The Commerce Commission has received an application from Lloyd Morrison, seeking exemption from section 17 of the Electricity Industry Reform Act 1998 in relation to his nomination for a position of director of Auckland International Airport by Infratil.

Currently, Lloyd Morrison is an Infratil appointed director of Wellington International Airport Limited, TrustPower Limited and a number of other companies.

Infratil Limited is a specialist investor in infrastructure and utility assets.  The company is listed on the NZX and owns airports in New Zealand and Europe as well as energy and other investments in New Zealand and Australia.  Infratil is the major shareholder in Wellington International Airport Limited and TrustPower Limited and has shares in Auckland International Airport Limited.

Section 17 of the EIR Act prohibits the cross-involvement of electricity lines and supply companies.

Background

The purpose of the EIR Act is to reform the electricity industry:

• to better ensure that costs and prices in the electricity industry are subject to sustained downward pressure;
• to ensure the benefits of efficient electricity pricing flow through to all classes of consumers; and
• by effectively separating electricity distribution from generation and retail and promoting effective competition in electricity generation and retail markets.

The Commission may grant an exemption only where doing so:

a.       would not result in certain involvements in electricity lines businesses and electricity supply businesses which may create incentives or opportunities:

                     i.            to inhibit competition in the electricity industry; or

                   ii.            to cross-subsidise generation activities from electricity lines businesses; and

b.      would not result in relationships between electricity lines businesses and electricity supply businesses which are not at arms length.

For further information on the Commission’s role within the EIR Act, visit the Commission’s website, www.comcom.govt.nz under Industry Regulation/Electricity/Electricity Industry Reform Act.

A public version of the application is available on the Commission’s website, under Public Registers/Electricity Industry Reform Act – Exemptions