The Commission, pursuant to section 81 of the Electricity Industry Reform Act 1998 ("the EIR Act"), exempts Eastland Network Limited from the application of section 17 of the EIR Act in relation to a prohibited cross involvement in an electricity supply business, comprising 6.5 megawatts of containerised mobile diesel generation
sets and 4.88 megawatts of generation from the Waihi Hydro Scheme.
The exemption is subject to the following terms and conditions:
(a) Eastland Network Limited will continue to use all reasonable endeavours to cease its involvement in the Waihi Hydro Scheme by securing the prompt sale of the Waihi Hydro Scheme.
(b) Eastland Network Limited will provide the Commerce Commission with monthly written reports, beginning one month after the date of this decision, on the progress it is making to achieve compliance with (a) above.
(c) The exemption expires at the earlier of midnight
on 17 July 2004 or the date at which the proposed legislative changes with respect to the increase
in distributed generation from 5 megawatts to
25 megawatts permitted under section 5 (2) (e) (i) of the EIR Act announced by the Minister of Energy come into force.
The Commission may vary or revoke this exemption in accordance with section 81 (5) of the EIR Act.
The exemption takes effect from the date of publication of this notice in the New Zealand Gazette.