< Part 8 
 Part 10 > 

 

 

28 June 2018
Electricity Industry Participation Code 2010
Part 9
Security of supply
Contents
Subpart 1—Planning for shortage of supply situations
9.1
Purpose
System operator rolling outage plan
9.2
System operator must prepare and publish system operator rolling outage plan
9.3
Incorporation of system operator rolling outage plan by reference
9.4
Contents of system operator rolling outage plan
9.5
Amendments and substitutions of system operator rolling outage plans
Participant rolling outage plans
9.6
System operator must require specified participants to develop participant rolling
outage plans
9.7
Specified participants must develop participant rolling outage plans
9.8
Contents of participant rolling outage plans
9.9
Approval of participant rolling outage plans
9.10
Revision of participant rolling outage plans
9.11
Approval of revised participant rolling outage plans
9.12
Publishing of participant rolling outage plans
9.13
Specified participants must keep participant rolling outage plans up to date
Subpart 1A—Urgent temporary grid reconfigurations
9.13A
Purpose
9.13B
Request for urgent temporary grid reconfiguration
Subpart 2—Outages in shortage of supply situation
9.14
Supply shortage declaration
9.15
Power to direct outages in security of supply situation
9.16
Specified participants must comply with direction
9.17
Revocation of supply shortage declaration
Subpart 3—Miscellaneous
9.18
Provision of information
Subpart 4—Customer compensation schemes
9.19
Contents of this subpart
Requirement for retailers to have customer compensation scheme
9.20
Retailermust have customer compensation scheme
9.21
Qualifying customers
9.22
Requirement to implement customer compensation schemes
Official conservation campaign
9.23
System operator commencesofficial conservation campaign
Default customer compensation scheme
9.24
Requirements of default customer compensation schemes
Electricity Industry Participation Code 2010
Part 9
2 28 June 2018
Minimum weekly amount of compensation
9.25
Authority must determine minimum weekly amount
Additional customer compensation schemes
9.26
Retailer may have additional customer compensation schemes
9.27
Qualifying customer may elect to be covered by additional customer compensation
scheme
9.28
Publishing description of additional customer compensation schemes
Certificate of compliance
9.29
Each retailer must provide certification
Audit
9.30
Audit of compliance
9.31
Retailer must provide information to auditor
9.32
Auditor must provide audit report
9.33
Payment of auditor’s costs
Subpart 1— Planning for shortage of supply situations
9.1 Purpose
The purpose of this subpart and subpart 2 is to provide for the management and co-
ordination of planned outages as an emergency measure during energy shortages.
Compare: SR 2008/252 r 3
System operator rolling outage plan
9.2 System operator must prepare and publish system operator rolling outage plan
(1) The system operator must prepare and publish a system operator rolling outage
plan.
(2) Before publishing a system operator rolling outage plan the system operator must
submit to the Authority for approval a draft system operator rolling outage plan.
(3) Clause 7.5(3) to (11) applies to the approval of the system operator rolling outage
plan by the Authority as if references to the security of supply forecasting and
information policy and the emergency management policy were a reference to the
system operator rolling outage plan.
Compare: SR 2008/252 r 5
9.3 Incorporation of system operator rolling outage plan by reference
(1) The system operator rolling outage plan is incorporated by reference in this Code in
accordance with section 32 of the Act.
(2) Subclause (1) is subject to Schedule 1 of the Act, which includes a requirement that the
Authority must give notice in the Gazette before an amended or substituted system
operator rolling outage plan becomes incorporated by reference in this Code.
Clause 9.3(1): amended, on 5 October 2017, by clause 144 of the Electricity Industry Participation Code Amendment
(Code Review Programme) 2017.
Electricity Industry Participation Code 2010
Part 9
3 28 June 2018
9.4 Contents of system operator rolling outage plan
A system operator rolling outage plan must
(a)describe events that the system operator predicts will be likely to give rise to the
need to make a supply shortage declaration; and
(b) set out thresholds that the system operator will apply in deciding whether to
makea supply shortage declaration; and
(c) specify how the system operator intends to determine what directions to give to
address the shortage of electricity supply or transmission capacity that gives rise
to the declaration; and
(d) identify specified participants, or a class or classes of specified participants,
who are required to develop participant rolling outage plans under clauses 9.6
to 9.13; and
(e) specify criteria, methodologies, and principles to be applied in implementing
outages, or taking any other action, to be provided for in participant rolling
outage plans; and
(f) specify criteria, methodologies, and principles to be applied by any specified
participant who does not have an approved participant rolling outage plan in
implementing outages, or taking any other action, in accordance with directions
given by the system operator under clause 9.15.
Compare: SR 2008/252 r 6
9.5 Amendments and substitutions of system operator rolling outage plans
(1) The system operator may
(a)amend a system operator rolling outage plan; or
(b) revoke a system operator rolling outage plan and substitute a new plan.
