| 13 June 2000 |
Electricity Industry Inquiry
The Government announced a Ministerial inquiry into the electricity industry on 3 February 2000. The Terms of Reference for the Inquiry chaired by the Honourable David Caygill required it to consider what changes were needed to ensure New Zealanders have the best possible electricity system.
The Ministerial Inquiry into the Electricity Industry reported to the Government in June 2000. The Inquiry panel supported continuation of the self-regulation approach, but recommended further evolution of the existing arrangements in the electricity industry as well as introduction of targeted price control for electricity lines businesses. |
3 October 2000 |
Power Package Released
The Government's decisions on electricity sector reform were announced in the "Power Package". The Government stated that it favoured industry solutions where possible with regulation only where necessary. A draft Government Policy Statement was released outlining the Government's expectations for further evolution of the self-regulatory arrangements in the electricity industry. |
3 October 2000 |
Energy Policy Framework Released
A revised Energy Policy Framework was released. The Government's overall objective is: "to ensure the delivery of energy services to all classes of consumers in an efficient, fair, reliable and sustainable manner." |
October 2000 |
Electricity Governance Establishment Committee established
An Electricity Governance Establishment Project was established, and a committee appointed in October 2000 in response to a request from the Government that the industry put in place a single self-governance structure. The Committee's aim was to bring together the three existing industry governance structures (New Zealand Electricity Market (NZEM), Multilateral Agreement on Common Quality Standards (MACQS) and Metering and Reconciliation Information Agreement (MARIA)), to establish an Electricity Governance Board. |
7 December 2000 |
Government Policy Statement Released
A "Government Policy Statement (GPS): Further Development of New Zealand's Electricity Industry" was released in December 2000 and transmitted to the Commerce Commission under section 26 of the Commerce Act. This Statement required the electricity sector to establish a new electricity governance board to develop rules for the industry in areas specified, consistent with the Guiding Principles outlined. The GPS was revised in February 2002. |
7 August 2001 |
Electricity Industry Bill passed
The Electricity Industry Bill 2000 (tabled in Parliament on 28 November 2000) was enacted. This was an omnibus bill to amend various Acts to give effect to the Government's response to the recommendations of the Ministerial Inquiry. The Bill amended four statutes (the Ministry of Energy Abolition Act 1989, the Commerce Act 1986, the Electricity Act 1992, and the Electricity Industry Reform Act 1998). |
11 December 2001 |
Post-Winter Electricity Supply Shortages Review
The Minister of Energy announced the outcome of a review of the way New Zealand's electricity system functioned over the winter of 2001. |
January 2002 |
Electricity and Gas Complaints Commission
At the Government's request an Electricity Complaints Commission was established to provide electricity consumers with assistance in resolving complaints about electricity lines or retail companies. In 2005, the Commission was expanded to cover the Gas sector also, and became the Electricity and Gas Complaints Commission. The Commission is funded by member companies but remains independent of the industry. The Commission does not charge complainants for any assistance provided. |
11 December 2002 |
Government Policy Statement on Financial Transmission Rights Released
The Government released a Policy Statement setting out its expectations of the electricity industry to make new arrangements to manage wholesale electricity price risk caused by transmission line congestion. It established a set of guiding principles and a framework for the development of financial transmission rights (FTRs), including an auction market for trading them. It also specified how the regime would be governed.
