Exemptions

An exemption provides an industry participant with a release from an obligation in the Code or from an obligation in a specified part of the Act. 

For example, exemptions could be sought from compliance with:

• a provision of the Code
• the obligation to register as a participant, under section 10 of the Act
• the application of, or a provision under, Part 3 of the Act “Separation of distribution from certain generation".

Any industry participant can apply for a Code exemption. Any business, involvement or person can apply for a Part 3 of the Act exemption. Applications must be made well before the exemption is needed.

For exemptions from the Code, complete and return the below application form, providing as much information as possible.

For an exemption from Part 3 of the Act, the business, involvement or person that requires the exemption needs to apply to us in writing. You can do this in a letter explaining why the exemption is needed and what measures have been put in place to meet the intention of the Act (if any). Please send the letter to compliance@ea.govt.nz.

Note, the contents of all exemption applications are subject to the Official Information Act 1982 and the Privacy Act 2020. If a request is received under those Acts for information contained in an application, we are required to consider release of the application, in whole or in part, in terms of the criteria set out in these Acts.

When providing an exemption application, please advise compliance@ea.govt.nz if you have any objection to the release of:

• any information contained in your application and, if you do object, the parts of your application you would wish withheld, and the grounds for withholding
• any information contained in your application to market operation service providers and the reasons for those objections (as information will be discussed with the market operation service providers, as appropriate).

Please apply as early as possible. The process for reviewing, considering and making a decision on an exemption can take a significant amount of time. For example, the time it takes to review and process applications depends on whether:

• the information provided is complete or not
• the requested exemption impacts other industry participants
• complex Code or Act provisions need to be assessed
• any cost estimates to resolve have supporting information
• when the Compliance Committee/Board will next meet.

It takes us, on average, two to four months to consider an application. We decide the outcome of applications approximately four times a year. When we receive an application, we will advise you when we expect our Compliance Committee/Board will consider your application.

If your exemption is required urgently, email compliance@ea.govt.nz with your reasons and a timeframe within which:

• a decision is requested
• any exemption granted needs to be Gazetted.

We will endeavour to prioritise your application, but there is no guarantee.

Your application may involve issues about the interpretation and application of the law. Where these kinds of complexities arise, we recommend that you seek legal advice.

If the reasons underlying your application are practical, then legal advice may not be necessary.

We have the following process for exemption applications:

1. Application considered
   Your application is considered by our compliance team, who may seek additional clarification from you. They will prepare and finalise a recommendation for our Compliance Committee/Board.
2. Consideration by our Compliance Committee and/or Board
   The recommendation is considered by the Compliance Committee. If they consider the exemption to be significant, they will refer it to our Board.
   We will contact you as soon as we know if your application has been granted or not.
3. Notice drafted
   If the application is approved, our compliance team prepare the exemption New Zealand Gazette notice.
4. Notice published
   The approved exemption notice is published in the New Zealand Gazette. The exemption does not come into force until at least the day after it has been published in the New Zealand Gazette.