemptions from clause 15.38 for similar reasons;
5. a Code amendment will come into force on 1 June 2017, which will allow reconciliation participants like NextGen, 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 26th day of August 2016.

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