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Electricity Industry Act 2010

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Schedule 4: Dispute resolution scheme

You could also call this:

“How to help people solve problems with electricity companies”

Here’s a summary of the Dispute Resolution Scheme schedule in plain language:

The dispute resolution scheme aims to help people with complaints about scheme members and to resolve indemnity disputes. It should be accessible, independent, fair, accountable, efficient, and effective.

The scheme can be either an approved scheme or a regulated scheme. An approved scheme needs to meet certain criteria and get approval from the Minister. The Minister can withdraw approval if the scheme doesn’t meet its requirements.

The rules of the scheme must cover things like who can make complaints, how complaints are handled, and what kind of solutions can be offered. The scheme can’t charge complainants to investigate or resolve complaints.

The scheme provider must keep a list of members, have an independent review every five years, and produce an annual report. They also need to give information to the Minister when asked.

If there’s no approved scheme, the government can make regulations for a regulated scheme and appoint someone to run it. The rules for this scheme would be similar to an approved scheme.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2634696.

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4Dispute resolution scheme Empowered by s 95(3)

1Purpose of dispute resolution scheme

  1. The purpose of the dispute resolution scheme is to ensure that—

  2. any person (including consumers, potential consumers, and owners and occupiers of land, but excluding members of the scheme) who has a complaint about a member has access to a scheme for resolving the complaint; and
    1. members have a mechanism for resolving indemnity disputes; and
      1. the scheme is accessible, independent, fair, accountable, efficient, and effective.

        Notes
        • Schedule 4 clause 1(aa): inserted, on , by section 16 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).

        2Interpretation

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

          approved scheme has the meaning given in clause 3

            dispute resolution scheme, at any time, means whichever of the following is in force under this schedule at the time:

            1. the approved scheme:
              1. the regulated scheme

                indemnity dispute means a dispute, referred to in section 95A of this Act and section 43EAA of the Gas Act 1992, concerning the application of the indemnity in section 46A of the Consumer Guarantees Act 1993

                  member, in relation to the dispute resolution scheme, means a person who is required to be a member of the dispute resolution scheme

                    provider, in relation to a scheme, means the person responsible for the scheme

                      regulated scheme means the scheme provided for in regulations made under clause 18.

                      Notes
                      • Schedule 4 clause 2 indemnity dispute: inserted, on , by section 16 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).

                      3Meaning of approved scheme

                      1. The approved scheme is—

                      2. the complaints resolution scheme (if any) approved by the Electricity Commission under section 158G of the Electricity Act 1992, and the Minister under section 43E of the Gas Act 1992 (provided the scheme's approval has not been withdrawn); or
                        1. the scheme approved by the Minister under clause 6 (provided the approval has not been withdrawn).

                          Compare

                          4Application for approval

                          1. The provider of a scheme may apply to the Minister for approval of the scheme as the approved scheme.

                          2. The application must include—

                          3. the rules of the scheme; and
                            1. any other information that the Minister, by notice in the Gazette, prescribes as required to be included in an application under this clause; and
                              1. the prescribed fee (if any).

                                1. The Minister may ask an applicant to supply any further information or documentation in support of the application.

                                Compare

                                5Mandatory considerations for approval

                                1. When considering an application under clause 4, the Minister must have regard to the following considerations in light of the principles listed in subclause (2):

                                2. whether the scheme is capable of meeting the purpose of the dispute resolution scheme as set out in clause 1:
                                  1. whether the scheme has broad support among the persons who are required to be members:
                                    1. whether the scheme is capable of dealing with a wide range of complaints by persons entitled to make a complaint:
                                      1. whether the scheme is an integrated scheme for the resolution of complaints in both the electricity and gas industries:
                                        1. whether the applicant has adequate funding to enable it to operate the scheme according to its purpose and in accordance with its rules:
                                          1. whether the applicant’s directors and senior managers are competent to manage a dispute resolution scheme:
                                            1. whether the rules of the scheme are adequate and comply with—
                                              1. the principles listed in subclause (2); and
                                                1. the requirements of clause 13(1).

                                                2. The principles are—

                                                3. accessibility:
                                                  1. independence:
                                                    1. fairness:
                                                      1. accountability:
                                                        1. efficiency:
                                                          1. effectiveness.

                                                            Compare

                                                            6Minister must decide application for approval

                                                            1. After considering an application made under clause 4, the Minister may—

                                                            2. approve the scheme as the approved scheme; or
                                                              1. decline the application.

                                                                1. The Minister may only decide whether to approve the scheme or decline the application after consulting—

                                                                2. the Minister of Energy; and
                                                                  1. the Authority; and
                                                                    1. if an industry body is appointed under section 43ZL of the Gas Act 1992, that industry body; and
                                                                      1. any persons (or their representatives) that the Minister considers are likely to be substantially affected by the approval.

                                                                        1. A failure to consult with the persons referred to in subclause (2)(d) does not affect the validity of any approval of the scheme.

                                                                        2. The Minister may approve a scheme if there is already another approved scheme, but in that case the approval does not take effect until the approval of the other scheme is withdrawn.

