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Customer Compensation Scheme

The Authority has announced details of an amendment to the Electricity Industry Participation Code 2010 (Code) from 1 April 2011. The amendment introduces a requirement for each retailer to operate a Customer Compensation Scheme (CCS).

The Electricity Industry Act 2010 identifies a number of priority initiatives to be addressed by the Authority. These initiatives seek to boost competition, improve investment and supply signals and strengthen monitoring of industry and market performance. The CCS is the first of the priority initiatives to be implemented.
Under the CCS, retailers will pay qualifying customers $10.50 per week during any future Public Conservation Campaigns (PCCs), and may also take up the option of offering their own compensation schemes potentially linked to individual customers' conservation efforts.

The CCS provides certainty as to when a PCC may be called in the future and assigns clear responsibility for triggering and ending a campaign to Transpower as the System Operator. It should also result in PCCs occurring less frequently than in the past.

Overview of the Customer Compensation Scheme

The CCS Summary below introduces the CCS, provides relevant background and an overview of the provisions of the CCS.

The CCS Questions and Answers document below sets out answers to a range of questions consumers may have about the operation of the CCS.

Gazette Notice

The Gazette Notice notifies the making of the Electricity Industry Participation (Customer Compensation Schemes) Code Amendment 2011.

Code Amendment

The Code Amendment is a copy of the amendment to the Code, which introduces a new subpart 4 to Part 9 of the Code. The new subpart includes all the details about CCSs.

Minimum Weekly Amount of Compensation

Clause 9.25(2)(a) of the Code requires the Authority to publicise the minimum weekly amount of compensation that each retailer must pay to its qualifying customers under a default CCS.

From 1 April 2011, the minimum weekly amount is $10.50.

Authority contact

If you have any questions regarding the Customer Compensation Scheme, please contact Tim Street, the Director, Wholesale, at [javascript protected email address] or 04 460 8851

This page is related to: Consumer Information.

Back to top Last updated on 14 September 2012