Electricity Industry Reform Act 1998
088
Commenced: 9 July 1998
ANALYSIS
Analysis
Title
1 Short Title and commencement
2 Purpose
1: Separation of Lines and Supply
Interpretation
3 Interpretation
4 Meaning of ``electricity lines business''
5 Meaning of ``electricity supply business''
6 Meaning of ``business A''/``business B''
7 Meaning of ``involved''
8 Meaning of ``10% threshold''
9 Meaning of ``control rights''
10 Meaning of ``equity return rights''
a:
11 Meaning of ``material influence''
12 Meaning of ``associate''
13 Meaning of ``agency''
14 Substance matters, not form
Application of Act
15 Application to persons outside New Zealand
16 Act binds the Crown
2: Separation of Lines and Supply
Ownership Separation
17 Cross-ownership prohibition
18 20% aggregate cross-ownership prohibition
Scope of Application of Ownership Rules
19 Certain businesses and involvements to be disregarded
Application of Ownership Separation Rules to Trust-Like Interests
20 Non-specific interests rule
21 Responsibility for remedying contravention
Process for Compliance
22 Compliance with ownership separation rules
23 Agreements and negotiations leading to separation
24 Corporate separation
25 Arms length rules
26 12 months' lead in time to full arms length
Interim Exemptions, Rules, and Compliance Options
27 Purpose of sections
Exemptions for Certain Involvements
28 Exemption for existing involvements until separation
29 Exemption for acquisitions of one person's cross-involvements
Ban on Expanding Cross-Involvements
30 Ban on expansion in cross-involvements
Options for Persons Wishing to Expand
31 Exemption for any involvement in single unseparated business
32 Exemption for certain Treaty-related transactions
33 Exemption for Highbank right of first refusal in Nga~i Tahu Treaty settlement
34 Exemption for companies with direct ownership
35 Other expansion option
Compliance Process for Existing 20% Aggregates
36 Compliance process for existing 20% aggregates
Mirror Trust and Mirror Co-operative Option
37 Mirror trust option
38 Qualifying conditions on mirror trust option
39 Transfer of business to mirror trust
40 Beneficiaries of mirror trusts
41 Terms of trust deeds for mirror trusts
42 Mirror co-operatives
43 Exemption of mirror trusts from ownership separation rules
44 Exemption of mirror trusts from rule limiting expansion of control by trust-like agencies
45 Trusts that cease to be mirror trusts
No Expansion of Control by Trust-Like Agencies in Electricity Supply
46 No expansion of control by trust-like agencies in electricity supply
3: Separation of Lines and Supply
Preliminary
47 Contraventions
48 Inadvertent contraventions
49 Jurisdiction of High Court
50 Jurisdiction of District Courts
Penalties
51 Pecuniary penalties
52 Injunctions
53 Actions for damages
54 Court may order divestiture of assets or voting securities
55 Additional penalty for contravention involving commercial gain
56 Other powers to give directions, re-open agreements
Miscellaneous Provisions
57 Miscellaneous
58 Application of Commerce Act 1986 provisions
59 Additional proceedings
4: Separation of Lines and Supply
60 Purpose
61 Mirror co-operatives
62 Mirror trusts
63 Consolidation rules modified generally for purposes of corporate ownership split and ownership split
64 Gifts not to form part of capital gain amounts
65 No stamp duty payable
66 Shares not acquired for resale
67 Definitions for tax sections
5: Separation of Lines and Supply
Anti-Avoidance
68 Duty not to defeat purposes of Parts 1 to 5
No Compensation
69 No compensation
Disclosure
70 Disclosure regime
Matters Relevant to Implementation of Part 2
71 Trust deeds
72 Beneficiaries of customer lines trusts
73 Shareholders of lines co-operatives
74 Power to make gifts
75 Application of Securities Act 1978
76 Protection from other Acts
77 Member approvals, etc
78 Consultation requirements
79 Technical redundancy
Extensions and Exemptions
80 Extensions
81 Exemptions
Application of Other Acts
82 Application of Commerce Act 1986
83 Not interconnected under Commerce Act 1986
84 Application of Energy Companies Act 1992
85 Dealing with land held for public works
86 Illegal Contracts Act 1970
Regulation-Making Powers
87 Regulations
6: Price Restraint for Line Charges for Domestic and Rural Consumers
88 Regulations relating to charges for line function services
89 Way in which price restraint may be imposed
90 Definition of ``domestic premises''
91 Offences
92 Other Acts relating to price control not affected
93 Interpretation
7: Amendments to Electricity Act 1992
94 Regulations relating to information disclosure
95 Regulations
96 Offences
8: Split of Electricity Corporation of New
97 Interpretation
98 Directions by shareholding Ministers
99 Principal objective of ECNZ
100 Enactments amended
101 Amendment to Electricity Act 1992
Schedule(s)
1 SCHEDULE 1: Arms Length Rules
2 : Amendments Consequential upon Split of ECNZ