In accordance with section 11 of the Electricity Industry Act 2010 (“Act”), the Electricity Authority gives the following notice.
1. Title and commencement—(1) This notice is the Electricity Industry (Exemption No. 253 (Ecosmart New Zealand Limited)) Exemption Notice 2017.
(2) This notice comes into force on the day after the date it is notified in the New Zealand Gazette.
2. Exemption—Ecosmart New Zealand Limited (“Ecosmart”) 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 on the earlier of:
- the close of 30 September 2017;
- Ecosmart being responsible for more than 100 installation control points (ICPs); and
- Ecosmart 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:
- granting the exemption will remove an inefficient barrier for a small new entrant trader to enter the market, which could lead to increased competition for the long-term benefit of consumers;
- a new auditing regime, which comes into force on 1 June 2017, removes the requirement for Ecosmart as a reconciliation participant to obtain ISO quality certification as part of certification;
- Ecosmart will satisfy the criteria under the new audit regime to have 12 months to obtain certification;
- granting the exemption will allow Ecosmart to obtain certification as a reconciliation participant under the new auditing regime, and reduce its costs to enter the market as a new entrant;
- the exemption will have little or no impact on other participants or service providers, and will not affect any other Code provisions; and
- granting the requested exemption meets the requirements in section 11(2) of the Act.
Dated at Wellington this 23rd day of February 2017.
For and on behalf of the Electricity Authority:
Hon ROGER SOWRY, onzm, Member, Electricity Authority.