Electricity Industry Act 2010

Preliminary provisions

5: Interpretation

You could also call this:

“Explaining important words and roles in electricity rules”

In this Act, unless the context says otherwise, there are many important terms you need to know:

An ancillary service agent is someone who provides special services to help keep the electricity system running smoothly.

An approved test house is a place that checks and adjusts electricity meters.

Assets include all kinds of property and rights.

The Authority or Electricity Authority is a group set up by section 12 of this Act.

A breach means breaking the rules, as explained in section 6.

A business is any activity, whether it makes money or not.

The Code or Electricity Industry Participation Code are the rules the Authority manages.

The clearing manager is the person chosen by the Authority to handle money matters in the electricity market.

A community trust is a special kind of trust that helps people in a specific area.

A consumer is anyone who uses electricity but doesn’t sell it to others.

A customer co-operative is like a community trust, but it’s a company instead of a trust.

A customer trust is a special kind of trust that helps electricity customers in a specific area.

Distribution means moving electricity on power lines that aren’t part of the national grid.

A distribution agreement is a special contract mentioned in section 44A(1).

A distributor is a business that moves electricity around.

A domestic consumer is someone who uses electricity at home.

Domestic premises are places where people live, but not temporary places like hotels or hospitals.

Generation means making electricity that goes into the national grid or a local network.

A generator is a business that makes electricity.

An industry participant is someone involved in the electricity industry, as listed in section 7.

An industry service provider is someone who does a job in the electricity industry that’s mentioned in the Code.

Line function services are tasks related to electricity lines, as defined in the Electricity Act 1992.

Lines are the equipment used to move electricity around.

A load aggregator is someone who works with many electricity users to manage how much electricity they use.

A manager is someone who runs a business or organization.

A market operation service provider does specific jobs to help the electricity market work, like keeping records or managing payments.

A metering equipment owner owns the devices that measure electricity use.

A metering equipment provider is responsible for the devices that measure electricity use.

The Minister is the government official in charge of this part of the law.

The Ministry is the government department that looks after this part of the law.

The national grid is all the main power lines owned by Transpower.

A network is all the power lines and equipment a distributor uses.

To publicise means to make information available for free on the internet and in other ways.

Publicly available means information that anyone can see for free on the internet or in person, and can buy copies of for a reasonable price.

A purchaser is someone who buys electricity from the clearing manager.

Regulations are additional rules made under this Act.

A retailer is a business that sells electricity to consumers.

Retailing means selling electricity to consumers who won’t sell it to others.

The Rulings Panel is a group mentioned in section 23 that makes decisions about electricity industry disputes.

A small business consumer is a non-domestic electricity user that uses less than 40 MWh per year or falls into a special category defined by regulations.

A specified person is someone involved in two different parts of the electricity industry that are covered by special rules in section 32(3).

The system operator makes sure the electricity system runs smoothly in real-time.

A trader in electricity is someone who buys and sells electricity or contracts related to electricity prices.

Transmission means moving electricity through the national grid.

Transpower is the company that owns and runs the national grid.

Works are the equipment used to generate, change, or move electricity, but not the equipment inside buildings or homes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2634242.


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"This law explains why we have rules for electricity in New Zealand"


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"What counts as breaking a rule in this law"

Part 1 Preliminary provisions

5Interpretation

  1. In this Act, unless the context otherwise requires,—

    ancillary service agent means a person who, pursuant to an agreement with the system operator, provides frequency keeping, instantaneous reserve, voltage support, over frequency reserve, black start, or any other ancillary service specified in the Code, and as defined in the Code

      approved test house means a meter testing and calibration facility that has been approved in accordance with the procedures in the Code

        assets includes property of any kind, whether tangible or intangible, and includes rights, interests, and claims of every kind however they arise

          Authority, or Electricity Authority, means the Electricity Authority established by section 12

            breach has the meaning given in section 6

              business means any undertaking that is carried on whether for gain or reward or not

