This notice of a recommendation and assessment concerning the Electricity Governance Regulations 2003 (“Regulations”), proposed Electricity Governance Amendment Regulations 2005, is issued by the Electricity Commission (“Commission”), established under the Electricity Act
1992 (“Act”), pursuant to section 172E (2) (c) of that Act.
Section 172E (2) (c) provides that, no later than 10 working days after making a recommendation concerning the Regulations to the Minister of Energy, the Commission
must publicise the recommendation and the assessment completed under section 172F of the Act.
Recommendation
On 23 November 2005, the Commission made a recommendation that the Regulations be amended by inserting new Regulations 53A, 53B and 53C (which relate
to force majeure for ancillary service agents), and new Regulation 115A (which relates to limitation of liability for ancillary service agents).
Recommended Amendment to the Regulations
The recommended amendment to the Regulations will:
(a) limit the liability of a person who provides an ancillary service, as defined in the Rules (known
as an “ancillary service agent” or “ASA”), in its capacity as an ASA, under Part G and Rule 8 of Technical Code B of Schedule C3 of Part C of the Electricity Governance Rules 2003 (“the Rules”) to:
(i) in respect of any one event or series of closely related events arising from the same cause or circumstance, the lesser of $100,000.00 or 5% of the expected annual fees for the relevant
type of ancillary service; and
(ii) in respect of all events occurring in the
12 month period ending with the breach,
the lesser of $300,000.00 or 20% of the expected annual fees for the relevant type of ancillary service; and
(b) relieve an ASA of its obligations to perform as an ASA under the Regulations and Rules if the ASA is unable to perform those obligations as a result of
a force majeure event.
A copy of the Commission’s recommendation and assessment is available, at no cost, on the Commission’s web site:
http://www.electricitycommission.govt.nz/rulesandregs/regchanges/
Dated at Wellington this 23rd day of November 2005.
For and on behalf of the Electricity Commission:
ROY HEMMINGWAY, Chair.