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Decisions

[ Last Updated 15 November 2005 ]

Also available as: Electricity Works above 110kV and 100MVA on Roads and Level Crossings: Decisions [79KB PDF]
(instructions for obtaining the Adobe Acrobat viewer)

Summary

1. The government considers that there would be benefits in removing the voltage and capacity threshold in sections 24 and 31 of the Electricity Act for electricity works suspended in the airspace above, or buried in the subsoil below, roads and level crossings. Amending sections 24 and 31 of the Electricity Act would remove a potential barrier to the timely development of electricity infrastructure, by giving electricity operators statutory rights of appeal and statutory timeframes regarding the conditions that road and rail controlling authorities may prescribe for high voltage works over or under roads and level crossings.

Background

2. Section 24 of the Electricity Act 1992 enables electricity operators to construct and maintain works in, on, along, over, across or under any road, subject to reasonable conditions prescribed by the road controlling authority or the owners of other utilities that may be affected. Section 31 of the Electricity Act contains similar provisions related to works in level crossings. However the provisions in sections 24 and 31 do not apply to works exceeding a voltage of 110kV and a capacity of 100MVA ("high voltage works"). Electricity operators may still negotiate with road and rail controlling authorities to construct high voltage works in roads and level crossings, but absent the rights of appeal and statutory timeframes that apply in respect of other electricity works.

3. The Ministry of Economic Development recently consulted on a proposal to extend the statutory provisions in sections 24 and 31 to high voltage works by repealing subsections 24(4) and 31(6). This document summarises the results of that consultation and sets out the government's decisions, including the next steps.

Submissions

4. Twenty nine submissions were received, principally from local authorities, Local Government New Zealand, Transit New Zealand, Railways Corporation of New Zealand, electricity operators, and Telecom New Zealand Ltd (as a telecommunications operator). Some local authorities did not make a formal submission but noted that the proposal did not materially affect them. A summary of the submissions is attached.

5. Many submissions supported the proposal. However, many submissions expressed reservations about the Ministry's proposal for various reasons, including:

  1. concern that the proposal would relieve electricity operators of the requirement to comply with the provisions of District Plans and other Resource Management Act (RMA) processes;
  2. uncertainty that the environmental effects of high voltage works (particularly the visual amenity effects of pole lines) would be managed adequately through District Plans and related resource management processes;
  3. concern that high voltage electricity works could interfere with, and present a safety hazard for, telecommunications services;
  4. uncertainty that road and rail controlling authorities would be able to manage adequately the traffic safety issues associated with high voltage works by prescribing reasonable conditions;
  5. concern that the relatively large clearance distances required by high voltage works would leave little room for other utility services (e.g. telecommunications, gas, water, and low voltage electricity works) in the road corridor; and
  6. concern that any relocation of high voltage works (e.g. to accommodate a road realignment) would impose high costs on the party requiring the relocation (as is provided in section 33 of the Electricity Act).

6. In respect of the first three concerns listed above, the government considers that:

  1. the proposal would not give electricity operators unfettered access to the road corridor, as they would continue to be subject to the RMA and subject to reasonable conditions prescribed by road controlling authorities;
  2. environmental effects are better managed using the available RMA processes than by road and rail controlling authorities negotiating conditions with electricity operators seeking access to roads and level crossings; and
  3. the potential for interference between electricity works and telecommunications services is better managed under the Electricity Regulations 1997 and through other processes than by road and rail controlling authorities negotiating conditions with electricity operators.

7. In response to the other concerns raised, the government considered a revised proposal (see below), which would not change the status quo for high voltage electricity works involving poles or other structures on roads and level crossings. The government concluded that the issues raised in submissions were significantly ameliorated by the revised proposal, to the extent that the benefits of the revised proposal exceed any detriments.

Revised Proposal

8. The government decided that there would be benefits in removing the voltage and capacity threshold in sections 24 and 31 for electricity works suspended in the airspace above, or buried in the subsoil below, roads and level crossings. This revised proposal would retain the existing voltage/capacity threshold for works involving poles or other structures in the road reserve, but would extend the existing statutory provisions to high voltage underground cables and to high voltage lines that cross over a road (suspended from poles or towers that are located outside the road or level crossing).

9. The revised proposal would remove a potential barrier to the timely development of electricity infrastructure, by giving electricity operators statutory rights of appeal and statutory timeframes regarding the conditions that road and rail controlling authorities may prescribe for high voltage works over or under roads and level crossings.

10. The government has included the Electricity Act amendments alongside amendments to the Resource Management Act in the Resource Management and Electricity Legislation Amendment Bill, introduced on 2 December 2004. The Bill contains legislation to improve the quality of resource management decision processes, and the Electricity Act amendments will clarify that the environmental effects of high voltage works in the road corridor are better managed using RMA processes than via the access conditions that a road controlling authority might otherwise prescribe.

Further Work

11. Consultation on this matter raised a number of wider issues relating to utility access to the road and rail corridor. Some submissions sought greater consistency between the various utility statutes (the Electricity Act, the Gas Act, and the Telecommunications Act) in respect of road access provisions, particularly those relating to notification processes and the allocation of costs when works are required to be moved. Other submissions suggested that the existing provisions for utility access to roads and level crossings be extended to motorways and rail corridors.

12. The government has agreed to review these matters. The Ministry of Economic Development will lead this review, and will work with interested parties to clarify the issues and identify options to address them. The Ministry intends to draw on work already undertaken in this area, such as the work progressed by the New Zealand Utilities Advisory Group, and will make recommendations to government by the end of October 2005.

13. If you would like to be kept informed of developments in this area or have any comments on these matters, please send an email to: electricity@med.govt.nz, or telephone Gareth Wilson on 04-460 1375.

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