(This Policy Statement has been superseded by the May 2008 Government Policy Statement on Electricity Governance which requires the Electricity Commission to complete work on transmission risk management, but does not specify the instrument that must be used.) |
March-June 2003 |
Winter Supply Shortage
An electricity savings campaign was implemented with the assistance from the electricity industry's Grid Security Committee and Winter Power Group. The Government set a 15 percent electricity savings target for the government sector in order to provide leadership in electricity savings to help reduce the risk of winter power shortages. The public was asked to achieve savings of 10%. |
20 May 2003: |
Government Announces Establishment of an Electricity Commission
The Government announced an Electricity Commission would be established to take over governance of the electricity industry. |
29 July 2003 |
New Power Plant for Security of Supply
The Government announced that a new 155 megawatt oil-fired power plant would be built a Whirinaki, Hawkes Bay before winter 2004 to help provide increased certainty of electricity supply. It would provide reserve generation for use during very dry periods when hydro lake inflows were abnormally low. It would also provide reserve generation to cover major breakdowns in other generating plant. The plant was commissioned on 1 June 2004. |
14 September 2003 |
Further Government decisions on Reserve Energy
The Government announced details of the new reserve generation policy. The Electricity Commission would be expected to contract for low fixed cost options for reserve energy, which will tend to have high variable costs. New generation plant and plant that would otherwise be mothballed or retired would both be eligible to be considered for reserve energy. In addition, the Commission could contract with large electricity users for demand reductions as part of the reserve energy portfolio. |
14 September 2003 |
Electricity Commission Established and Draft Government Policy Statement on Electricity Governance Released
A revised draft Government Policy Statement on Electricity Governance, setting out key improvements to the electricity industry that the Government expected the Commission to oversee in addition to its routine governance responsibilities, was released for consultation The Electricity Commission was established and began operations on 14 September 2003. |
18 December 2003 |
Electricity (Hazards from Trees) Regulations 2003
New regulations governing the trimming of trees near power lines came into effect. These were designed to promote safety and help prevent power outages and fires caused by problems with trees and power lines. |
1 March 2004 |
New Electricity Market Arrangements Established Under Electricity Governance Rules and Regulations
The Electricity Commission took over responsibility for operating the electricity market under the Electricity Governance Regulations and Rules 2003 enacted in December 2003. The former industry operations under the NZEM and MARIA were terminated. |
28 May 2004 |
New Regulatory Framework for Transmission Investment and Pricing
A new regulatory framework for transmission investment and pricing announced in April 2004 came into effect on 28 May 2004. The framework becomes part of the Electricity Governance Regulations and Rules, under the responsibility of the Electricity Commission. |
12 August 2004 |
Risk-Sharing Agreement with Genesis Energy to Facilitate Construction of Combined Cycle Plant at Huntly
The Government announced that it would facilitate the development of Genesis Energy's 385 MW combined cycle gas turbine plant (known as e3p) at Huntly by agreeing to share a limited amount of risk with Genesis around the long term supply of gas, as a one-off arrangement. This commitment ensured that Genesis Energy could proceed with the development within normal commercial parameters. |
1 October 2004 |
Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004
New regulations came into force compelling all electricity retailers to make available a domestic tariff, the fixed charges portion of which must not exceed 30 cents per day excluding GST. This tariff would benefit consumers who used less than the average 8000 kWh of power per year. |
13 October 2004 |
Electricity and Gas Industries Bill Passed
The Bill updated the Electricity Act 1992 to reflect the establishment of the Electricity Commission. This included updating the specific outcomes that the Government wants the Commission to achieve. It also provided improved regulation-making powers, in particular to enhance security of supply and consumer protection. The Bill also amended the Electricity Industry Reform Act 1998 to ease restrictions on lines companies owning electricity generation and amended the Commerce Act to clarify the interface between the functions and powers of the Commerce Commission and the Electricity Commission relating to control of electricity distribution businesses. |
13 October 2004 |
New Government Policy Statement on Electricity Governance Published
A new Government Policy Statement (GPS) on Electricity Governance covering the responsibilities and direction of the Electricity Commission was published. This GPS superseded the GPS released in December 2000 and the February 2002 revision. |
August 2005 |
Resource Management and Electricity Legislation Amendment Act Passed
This Amendment Act improved the Resource Management Act 1991 and made amendments to the Electricity Act 1992 to improve the quality of decisions and processes by increasing certainty and by reducing delays, costs and incorrect use of processes, while ensuring appropriate public participation and the meeting of environmental objectives. |
7 August 2006 |
Investment Regime for Transmission and Distribution Improved
Two Government policy statements to encourage investment in infrastructure were released.
