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Electricity Industry Act 2010

Miscellaneous - State-owned enterprise asset reconfiguration and miscellaneous matters - Specific authorisations for purposes of Commerce Act 1986

130: Specific authorisations for purposes of Commerce Act 1986

You could also call this:

“Allowed actions in the electricity industry that don't break competition rules”

You need to know about certain actions that are allowed under the Commerce Act 1986. These actions are okay even if they might seem like they go against normal competition rules.

The Electricity Authority, the Rulings Panel, and people in the electricity industry can do things that are necessary to follow the rules in the Electricity Industry Act 2010. This includes enforcing the rules and making sure everyone follows them.

Government ministers who own shares in electricity companies can give directions under this part of the law. State-owned electricity generators, and the people who work for them, can do what they need to follow these directions or to carry out contracts that come from these directions.

People in the electricity industry are also allowed to create and run a market where they can trade financial contracts related to electricity prices.

If a state-owned electricity generator needs to transfer some of its assets because of a direction from the government, they don’t have to worry about a specific rule in the Commerce Act that usually applies to mergers and acquisitions.

All of these actions are specially allowed, even if they might not normally be okay under competition laws.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3019743.

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Part 5 Miscellaneous
State-owned enterprise asset reconfiguration and miscellaneous matters: Specific authorisations for purposes of Commerce Act 1986

130Specific authorisations for purposes of Commerce Act 1986

  1. The following are specifically authorised for the purpose of section 43 of the Commerce Act 1986:

  2. anything done or omitted by the Authority, the Rulings Panel, or an industry participant that is reasonably necessary to comply with, enforce, or otherwise administer this Act, the regulations, or the Code; and
    1. the giving by the shareholding Ministers of a direction under this subpart; and
      1. anything done or omitted by a State generator, or a director or employee of a State generator, if the act or omission is reasonably necessary to—
        1. comply with a direction given under this subpart; or
          1. give effect to a contract entered into pursuant to a direction under section 117(2)(d); and
          2. anything done or omitted to be done by an industry participant for the purpose of developing and operating an active market for trading financial hedge contracts for electricity.

            1. Section 47 of the Commerce Act 1986 does not apply to any transfer of assets undertaken by a State generator pursuant to a direction given under section 117(2)(b) or (c).

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