                                                                        Compare

                                                                        7Decision must be notified and publicised

                                                                        1. The Minister must, as soon as practicable after deciding an application,—

                                                                        2. notify the applicant of the decision; and
                                                                          1. if the decision is to approve the application, ensure that the approval is publicised.

                                                                            Compare

                                                                            8Rules of approved scheme not to change without Ministerial approval

                                                                            1. The rules of the approved scheme must not be changed unless the Minister approves the change.

                                                                            2. If the provider of the approved scheme notifies the Minister of a proposed rule change, the rule change is deemed to be approved by the Minister unless, within 45 days after the date of notification, the Minister declines approval.

                                                                            3. The Minister may decline approval for a rule change only on the grounds that, if the rules were changed as proposed, they would not comply with the principles listed in clause 5(2) or would not comply with clause 13.

                                                                            Compare

                                                                            9Notice of intention to withdraw approval

                                                                            1. If the Minister proposes to withdraw approval for an approved scheme, the Minister must notify the provider.

                                                                            2. The Minister's notice must—

                                                                            3. state that the Minister intends to withdraw the scheme's approval; and
                                                                              1. identify which of the grounds described in subclause (3) apply; and
                                                                                1. state why the Minister considers those grounds apply; and
                                                                                  1. identify the notice period, which must be at least 3 months, during which the provider may object, under clause 10, to the intended withdrawal.

                                                                                    1. The only grounds for withdrawing approval are as follows:

                                                                                    2. the scheme is not, or is no longer, capable of meeting the purpose of the dispute resolution scheme as set out in clause 1:
                                                                                      1. there has been a loss of broad support for the scheme:
                                                                                        1. the scheme is no longer an integrated scheme for the resolution of complaints in both the electricity and gas industries:
                                                                                          1. the scheme is not, or is no longer, capable of resolving indemnity disputes:
                                                                                            1. there has been a failure to comply with the rules of the scheme:
                                                                                              1. the provider has not publicised the rules as required by clause 13(2):
                                                                                                1. the provider has not supplied the Minister with 1 or more of the following:
                                                                                                  1. an annual report as required by clause 16:
                                                                                                    1. any further information requested by the Minister under clause 17:
                                                                                                      1. a report of an independent review as required by clause 15:
                                                                                                      2. the provider has not notified the Minister before changing the rules of the scheme as required by clause 8:
                                                                                                        1. the scheme no longer satisfies the principles in clause 5(2).

                                                                                                          1. The Minister's notice may require the provider to—

                                                                                                          2. notify all members of the Minister's intention to withdraw the scheme's approval; or
                                                                                                            1. provide the Minister with a list of the names and business addresses of current members so that the Minister can, if the Minister wishes, notify all members of the Minister's intention to withdraw the scheme's approval.

                                                                                                              Compare
                                                                                                              Notes
                                                                                                              • Schedule 4 clause 9(3)(ca): inserted, on , by section 16 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).

                                                                                                              10Objection to withdrawal of approval

                                                                                                              1. During the notice period, the provider may object (with reasons) to the proposed withdrawal of approval.

                                                                                                              2. The Minister must consider any objection that is received before the end of the notice period.

                                                                                                              Compare

                                                                                                              11Withdrawal of approval

                                                                                                              1. If the Minister has given notice of intention to withdraw approval, the Minister may withdraw the approval at any time after the expiry of the notice period.

                                                                                                              2. When considering whether to withdraw approval, the Minister must have regard to the considerations referred to in clause 5(1) in light of the principles listed in clause 5(2).

                                                                                                              3. The Minister must withdraw the approval of an approved dispute resolution scheme if the provider so requests, in which case the scheme is no longer approved from the date that is 3 months after the date of withdrawal of approval.

                                                                                                              Compare

                                                                                                              12Effect of withdrawal of approval

                                                                                                              1. On the date that the withdrawal of an approved scheme’s approval takes effect, the members of the scheme become members of—

                                                                                                              2. any other approved scheme that is approved with effect from that date; or
                                                                                                                1. the regulated scheme.

                                                                                                                  Compare

                                                                                                                  13Rules of approved scheme

                                                                                                                  1. The rules of the approved scheme must provide for, or set out, with respect only to its function of dealing with complaints made under section 95 of this Act or section 43E of the Gas Act 1992, the following:

