Plain language law

New Zealand law explained for everyone

Electricity Industry Act 2010

Electricity industry governance - Electricity Industry Participation Code - Other content

44A: Distribution agreements

You could also call this:

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

The law says that the Code can make distributors and other industry participants sign agreements about connecting to and using the distributor’s network. These are called distribution agreements.

The Code can set default terms and conditions for these agreements. These terms might be about quality or information requirements.

If both parties agree, they can change some of the default terms. But they can only do this if the Code allows it.

A distribution agreement is legally binding, just like a contract that both parties freely agreed to sign.

If the parties don’t sign an agreement when the Code says they should, the default terms in the Code will still apply to them. These terms will be just as binding as if they were in a signed agreement.

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 It might be out of date or be missing some parts.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=LMS747948.

Topics:
Business > Industry rules Environment and resources > Climate and energy
Previous

44: Transmission agreements, or

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

Next

44B: Minister may amend Code to include specified matters, or

"Minister can update electricity rules to make things fairer for everyone"

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

44ADistribution agreements

  1. Without limiting section 32, the Code may require a distributor and 1 or more other industry participants to enter into 1 or more agreements for connection to, and use of, the distributor’s network (a distribution agreement).

  2. The Code may prescribe default terms and conditions that are deemed to be included in distribution agreements, including terms and conditions that relate to quality or information requirements.

  3. The parties to a distribution 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. A distribution 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.

  5. If the parties do not comply with a requirement in the Code to enter into 1 or more distribution agreements, the default terms and conditions in the Code are binding on the parties and enforceable as if they were set out in a distribution agreement.

Notes
  • Section 44A: inserted, on , by section 20 of the Electricity Industry Amendment Act 2022 (2022 No 46).