Meridian Energy Limited
[ Last Updated 15 November 2005 ]
Date Received: 2004-02-10
Original version: Transitional Enforcement of Transpower's Pricing: Submissions: No. 06: Meridian Energy Limited [78KB PDF]
Contents
Meridian Energy Limited
Level 2, 15 Allen Street
PO Box 10 840
Wellington, New Zealand
Phone +64-4 381 1200
Fax +64-4 381 1201
www.meridianenergy.co.nz
10 February 2004
Erin Woolley
Policy Analyst
Resources and Networks Branch
Ministry of Economic Development
P O Box 1473
WELLINGTON
Dear Erin
Proposal Regarding Transpower's Charges for Grid Connection - Transitional Enforcement of Transpower's Pricing
Meridian welcomes the opportunity to make this submission on the proposal to recommend regulations to enforce Transpower's current pricing methodology as a transitional measure until Part F of the rules have been promulgated and the Electricity Commission approves a pricing methodology.
Meridian is responding to this opportunity to comment as a generator and as a counterparty to the Tiwai Point Connection Contract.
Contents of the Proposed Regulation
We note that s19 which is in effect the predecessor of this proposed regulation was drafted very carefully to reflect the policy that it should not impose anything other than a price on those customers who have been unable to agree terms and conditions with Transpower.
It is vital that the proposed regulation maintains this position. There must be no room for argument that it does anything more in a "contractual" sense than impose, through law, an obligation to pay a referenced price without prejudice to the payer's wider position with respect to Transpower.
Potential for Retrospect Element in the Regulation / Rule
Meridian notes that the current Electricity Act provides the regulation making powers needed to enable the proposal by officials.
We also note it may be considered that this regulation needs to be made retrospective. There is, of course, a general presumption against legislation having retrospective effect.1
Further, pursuant to Parliament's Standing Orders, the Regulations Review Committee can draw a regulation to the attention of the House where it "is retrospective where this is not expressly authorised by the empowering statute".2 There is nothing in the Electricity Act 1992, and sections 172D and H in particular, that expressly, or indeed impliedly, authorises the promulgation of retrospective regulations. The appropriateness of retrospectivity would therefore need to be carefully considered by officials. In this regard it is noted that in the absence of a statutory obligation to pay a referenced price, Meridian and presumably other Transpower customers who have not agreed price or terms and conditions with Transpower will need to preserve their legal positions under quantum meruit in accordance with the decision in Transpower vs Meridian.
Proposal to Change Transpower's Pricing Year from 1 April to 1 July
Meridian submits there is no real need to change the pricing year for Transpower to 1 July to align with the Commerce Commission's annual assessment period. The Commerce Commission is using the financial reporting period as the annual assessment period, as with electricity lines companies.
Electricity lines companies mostly have a 1 April to 31 March annual reporting period and this is the annual assessment period being used by the Commerce Commission. Electricity lines companies do not all have the same pricing year. Unison is currently proposing a price change on 1 March, Aurora 1 May or 1 October, PowerNet on 1 October while price changes from others appear to be random and do not correlate with the annual reporting or assessment period.
Further, customers of Transpower will incur additional compliance costs from the change in pricing year. We can provide further information if desired.
If you have any queries please contact me.
Yours sincerely
Gillian Blythe
Regulatory Strategy Manager
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