                                                                                                                  2. that any person (including consumers, potential consumers, and owners and occupiers of land, but excluding members of the scheme) may make complaints for resolution by the scheme:
                                                                                                                    1. how complaints to be dealt with by the scheme may be made:
                                                                                                                      1. the kinds of complaints that the scheme will deal with:
                                                                                                                        1. a period after which the scheme, if asked by a complainant, must investigate a complaint that has been made directly to a member:
                                                                                                                          1. that complaints about members must be investigated in a way that is consistent with the rules of natural justice:
                                                                                                                            1. that any information may be considered in relation to a complaint, and any inquiry may be made, that is fair and reasonable in the circumstances:
                                                                                                                              1. the kinds of remedial action that the scheme may require members to take in order to resolve complaints (for example, a requirement to compensate a complainant up to a certain amount stated in the rules, or to change a system):
                                                                                                                                1. that the scheme will not charge a fee to any complainant to investigate or resolve a complaint:
                                                                                                                                  1. that a resolution of a complaint about a member of the scheme is binding on the member concerned:
                                                                                                                                    1. that a resolution of a complaint about a member of the scheme is binding on the complainant concerned if the complainant accepts the resolution or has agreed to be bound by a final decision and a final decision is made:
                                                                                                                                      1. that the scheme may cease investigating and resolving a complaint if the complainant takes alternative court action against the member:
                                                                                                                                        1. that, if a complainant accepts a resolution or has agreed to be bound by a final decision and a final decision is made, the complainant may not seek or obtain any other resolution of the complaint through any court or tribunal:
                                                                                                                                          1. how the provider will promote knowledge about, and accessibility to, the scheme to persons entitled to make a complaint.

                                                                                                                                            1. The rules of the approved scheme must provide for, or set out, rules and procedures for dealing with indemnity disputes.

                                                                                                                                            2. The responsible person of the approved scheme must publicise the rules.

                                                                                                                                            Compare
                                                                                                                                            Notes
                                                                                                                                            • Schedule 4 clause 13(1): amended, on , by section 16 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).
                                                                                                                                            • Schedule 4 clause 13(1A): inserted, on , by section 16 of the Consumer Guarantees Amendment Act 2013 (2013 No 144).

                                                                                                                                            14List of members

                                                                                                                                            1. The provider of the approved scheme must maintain and publicise a list of current members of the scheme.

                                                                                                                                            Compare

                                                                                                                                            15Independent 5-yearly review

                                                                                                                                            1. The provider of the approved scheme must ensure that, at least once every 5 years, an independent review of the scheme is carried out and the report of the review is provided to the Minister within 3 months of its completion.

                                                                                                                                            Compare

                                                                                                                                            16Annual report

                                                                                                                                            1. The provider of the approved scheme must prepare an annual report containing information, identified by the Minister by notice to the scheme, about the scheme in relation to that financial year.

                                                                                                                                            2. The report must be supplied to the Minister within 3 months after the end of the financial year applying to the scheme.

                                                                                                                                            3. The provider must publicise the annual report.

                                                                                                                                            Compare

                                                                                                                                            17Provision of information

                                                                                                                                            1. The provider of the approved scheme must, on request by the Minister, provide information on the following:

                                                                                                                                            2. matters relating to the most recent annual report:
                                                                                                                                              1. the scheme's compliance with the principles listed in clause 5(2).

                                                                                                                                                1. Nothing in this clause or clause 16 authorises a breach of the Privacy Act 2020 or any obligation of confidentiality.

                                                                                                                                                Compare
                                                                                                                                                Notes
                                                                                                                                                • Schedule 4 clause 17(2): amended, on , by section 217 of the Privacy Act 2020 (2020 No 31).

                                                                                                                                                18Regulations setting out rules of regulated schemes

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

                                                                                                                                                2. The regulations must—

                                                                                                                                                3. set out the rules of the scheme, which must comply with clause 13; and
                                                                                                                                                  1. be consistent with the purpose in clause 1.

                                                                                                                                                    1. Before making a recommendation for the regulations, the Minister must consult with—

                                                                                                                                                    2. the Minister of Energy; and
                                                                                                                                                      1. the Authority; and
                                                                                                                                                        1. any persons or their representatives that the Minister considers are likely to be substantially affected by the recommendation.

                                                                                                                                                          1. However, a failure to consult with the persons referred to in subclause (3)(c) does not affect the validity of the regulations.

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

                                                                                                                                                          Notes
                                                                                                                                                          • Schedule 4 clause 18 heading: amended, on , by section 5 of the Electricity Industry Amendment Act 2012 (2012 No 102).
                                                                                                                                                          • Schedule 4 clause 18(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

                                                                                                                                                          19Order in Council appointing provider of regulated scheme

                                                                                                                                                          1. The Governor-General may, by Order in Council made on the recommendation of the Minister, appoint a person to provide the regulated scheme.

                                                                                                                                                          2. The Minister may make a recommendation under this clause only if the Minister is satisfied that the person appointed as the provider—

                                                                                                                                                          3. is a formally constituted dispute resolution body; and
                                                                                                                                                            1. is capable of providing the scheme in accordance with the purpose in clause 1 and the rules of the scheme.

                                                                                                                                                              1. Before making a recommendation for an Order in Council, the Minister must consult with the Minister of Energy.

                                                                                                                                                              2. An order under subclause (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                                                                                                                                                              Notes
                                                                                                                                                              • Schedule 4 clause 19(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

                                                                                                                                                              20Notice of intention to revoke appointment

                                                                                                                                                              1. An appointment made by Order in Council may not be revoked on the ground that the Minister has approved, or intends to approve, an approved scheme under clause 6 unless the Minister has given the scheme provider at least 3 months' notice in writing of the intention to revoke the appointment.

                                                                                                                                                              2. Nothing in this clause limits the grounds on which the Minister may otherwise recommend the revocation of any appointment.