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• Regulatory Framework

• Government Policy Statement

1. The Government has amended the Electricity Act 1992 to set the following principal objectives for the Electricity Commission:

• ensure that electricity is produced and delivered to all classes of consumers in an efficient, fair, reliable, and environmentally sustainable manner and
• promote and facilitate the efficient use of electricity.

2. Consistent with those principal objectives, the Commission is required by the Act to seek to achieve the following specific outcomes:

1. energy and other resources are used efficiently
2. risks (including price risks) relating to security of supply are properly and efficiently managed
3. barriers to competition in electricity are minimised for the long-term benefit of end-users
4. incentives for investment in generation, transmission, lines, energy efficiency, and demand-side management are maintained or enhanced and do not discriminate between public and private investment
5. the full costs of producing and transporting each additional unit of electricity are signalled
6. delivered electricity costs and prices are subject to sustained downward pressure
7. the electricity sector contributes to achieving the Government's climate change objectives by minimising unnecessary hydro spill, efficiently managing transmission and distribution losses and constraints, promoting demand-side management and energy efficiency, and removing barriers to investment in new generation technologies, renewables and distributed generation.