Archive - How the Commission worked
This page contains information about how the Commission worked including the Commission Board, Committees, workstreams, advisory groups and relationships with other agencies.
The Commission was governed by a Board appointed by the Minister of Energy and Resources of no fewer than five members and no more than nine. Members held office for a term of up to three years and could be reappointed. Members were appointed on the basis of their extensive knowledge of, or experience in, the electricity industry, electricity markets, regulatory processes and public policy.
The Board established five Committees to which it delegated certain responsibilities - the Electricity Governance Rules Committees, the System Operations Committee, the Undesirable Trading Situations Committee, the Risk and Audit Committee and the Remuneration Committee. The Commission also appointed and funded the Rulings Panel a dispute resolution and disciplinary body that determined complaints and disputes brought to it under the Rules and Regulations.
Commission operations were led by a General Manager, which was the Commission's Senior Executive position. Given the complexity of work and relationships within the industry and government, the Chair and the General Manager worked together closely.
The Commission worked with other Government agencies and departments on various aspects of its work programme. These included the Ministry for the Environment, Commerce Commission, Ministry of Economic Development (now MBIE), Ministry for Consumer Affairs, and the Energy Efficiency and Conservation Authority (EECA).
The Commerce Commission and the Commission worked closely to ensure that their respective roles were well coordinated, and to minimise any scope for uncertainties regarding jurisdictional issues, eg. the Market Development Programme.
Memoranda of Understanding
The Commission had Memoranda of Understanding (MOUs) with both the Commerce Commission and ECCA. These defined the functions of the respective organisations so that duplication of work was avoided and the organisations worked together effectively.
The Commerce Commission and the Electricity Commission signed an amended Memorandum of Understanding (MOU) on 13 November 2008. The amended MOU incorporated two detailed operational protocols addressing the matters set out in the May 2008 Government Policy Statement on Electricity Governance. It updated the earlier one signed between the parties in August 2007.
- Commerce Commission - 2008
- Commerce Commission - Protocol on improving incentives for electricity distribution business 2008
- Commerce Commission - Protocol on transmission arrangements 2008
On 18 November 2008, EECA and the Commission signed an updated Memorandum of Understanding detailing working principles and arrangements between the parties and including reference to the matters set out in the May 2009 Government Policy Statement on Electricity Governance. It updated the earlier one signed between the parties in August 2005.
The Commission was funded by appropriations from Parliament, recovered by levies on electricity industry participants. Different rates were levied on generators, retailers, direct supply customers, lines companies and Transpower.
The Commission consulted annually on its proposed levy requirements, then made a request to Government for its appropriations. The levy requirements covered electricity governance and market operations (the funding of Service Providers, regulatory development, compliance and enforcement) reserve energy and emergency measures, and electricity efficiency.