(2) This subpart applies to an amendment to a plan or a substitute plan—
(a)as if the amendment or substitute plan were the original plan; and
(b) with other necessary modifications.
(3) The system operator must not submit an amended or new system operator rolling
outage plan to the Authority under clause 9.2(2) unless the system operator has
(a) consulted with persons that the system operator thinks are representative of the
interests of persons likely to be substantially affected by the amended or new plan;
and
(b) considered submissions made on the amended or new plan.
(4) Subclause (3) does not apply if the system operator considers that it is necessary or
desirable in the public interest that the proposed system operator rolling outage plan
be published urgently, and, in this case, the system operator rolling outage plan must
state that the plan is published in reliance on this subclause and then, within 6 months
of the plan being published, the system operator must—
(a) comply with subclause (3); and
(b) decide whether or not the plan should be amended or revoked and a new plan
substituted; and
Electricity Industry Participation Code 2010
Part 9
4 28 June 2018
(c) no later than 10 business days after making that decision, publish the decision;
and
(d) if the system operator decides that the plan should be amended or revoked and a
new plan substituted, comply with this clause in relation to the proposed
amendment or revocation and substitution.
(5) To avoid doubt, a system operator rolling outage plan is not invalid only because the
system operator did all or any of the things referred to in subclause (3) before this
clause came into force.
Compare: SR 2008/252 r 7 and 8
Clause 9.5(4): amended, on 5 October 2017, by clause 145(a) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.5(4)(c): amended, on 5 October 2017, by clause 145(b) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Participant rolling outage plans
9.6 System operatormust require specified participants to develop participant rolling
outage plans
(1) This clause applies when a specified participant is identified under a system operator
rolling outage plan as being required to develop a participant rolling outage plan.
(2) The system operator must send notice in writing to that specified participant of that
requirement, including—
(a) specifying the requirements that the participant rolling outage planmust
comply with under this Part and the system operator rolling outage plan; and
(b) specifying a date by which the specified participant must submit that plan to the
system operator.
(3) The system operator must send the notice under subclause (2) as soon as practicable
after the system operatorpublishes its system operator rolling outage plan.
Compare: SR 2008/252 r 8A
9.7 Specified participants must develop participant rolling outage plans
(1) Each specified participant who receives a notice under clause 9.6 must develop its
participant rolling outage plan in accordance with the notice.
(2) The specified participant must submit the plan to the system operator by the date
specified under clause 9.6(2)(b).
Compare: SR 2008/252 r 8B
9.8 Contents of participant rolling outage plans
(1) Each participant rolling outage plan must—
(a) be consistent with the system operator rolling outage plan; and
(b) comply with the requirements specified in the notice sent under clause 9.6(2)(a);
and
(c)specify the actions that the specified participantwill take to achieve, or
contribute to achieving, reductions in the consumption of electricity (including
any target level of reduction of consumption of electricity in accordance with
criteria, methodologies, and principles specified in the system operator rolling
Electricity Industry Participation Code 2010
Part 9
5 28 June 2018
outage plan) to comply with a direction from the system operator given under
clause 9.15.
(2) This clause does not limit clause 9.6(2)(a).
Compare: SR 2008/252 r 8C
9.9 Approval of participant rolling outage plans
(1) The system operator must, as soon as practicable after receiving a participant rolling
outage plan, by notice in writing to the specified participant who submitted the
plan,—
(a)approve it; or
(b) decline to approve it.
(2) The system operator may decline to approve the plan only if the system operator is
not satisfied that the plan complies with clause 9.8.
Compare: SR 2008/252 r 8D
9.10 Revision of participant rolling outage plans
If thesystem operator declines to approve a participant rolling outage plan,—
(a)the system operator must
(i) indicate the grounds on which it declines to approve the plan; and
(ii) direct the specified participant to submit a revised plan; and
(b) the specified participant must submit a revised plan to the system operator no
later than
(i) 15 business days after the date on which the specified participant received
the direction from the system operator to submit a revised plan; or
(ii) any later date that the system operator may allow in any particular case.
Compare: SR 2008/252 r 8E
Clause 9.10(b)(i): amended, on 5 October 2017, by clause 146 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
9.11 Approval of revised participant rolling outage plans
(1) As soon as practicable after receiving a revised participant rolling outage plan, the
system operator must, by notice in writing to the specified participant who submitted
the plan,—
(a) approve the plan; or
(b) decline to approve it.
(2) If the system operator declines to approve the revised plan, clause 9.10 applies.
Compare: SR 2008/252 r 8F
9.12 Publishing of participant rolling outage plans
A specified participant must make its participant rolling outage planavailable to the
public, at no cost, on an Internet site maintained by or on behalf of the specified
participant, at all reasonable times, as soon as practicable after it is approved by the
system operator.
