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Electricity Industry Act 2010

Miscellaneous - State-owned enterprise asset reconfiguration and miscellaneous matters - Asset reconfiguration provisions in respect of Waitaki Power Scheme

124: Reconfiguration of existing agreements

You could also call this:

“The government can ask power companies to change their deals to help reach certain goals”

The government can tell Meridian and Genesis to change their existing agreements. This is to help achieve certain goals. Here’s what can happen:

You might be asked to make new agreements or change old ones. The government will set dates for when things need to be done.

If you have an existing agreement, you’ll need to choose what you want to do. You can sign a new agreement, keep the old one, or end it completely.

If you choose a new agreement, it will replace the old one.

If new agreements aren’t made in time, the government can decide who keeps which agreements. They might give some to Meridian, some to Genesis, or have them share or split agreements.

If Meridian keeps an agreement, it stays the same as before. If Genesis takes over an agreement, they get all of Meridian’s rights and responsibilities.

Sometimes, Meridian and Genesis might share an agreement. Other times, they might split it up between them.

If you’re not Meridian or Genesis, and you don’t like these changes, you can choose to end your part in the agreement.

When we talk about ‘rights and obligations’, we mean all the things you’re allowed to do and all the things you have to do in an agreement.

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123: Existing agreements with other parties in respect of Waitaki Power Scheme, or

"Rules about old agreements for the Waitaki Power Scheme"

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Part 5 Miscellaneous
State-owned enterprise asset reconfiguration and miscellaneous matters: Asset reconfiguration provisions in respect of Waitaki Power Scheme

124Reconfiguration of existing agreements

  1. The shareholding Ministers may include, in a direction given under section 117(2)(b), 1 or more of the following:

  2. a direction requiring Meridian and Genesis to negotiate the retention or transfer, or the sharing or splitting (as the case may be), of the existing agreements in a way that meets the purposes set out in section 120:
    1. a direction requiring either or both of Meridian and Genesis to offer to any other parties that have rights or obligations under the existing agreements (third parties) 1 or more replacement contracts that are necessary to meet the purposes set out in section 120:
      1. dates by which things must be completed, for example,—
        1. dates by which replacement contracts must be offered:
          1. dates by which choices must be made under subsection (2) or (9).

          2. A third party that has rights or obligations under an existing agreement must choose, by the date specified under subsection (1)(c),—

          3. to enter into any replacement contract that is offered; or
            1. for the existing agreement to continue in accordance with a direction to be given under subsection (4); or
              1. to terminate the existing agreement.

                1. If a third party chooses to enter into any replacement contract that is offered, the existing agreement ceases to have effect to the extent that it is replaced by the replacement contract.

                2. If a replacement contract has not been entered into by the date specified in a direction under subsection (1)(c), the shareholding Ministers may give to the boards of Meridian and Genesis a further direction specifying—

                3. which existing agreements Meridian must remain a party to; and
                  1. which existing agreements Genesis must become a party to; and
                    1. which agreements are to be shared between the generators by Genesis becoming a party to the agreements in addition to Meridian; and
                      1. which agreements are to be split, by Meridian remaining a party in relation to certain provisions and Genesis replacing Meridian as a party in relation to other provisions.

                        1. If a direction is given under subsection (4)(a) in respect of an existing agreement, Meridian and the third parties to the agreement remain subject to the agreement as if this Act had not been passed.

                        2. If a direction is given under subsection (4)(b) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the rights and obligations of Genesis on the date specified in the direction.

                        3. If a direction is given under subsection (4)(c) in respect of an existing agreement, all rights and obligations of Meridian under the agreement become the joint and several rights and obligations of Meridian and Genesis on the date specified in the direction.

                        4. If a direction is given under subsection (4)(d) in respect of an existing agreement, on the date specified in the direction the rights and obligations of Meridian under the agreement remain with Meridian except to the extent that any of those rights and obligations are transferred to Genesis.

                        5. However, a party to an existing agreement in respect of which a direction is given under subsection (4) (other than Meridian or Genesis) may terminate the party's involvement in the agreement, by notice in writing to the Minister, Meridian, and Genesis given by the further date specified under subsection (1)(c).

                        6. In this section, rights and obligations includes entitlements and liabilities.