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Electricity Industry Act 2010

Electricity industry governance - Electricity Industry Participation Code - Other content

44: Transmission agreements

You could also call this:

“Rules for agreements on connecting to and using the national power grid”

The rules about electricity transmission agreements are important for you to understand. These agreements are about connecting to and using the national power grid.

The Electricity Code can tell Transpower and other electricity companies to make agreements. These agreements are about connecting to the power grid, using it, and sometimes investing in it.

The Code can also set default rules for these agreements. This means there are some rules that automatically apply to all transmission agreements.

If Transpower and an electricity company both agree, they can change some of the default rules. But they can only do this if the Code says it’s okay to change those specific rules.

Every transmission agreement must include a rule that the electricity company will pay Transpower based on how electricity prices are set.

These transmission agreements are just as important as any other contract that companies freely agree to. Both sides must follow the rules in the agreement.

If companies don’t make the agreements they’re supposed to, the default rules from the Code will apply anyway. These rules will be just as strong as if they were in a real agreement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2634381.

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"The Minister's power to add new things to the electricity rules has been removed"

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44A: Distribution agreements, or

"Rules for agreements between power companies and others who use their networks"

Part 2 Electricity industry governance
Electricity Industry Participation Code: Other content

44Transmission agreements

  1. Without limiting section 32, the Code may require Transpower and 1 or more industry participants to enter into 1 or more agreements for connection to, use of, and (where relevant) investment in, the national grid (a transmission agreement).

  2. The Code may prescribe default terms and conditions that are deemed to be included in transmission agreements.

  3. The parties to a transmission agreement may, by mutual consent, agree to modify any default terms and conditions, but only if and to the extent that the Code permits those terms and conditions to be modified.

  4. Every transmission agreement between Transpower and an industry participant is deemed to include a provision under which the industry participant agrees to pay Transpower any amounts that Transpower charges the industry participant in accordance with the transmission pricing methodology.

  5. A transmission agreement is binding on both parties and enforceable as if it were a contract between the parties that had been freely and voluntarily entered into.

  6. If the parties do not comply with a requirement in the Code to enter into 1 or more transmission agreements, the default terms and conditions in the Code, and the provision in subsection (4), are binding on both parties and enforceable as if they were set out in a transmission agreement.

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