On 17 July 2003, the Commerce Commission ("the Commission"), pursuant to section 81 of the Electricity Industry Reform Act 1998 ("the EIR Act"), exempted Eastland Networks Limited from the application of
section 17 of the EIR Act in relation to a prohibited
cross-involvement in an electricity lines business and 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 notice of exemption expires at the earlier of 12.00 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, unless any variation or earlier revocation in terms of section 81 (5) occurs.
The Commission, pursuant to section 81 (5) of the EIR Act, varies the exemption granted to Eastland Networks Limited on 17 July 2003, to extend the expiry date of the exemption to the earlier of 12.00 midnight on 16 July 2005 or the date at which the Electricity and Gas Industries Bill comes into force, unless any variation or earlier revocation in terms of section 81 (5) occurs.
The exemption is subject to the following terms and conditions:
(a) Eastland Networks 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 Networks Limited will provide the 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 12.00 midnight on 16 July 2005, or the date at which the Electricity and Gas Industries Bill comes 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 16 July 2004.