Rules 2003
1. Pursuant to section 172I of the Electricity Act 1992,
I notify the making of the Electricity Governance Rules 2003 ("the Rules") under section 172H of the Electricity Act 1992.
2. The empowering provisions for the electricity governance regulations in relation to which the Rules are made are sections 172D (2) (a), (b) and (e) of the Electricity Act 1992.
3. A brief description of the nature of the Rules follows:
The Rules provide for the establishment and operation of the wholesale electricity market, for quality and security standards relating to the transmission system, and related matters. In particular:
(a) Part A provides for definitions and general principles of construction.
(b) There is at present no Part B.
(c) Part C provides for:
? obligations of the system operator in relation to the real time delivery of common quality and dispatch, and a policy statement in relation to the system operator;
? obligations of asset owners, arrangements in respect of their assets, including equivalence arrangements and dispensations;
? ancillary service arrangements.
(d) Part D provides for metering arrangements.
(e) Part E provides for electricity registry information and customer switching.
(f) There is at present no Part F.
(g) Part G provides for the trading, pricing and reconciliation of wholesale electricity.
(h) Part H provides for the clearing and settlement of wholesale electricity sales and purchases, including ancillary services, and prudential requirements.
(i) Part I provides for interim dispensations in respect of Part C, certain existing common quality agreements, the process for transition from MARIA and NZEM, and for existing ancillary service arrangements.
(j) The core operational date for the new regime is
1 March 2004. However, various Parts of the Rules come into force on 16 February 2004 to facilitate trading on 1 March 2004 (see paragraph 4 below).
4. Parts A, G, H and I of the Rules come into force on
16 February 2004. Parts C, D and E of the Rules come into force on 1 March 2004.
5. Copies of the Rules may be inspected free of charge or purchased from the Electricity Governance Board (also known as the Electricity Commission), Level Seven, ASB Tower, 2 Hunter Street, Wellington, or from the offices of the Ministry of Economic Development, 33 Bowen Street, Wellington.
The Rules can also be viewed on the Electricity Governance Board web site:
http://www.electricitycommission.govt.nz
Dated at Wellington this 18th day of December 2003.
PETE HODGSON, Minister of Energy.
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