                Code or Electricity Industry Participation Code means the Code administered by the Authority under subpart 3 of Part 2

                  clearing manager means the person appointed by the Authority to act as the clearing manager under the Code

                    community trust, in relation to a distributor or a retailer, means a trust in respect of which—

                    1. at least 90% of the income beneficiaries comprise persons who are a class or classes identified by reference to their domicile or location or operation within the geographic area or areas of operation of the distributor or retailer; and
                      1. at least 90% of its income distributions are paid to those beneficiaries or for purposes related to that geographic area or areas

                        consumer means any person who is supplied, or applies to be supplied, with electricity other than for resupply

                          customer co-operative, in relation to a distributor or a retailer, means a co-operative company (as defined in section 2(1) of the Co-operative Companies Act 1996) that has the characteristics described in the definition of customer trust in this section, applied as if references to trusts were to co-operatives, references to income beneficiaries were to shareholders, and all other necessary modifications were made

                            customer trust, in relation to a distributor or a retailer, means a trust in respect of which—

                            1. at least 90% of the income beneficiaries comprise persons who are a class or classes identified by reference to any of—
                              1. the person's connection to the lines of the distributor:
                                1. the person's liability for payment for supply of electricity from the retailer that retails to customers that are connected to the distributor's network:
                                  1. the person's receipt of electricity from the retailer that retails to customers that are connected to the distributor's network:
                                    1. the person's liability for payment for the connection to the lines of the distributor:
                                      1. the person's liability for payment for line services supplied by the distributor; and
                                      2. at least 90% of its income distributions are paid to those beneficiaries

                                        distribution means the conveyance of electricity on lines other than lines that are part of the national grid

                                          distribution agreement means an agreement referred to in section 44A(1)

                                            distributor means a business engaged in distribution

                                              domestic consumer means a person who purchases or uses electricity in respect of domestic premises

                                                domestic premises means premises that are used or intended for occupation by a person principally as a place of residence; but does not include premises that constitute any part of premises described in section 5(1)(c) to (k) of the Residential Tenancies Act 1986 (which refers to places such as jails, hospitals, hostels, hotels, and other places providing temporary accommodation)

                                                  generation means the generation of electricity that is fed into the national grid or a network

                                                    generator means a business engaged in generation

                                                      industry participant, or participant, means a person, or a person belonging to a class of persons, identified in section 7 as being a participant in the electricity industry

                                                        industry service provider means a person who—

                                                        1. provides a service or performs a role in the electricity industry that is recognised in the Code, including the people listed in section 7(2); but
                                                          1. is not any of the industry participants identified in section 7(1)(a) to (h)

                                                            line function services has the meaning given in section 2(1) of the Electricity Act 1992

                                                              lines means works used or intended to be used to convey electricity

                                                                load aggregator means a person who contracts with 1 or more consumers so that the person is able to deal with the electricity otherwise required by those consumers in any way, including putting in place agreements under which those consumers voluntarily change their consumption level, so that the person is able to offer the combined increase or reduction in the interruptible load of all those consumers as collective demand, either in the wholesale electricity market or under any other bilateral agreement or contract

                                                                  manager, in relation to a person,—

                                                                  1. means a person who, whether alone or jointly with any other person, manages, or directs or supervises the management of, the whole or a substantial part of the business and affairs of the person; and
                                                                    1. includes,—
                                                                      1. in relation to a trust, a trustee:
                                                                        1. in relation to a local authority, a member; but
                                                                        2. does not include,—
                                                                          1. in relation to a body corporate, a director of that body corporate:
                                                                            1. in relation to a business in which a local authority or any other person has an interest, a member of that local authority or manager of that person only as a result of that person having that position

                                                                            market operation service provider means the system operator and any person appointed by the Authority under the Code to perform any of the following market operation service provider roles:

                                                                            1. the registry manager:
                                                                              1. the reconciliation manager:
                                                                                1. the pricing manager:
                                                                                  1. the clearing manager:
                                                                                    1. the market administrator:
                                                                                      1. the wholesale information trading system provider:
                                                                                        1. any other role identified in regulations as a market operation service provider role

