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Commerce Act 1986

Regulated goods or services - Electricity lines services - Imposition of regulation under this Part

54H: How exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers

You could also call this:

"What happens when a consumer-owned electricity supplier no longer follows special rules"

Illustration for Commerce Act 1986

If you get electricity from a consumer-owned supplier, it is exempt from certain rules. But it can lose this exempt status. The Governor-General can declare that this section applies, and then the supplier will have to follow the rules. You can find more information about when a supplier is consumer-owned in section 54D. The Minister can recommend this if the Commission says the supplier is no longer consumer-owned or if the Commission thinks the rules should apply to the supplier.

If a supplier is no longer consumer-owned, it must tell the Commission within 10 working days. The Commission can recommend that the rules apply to a supplier if it gets a petition from enough consumers. A domestic consumer is someone who gets electricity for their home, as defined in section 5 of the Electricity Industry Act 2010.

The Governor-General can make an Order in Council to apply the rules to a supplier. This Order in Council is secondary legislation, which means it is a type of law, and you can learn more about it in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1940043.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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54G: Certain electricity lines services are also subject to default/customised price-quality regulation, or

"Some electricity lines services have rules about price and quality to ensure you get a good service."

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54I: Commission must make section 52P determination specifying how subpart applies, or

"The Commission decides how rules apply to electricity line companies."

Part 4Regulated goods or services
Electricity lines services: Imposition of regulation under this Part

54HHow exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers

  1. Electricity lines services that are supplied by a supplier that is consumer-owned cease to be exempt for the purpose of section 54G (and therefore become subject to default/customised price-quality regulation under this Part) if the Governor-General, by Order in Council, declares that this section applies.

  2. The Minister may make a recommendation only if the Minister is satisfied that either—

  3. the Commission has advised the Minister that a supplier has ceased to be consumer-owned within the meaning of section 54D; or
    1. the Commission has recommended to the Minister that the purpose of this Part would be better met if price-quality regulation were imposed on the supplier under this Part.

      1. A supplier must give notice in writing to the Commission within 10 working days after becoming aware that it has ceased to be consumer-owned.

      2. The Commission may make a recommendation under subsection (2)(b) only following consideration of a petition made by 1 or more of the following:

      3. 15% of the persons who are domestic consumers of the supplier as at the date of the petition who are eligible to vote in elections for trustees of the customer trust or community trust, or for members of the committee of shareholders of the customer co-operative:
        1. 20% of the persons who are domestic consumers of the supplier as at that date who are not eligible to vote in elections for trustees of the customer trust or community trust, or for members of the committee of shareholders of the customer co-operative:
          1. 25% of the persons who are non-domestic consumers (either by number or by consumption of that class of consumer) of the supplier as at that date.

            1. In this section, domestic consumer has the same meaning as in section 5 of the Electricity Industry Act 2010.

            2. If exact figures are not available as to the number of persons in a class referred to in subsection (3), the Commission may rely on any estimate that the Commission considers to be a reasonable estimate.

            3. Petition means a petition to the Commission seeking the application of price-quality regulation to all or any of the electricity lines services of the relevant supplier, and that records the signatures of the signatories.

            4. The Governor-General may, on the recommendation of the Minister, make an Order in Council in accordance with this section.

            5. An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

            Notes
            • Section 54H: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).
            • Section 54H(2A): inserted, on , by section 152(1) of the Electricity Industry Act 2010 (2010 No 116).
            • Section 54H(3)(a): substituted, on , by section 152(2) of the Electricity Industry Act 2010 (2010 No 116).
            • Section 54H(3)(b): substituted, on , by section 152(2) of the Electricity Industry Act 2010 (2010 No 116).
            • Section 54H(3)(c): substituted, on , by section 152(2) of the Electricity Industry Act 2010 (2010 No 116).
            • Section 54H(3A): inserted, on , by section 152(3) of the Electricity Industry Act 2010 (2010 No 116).
            • Section 54H(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).