A consultation draft of proposed amendments to the Government Policy Statement on Electricity Governance to emphasise the strategic importance attached to timely investment in transmission infrastructure (the final amended GPS was released in October 2006);
A published statement of the Government's economic policy under s26 of the Commerce Act, focused on the importance of regulated businesses such as Transpower and electricity lines businesses investing in new lines and other infrastructure. |
December 2006 |
Electricity Market Review Completed
A review of the electricity market, prompted by ongoing concerns about security of supply and price increases, was completed. The review concluded that the performance of electricity market arrangements had been mixed, and that while the current regulated market should be retained, a range of enhancements should be pursued to improve performance, particularly regarding security of supply. Legislative amendments to facilitate investment in generation by lines companies were also proposed. |
30 August 2007 |
Electricity Governance (Connection of Distributed Generation) Regulations Notified
New regulations providing a framework for connection of distributed generation were introduced to enable connection of distributed generation in conformity with consistent connection and operation standards. |
December 2007 |
Electricity Industry Reform Amendment Bill Introduced
The purpose of this Bill is to implement three main policy changes.
to make it easier for owners of lines businesses to sell the output of the generation they are permitted to own;
to narrow the scope of ownership separation requirements to focus on the geographic areas where lines and supply are co-located and there is potential for the exercise of market power and anti-competitive practices (by allowing owners of lines businesses to be involved in generation and retailing without limits outside of their lines area).
to amend the definition of renewables to include all renewables, to reflect the government's policy of encouraging the development of renewable energy (the previous definition excluded hydro and geothermal generation using traditional technologies).
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December 2007 |
Climate Change (Emissions Trading and Renewable Preference) Bill Introduced
The purpose of this Bill was to establish New Zealand Emissions Trading Scheme and to legislate for the government's preference for new renewable electricity generation.
The preference for new renewable energy generation would be achieved through a 10 year restriction on new baseload fossil-fuelled thermal electricity generation, except to the extent required to ensure the security of electricity supply. The Bill's provisions will apply to any proposed thermal generation above 10 megawatts that uses fossil fuels as more than 20 percent of its fuel source.
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13 March 2008 |
National Policy Statement on Electricity Transmission Issued
A National Policy Statement on Electricity Transmission requires decision makers to consider the national significance of a reliable and secure electricity supply - as well as adverse environmental effects - when they assess proposals for New Zealand's national transmission grid. It gives guidance to local governments across the country about the management and future planning of the national grid. |
March 2008 |
Commerce Amendment Bill Introduced
This Bill includes a new Part 4 of the Commerce Act, replacing Parts 4 and 4A of the current Act. The new Part 4 will put in place an improved regulatory regime for electricity lines businesses. |
April 2008 |
Electricity Act amended to enable regulation of Disconnection Practices
In response to concerns about the disconnection practices of electricity retailers, in July 2007 the Electricity Commission developed new guidelines for disconnections resulting from non-payment of electricity accounts, particularly where vulnerable consumers were affected. The Electricity Act 1992 was amended to ensure that the Government could, if necessary, regulate the content of the guidelines. |
April 2008 |
Electricity Low Fixed Charge Tariff Option Amended
The Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004 require networks and retailers to provide a low fixed charge tariff option to domestic consumers who consume less than 8,000 kWh of electricity per annum at their primary dwelling. The Electricity Act 1992 has been amended to provide for the definition of a "low-use consumer" to vary according to the particular area of New Zealand in which the consumer's domestic premises are situated, in order to take account of varying climatic conditions. Area boundaries are defined in amended regulations. |
9 May 2008 |
Continuance of Electricity Supply to Rural Consumers announced
Section 62 of the Electricity Act 1992 requires electricity lines companies to maintain services to those connections established as at 1 April 1993. This section was to expire and be deemed to be repealed on 31 March 2013. Lines built from April 1993 are not affected by this section of the Electricity Act 1992. The government announced in May 2008 that the obligation to supply electricity would continue to be protected beyond 2013. The obligation to supply would be able to be met by using lines or, where local consumers agree, alternative local generation. |
20 May 2008: |
New Government Policy Statement on Electricity Governance
The Minister of Energy released a revised Government Policy Statement on Electricity Governance. The GPS was revised and updated to be consistent with the New Zealand Energy Strategy and New Zealand Energy Efficiency and Conservation Strategy, and to reflect changes since the GPS was originally released in October 2004. |