                                                                                          metering equipment owner and meter owner means a person who owns any or all of the items of metering equipment installed in a metering installation

                                                                                            metering equipment provider means a person who, in accordance with the Code,—

                                                                                            1. assumes responsibility for any metering installation; or
                                                                                              1. is appointed to be responsible for any metering installation

                                                                                                Minister, in any provision, means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is responsible for the administration of that provision or the Part containing that provision

                                                                                                  Ministry, in any provision, means the department responsible for the administration of that provision or the Part that contains that provision

                                                                                                    national grid means the lines and associated equipment used or owned by Transpower to convey electricity

                                                                                                      network means a distributor's lines and associated equipment used for distribution

                                                                                                        publicise, in relation to a document or information being publicised by a person, means making the document or information available, free of charge,—

                                                                                                        1. on the person's Internet site at all reasonable times (except to the extent that doing so would infringe copyright in the material or be inconsistent with any enactment or rule of law); and
                                                                                                          1. in any other manner that the person may decide

                                                                                                            publicly available, in relation to making a document or information available, means that—

                                                                                                            1. the document or information is available for inspection, free of charge, on an Internet site that is publicly accessible at all reasonable times (except to the extent that doing so would infringe copyright in the material or be inconsistent with any enactment or rule of law); and
                                                                                                              1. a copy of the document or information is available for inspection at all reasonable times, free of charge, at the head office of the person required to make it publicly available or, if the person is a Minister, at the head office of the relevant Ministry; and
                                                                                                                1. copies of the document may be purchased by any person at a reasonable price

                                                                                                                  purchaser means an industry participant who buys electricity from the clearing manager; and includes any other participant that has assumed that person's rights and obligations in relation to the purchaser

                                                                                                                    regulations means regulations made under this Act

                                                                                                                      retailer means a business engaged in retailing

                                                                                                                        retailing means the sale of electricity to a consumer other than for the purpose of resale

                                                                                                                          Rulings Panel means the Rulings Panel continued by section 23

                                                                                                                            small business consumer means a consumer that is not a domestic consumer and—

                                                                                                                            1. that is in a class specified in regulations made under section 113A; or
                                                                                                                              1. if no such regulations have been made, that consumes less than 40 MWh of electricity per year

                                                                                                                                specified person means a person (other than an industry participant) who is involved in both classes of industry participants that are the subject of any provisions made in accordance with section 32(3)

                                                                                                                                  system operator means the person who ensures the real-time co-ordination of the electricity system, and is the person referred to in section 8

                                                                                                                                    trader in electricity means a person who trades in electricity or electricity derivatives, and includes—

                                                                                                                                    1. a person who buys or sells contracts under which the payment obligations may change according to the changes in the price at which electricity is bought or sold in any market in New Zealand; and
                                                                                                                                      1. any related clearing house or exchange

                                                                                                                                        transmission means the conveyance of electricity through the national grid

                                                                                                                                          Transpower means Transpower New Zealand Limited or any subsidiary of, or successor to, that company

                                                                                                                                            works

                                                                                                                                            1. means any fittings (as defined in section 2(1) of the Electricity Act 1992) that are used, designed, or intended for use in or in connection with the generation, conversion, transformation, or conveyance of electricity; but
                                                                                                                                              1. does not include any part of an electrical installation (as defined in section 2(1) of the Electricity Act 1992).

                                                                                                                                              Notes
                                                                                                                                              • Section 5 assets: inserted, on , by section 5(3) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 business: inserted, on , by section 5(3) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 Code: repealed, on , by section 5(1) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 Code or Electricity Industry Participation Code: inserted, on , by section 5(1) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 distribution agreement: inserted, on , by section 5(3) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 load aggregator: amended, on , by section 5(2) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 manager: inserted, on , by section 5(3) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 small business consumer: inserted, on , by section 5(3) of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                                                                                                                              • Section 5 specified person: inserted, on , by section 51 of the Regulatory Systems (Economic Development) Amendment Act 2025 (2025 No 11).