AIAL applies for exemption under EIR Act
17 February 2004
Issued 17 February 2004
The Commerce Commission has received an application from Auckland International Airport Limited (AIAL) for an exemption under the Electricity Industry Reform Act 1998 (EIR Act) in relation to the appointment of Dr Keith Turner, Meridian Energy Limited's Chief Executive, to the AIAL Board.
AIAL seeks an exemption from s 17 of the EIR Act which prohibits such cross-involvement. The EIR Act would deem Dr Turner to have material influence over Meridian's electricity supply business and AIAL's electricity lines business (in respect of its internal network).
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 and the benefits of efficient electricity pricing flow through to all classes of consumers, 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 in respect of a business or involvement or interest, 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.
Fritha Mackay, Manager, Market Structure Group
Phone work (04) 924 3650
Jackie Maitland, Communications Manager
Phone work (04) 924 3708, mobile 029 924 3708