Final Reports

These are the final reports of the Energy Reform Transition Unit, which was established to develop an implementation plan for achieving the split of ECNZ into three competing state-owned enterprises. The reports were released on 15 December 1998.

Final Certification Report

This report has been prepared pursuant to ERTU's terms of reference. It contains ERTU's final conclusions on whether or not:

• the restructuring of ECNZ into three SOEs is achievable;
• the three SOEs will be commercially viable entities;
• the three SOEs will be effective competitors,

in each case within the principles and parameters set out in the 1998 electricity reform package. It is ERTU's final opinion that the Government's objectives set out in the Reform Package are likely to be achieved. In particular:

• splitting ECNZ into three new SOEs is achievable; and
• the three new SOEs would be commercially viable entities and effective competitors.

The following reports form the basis of the conclusions contained in, and should be read in conjunction with this report.

ECNZ Split Market Impact Report

This report outlines ERTU's views on the likely market outcomes and whether there are any environmental issues and security of supply issues that may affect, or result from, the split of ECNZ.

Transaction Overview Report

This report provides an overview and summary of certain key aspects of the split, including the allocation of ECNZ’s assets.

IDG Certification Report

This report summarises and comments on the reports submitted by the IDGs. These reports are available below.

Interim Development Groups

On 15 September 1998 an Interim Development Group (IDG) was established for each of the three SOEs proposed to be formed upon the split of ECNZ. The IDGs were tasked with carrying out detailed analysis and planning for the establishment and operation of each SOE, and to provide a certification report to ERTU and the Government on 1 December 1998.

Certification Report

This report summarises the analysis and planning conducted by the Waikato IDG in reaching the opinion that the Waikato SOE will be a commercially viable entity and an effective competitor, in accordance with the objectives and principles of the Government’s April 1998 electricity reform package.

Assessment of Environmental Effects

This report considers the potential environmental effects associated with the split of ECNZ, and the operation of Waikato SOE assets. The report concludes that :

• Any changes will be within existing authorisations and agreements;
• There will be no significant or material negative environmental impact; and
• Inter-company obligations are defined and can be managed without negative environmental effects.

This report should be read in conjunction with the Waikato IDG’s Certification Report.

Certification Report

This report sets out the basis on which the Huntly IDG has certified that the Huntly SOE will be commercially viable an effective competitor. Summaries of the business plan, organisational development plan, operations plan, and environmental report prepared by the IDG are attached to the certificate as an appendix.

Environmental Report

This report has been prepared in the context of the Huntly IDG Certification Report. Among other things, the report concludes that no major environmental risks are associated with the assets allocated to the Huntly SOE, and that satisfactory resolution of agreements relating to the management of Lake Taupo with the Waikato IDG is essential.

Certification Report

This report concludes that the South Island SOE will be a financially viable entity and an effective competitor, in accordance with the objectives and principles of the Government’s April 1998 electricity reform package.

Environmental Report

The environmental report of the South Island IDG  reviews what might have happened had the South Island SOE remained within ECNZ.

Other Reports of the South Island IDG:

• Financial Viability and Competitiveness Report
• Legal Report
• Establishment Plan
• Business Plan
• Draft Statement of Corporate Intent