Facilitating Investment in Generation by Lines Companies
Amendments have been made to the Electricity Industry Reform Act 1998 in 2008 to relax the rules restricting cross-involvement between electricity lines businesses and supply businesses.
The amendments are designed to facilitate lines companies’ investment in renewable generation. The amendments:
- allow lines companies to generate and retail without restriction outside their own lines area.
- allow lines companies to sell up to 100% of the nominal output capacity of connected generation to customers connected to lines, and trade in financial hedges to manage risk
- Reduce the costs of compliance with arm’s-length rules and corporate separation requirements by raising the threshold for these requirements from 5 MW to 10 MW and relaxing some arm’s length rules.
- Require lines companies to have use-of-systems agreements when selling electricity.
Documents relating to the development of amendments are as follows:
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