Plain language law

New Zealand law explained for everyone

Electricity Industry Act 2010

Miscellaneous - State-owned enterprise asset reconfiguration and miscellaneous matters - Levy of industry participants

128: Levies

You could also call this:

“Rules for paying money to support the electricity industry”

You have to pay a levy if you’re part of the electricity industry in New Zealand. The government makes rules about this levy. The money from the levy pays for many things, including:

The work of the Electricity Authority Costs related to the Whirinaki power plant Some of the work done by the Energy Efficiency and Conservation Authority Helping people compare and switch electricity companies (up to a certain amount) The Small Electricity Consumers Agency The Rulings Panel Fixing disputes in the electricity industry Making forecasts about electricity supply and demand Setting up the Electricity Authority

The levy can be different for different types of industry members. The government can change how much the levy is each year. If they don’t collect enough money one year, they can collect more in the next few years to make up for it.

If you don’t pay the levy, the Electricity Authority can take you to court to get the money. The Authority has to keep the levy money separate from other funds.

The government can make exceptions or reduce the levy for some people or groups. These rules about the levy are considered “secondary legislation,” which means they’re made under the authority of another law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2634544.

Topics:
Money and consumer rights > Taxes Business > Industry rules Environment and resources > Climate and energy
Previous

127: Whirinaki, or

"The Minister can stop the Whirinaki backup power agreement early"

Next

129: Authority consultation about request for appropriation, or

"The Electricity Authority must ask industry members before requesting money for costs"

Part 5 Miscellaneous
State-owned enterprise asset reconfiguration and miscellaneous matters: Levy of industry participants

128Levies

  1. Every industry participant (or prescribed class of industry participant) must pay to the Authority on behalf of the Crown a levy prescribed by regulations.

  2. The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for the levy.

  3. The levy must be prescribed on the basis that the following costs should be met fully out of the levy:

  4. the costs of the Authority in performing its functions and exercising its powers and duties under this Act and any other enactment; and
    1. the costs that are associated with the Whirinaki agreement referred to in section 127, and any costs incurred by the Crown that are associated with the Whirinaki generating plant after the Whirinaki agreement is terminated; and
      1. a portion of the costs of the Energy Efficiency and Conservation Authority in performing its functions and exercising its powers and duties under the Energy Efficiency and Conservation Act 2000 where the size of the portion to be met by levies under this Act is determined by the Minister; and
        1. the costs incurred by the Crown before 1 May 2014 in promoting to customers the benefits of comparing and switching retailers, subject to both of the following limits:
          1. a limit of $5 million per financial year; and
            1. an overall limit of $15 million for the period commencing on 1 November 2010 and ending with 30 April 2014; and
            2. the costs incurred by the person or persons performing the function of the Small Electricity Consumers Agency, or a portion of those costs, where the size of the portion to be met by levies under this Act is determined by the Minister; and
              1. the costs of the Rulings Panel; and
                1. the costs of establishing and operating any regulated dispute resolution scheme in respect of the electricity industry under Schedule 4; and
                  1. the costs incurred by the Crown in relation to developing and publishing regional electricity supply and demand forecasts and scenarios, and related information and analysis, for the purpose of assisting investment planning by industry participants; and
                    1. for the first financial year to which the levy applies, the costs incurred by the Crown on or after 1 January 2010 relating to establishing the Authority, disestablishing the Electricity Commission, transferring functions to other agencies, and preparing the initial Code; and
                      1. the costs of collecting the levy money.

                        1. The levy may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recovered (along with any financing charge) over any period of up to 5 years.

                        2. The regulations may—

                        3. specify the amount of the levy or method of calculating or ascertaining the amount of the levy:
                          1. include, in the method of calculating or ascertaining the amount of the levy, provisions related to any shortfall in recovering, or over-recovery of, the actual costs from a previous year:
                            1. include or provide for including in the levy any shortfall in recovering the actual costs:
                              1. refund or provide for refunds of any over-recovery of those actual costs:
                                1. provide for different levies for different classes of industry participants:
                                  1. specify the financial year or part financial year to which a levy applies, and apply that levy to that financial year or part financial year and each subsequent financial year until the levy is revoked or replaced:
                                    1. provide for the payment and collection of levies:
                                      1. require payment of a levy for a financial year or part financial year, irrespective of the fact that the regulations may be made after that financial year has commenced:
                                        1. exempt or provide for exemptions from, or provide for waivers of, the whole or any part of the levy for any case or class of cases.

                                          1. The levy for a financial year that starts after the Authority begins to carry out any additional function under this Act or any other Act may cover the costs of performing that additional function, irrespective of the fact that the regulations may be made and come into effect after the start of the financial year.

                                          2. The amount of any unpaid levy is recoverable in any court of competent jurisdiction as a debt due to the Authority on behalf of the Crown.

                                          3. The Authority must pay into a Crown Bank Account, and separately account for, each levy payment.

                                          4. Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                                          5. If regulations authorise a person to grant exemptions or waivers referred to in subsection (5)(h),—

                                          6. an instrument granting an exemption or a waiver is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements), unless it applies only in a particular case; and
                                            1. the regulations must contain a statement to that effect.

                                              Notes
                                              • Section 128(3)(c): amended, on , by section 4(1) of the Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 (2017 No 27).
                                              • Section 128(3)(da): inserted, on , by section 44 of the Electricity Industry Amendment Act 2022 (2022 No 46).
                                              • Section 128(5)(aa): inserted, on , by section 4(2) of the Energy Innovation (Electric Vehicles and Other Matters) Amendment Act 2017 (2017 No 27).
                                              • Section 128(9): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                              • Section 128(10): inserted, on , by regulation 49 of the Legislation Act (Amendments to Legislation) Regulations 2021 (LI 2021/247).