Interpretation of the Authority's statutory objective

Section 15 of the Electricity Industry Act 2010 (Act) provides the Authority with a single statutory objective:

To promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers

The Interpretation of the Authority's statutory objective clarifies how the Authority interprets its statutory objective, will assist the Board to make consistent decisions and will assist staff and advisory groups to develop Code amendments and market facilitation measures for the Board's consideration.

Consultation charter

The Act requires the Authority to develop, issue and make publicly available a consultation charter. This consultation charter must include guidelines, not inconsistent with the Act, relating to the processes for:

  • amending the Electricity Industry Participation Code (Code)
  • consulting on proposed amendments to the Code.

For the sake of clarity, the Authority has divided the consultation charter into two parts:

  • Part 1 relates to processes for amending the Code.
  • Part 2 relates to processes for consulting on proposed amendments to the Code.

Charter about advisory groups

The Act requires the Authority to appoint an advisory group called the Security and Reliability Council (SRC) to provide independent advice to the Authority on:

  • the performance of the electricity system and the system operator
  • reliability of supply issues.

The Act also requires the Authority to establish one or more other advisory groups to provide independent advice to the Authority on the development of the Code and on market facilitation.

The Act requires the Authority to make and make publicly available a charter on:

  • how it will establish and interact with the advisory groups
  • when and how it will consult advisory groups on material changes to the Code
  • how advisory groups must operate, including provisions concerning procedure.