Compare: SR 2008/252 r 8G
Electricity Industry Participation Code 2010
Part 9
6 28 June 2018
9.13 Specified participants must keep participant rolling outage plans up to date
(1) Each specified participant who has had a participant rolling outage plan approved
under clauses 9.6 to 9.12 must—
(a) keep the plan under review, and (if necessary) amend the plan to take account of
any change of circumstances and to ensure that the plan continues to comply with
clause 9.8; and
(b) as soon as practicable after amending the plan, but in any case no later than 20
business days after amending it, submit the plan to the system operator.
(2) Despite subclause (1), not later than 2 years after the date on which a specified
participant's participant rolling outage plan was last approved, the specified
participant must resubmit the plan to the system operator for approval.
(3) A plan submitted to the system operator under subclause (1)(b) is deemed to be
approved by the system operator unless, no later than 20 business days after the
system operator receives the plan, the system operator advises the specified
participant who submitted the plan, by notice in writing, that it declines to approve the
plan.
(4) Clauses 9.9 to 9.12 apply to a plan that is submitted or resubmitted or declined under
this clause, except as provided in subclause (3).
Compare: SR 2008/252 r 8H
Clause 9.13(1)(b) and (3): amended, on 5 October 2017, by clause 147 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Subpart 1AUrgent temporary grid reconfigurations
Heading: inserted, on 16 December 2013, by clause 4 of the Electricity Industry Participation (Urgent Temporary
Grid Reconfiguration) Code Amendment 2013.
9.13A Purpose
The purpose of this subpart is to provide for the urgent temporary removal of
interconnection assets from service, or temporary reconfiguration of the grid, in order
to improve security of supply.
Clause 9.13A: inserted, on 16 December 2013, by clause 4 of the Electricity Industry
Participation (Urgent Temporary Grid Reconfiguration) Code Amendment 2013.
9.13B Request for urgent temporary grid reconfiguration
(1) The system operator may give notice in writing to Transpower requesting that
Transpower temporarily remove 1 or more interconnection assets from service, or
temporarily reconfigure the grid, if the system operator considers that—
(a)exceptional circumstances exist
(i) that are likely to lead, for a period of at least 3 weeks, to—
(A) a shortfall in thermal fuel; or
(B) a shortfall of hydro inflows; or
(C) the loss of a large generating asset; and
(ii)that make it necessary or desirable in the public interest to temporarily
remove 1 or more interconnection assets from service or temporarily
reconfigure the grid; and
(b) the removal or reconfiguration would improve security of supply.
Electricity Industry Participation Code 2010
Part 9
7 28 June 2018
(2) A notice given under subclause (1) must specify—
(a)the exceptional circumstances; and
(b) the reasons why temporarily removing assets from service or temporarily
reconfiguring the grid would improve security of supply.
(3) No later than 10 business days after giving notice to Transpower, the system operator
mustgive a written report to the Authority setting out the basis on which the system
operator requested that Transpower remove 1 or more interconnection assets from
service or temporarily reconfigure the grid.
(4) The system operator must ensure that the report given under subclause (3) includes—
(a)the matters specified in subclause (2)(a) and (b); and
(b) sufficient information to demonstrate that in developing its request to
Transpowerthe system operator followed a robust process, including the
options the system operator considered and the extent of any analysis and
consultation undertaken by the system operator.
(5) The Authority must publish the report.
Clause 9.13B: inserted, on 16 December 2013, by clause 4 of the Electricity Industry Participation (Urgent
Temporary Grid Reconfiguration) Code Amendment 2013.
Clause 9.13B(5): amended, on 5 October 2017, by clause 148 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Subpart 2—Outages in shortage of supply situation
9.14 Supply shortage declaration
(1) The system operator may, after consultation with the Authority, make a supply
shortage declaration.
(2) The system operator may make a supply shortage declaration only if there is a
shortage of electricity supply or transmission capacity such that the system operator
considers—
(a) that the normal operation of the spot market for electricity is, or will soon be,
unlikely to facilitate the adjustment of supply and demand necessary to ensure that
supply matches demand; and
(b) that, if planned outages are not implemented, unplanned outages are likely.
(2A) For the purposes of subclause (2), the spot market for electricity includes the processes
for setting
(a)real time prices:
(b) forecast prices and forecast reserve prices:
(c)provisional prices and provisional reserve prices:
(d) interim prices and interim reserve prices:
(e)final prices and final reserve prices.
(3) A declaration applies to
(a)all of New Zealand; or
(b) the regions specified in the declaration.
(4) In making a declaration under subclause (1), the system operator must have regard to
the system operator rolling outage plan.
(5) The system operator must publish the declaration as soon as practicable after it is
made.
Electricity Industry Participation Code 2010
Part 9
8 28 June 2018
Compare: SR 2008/252 r 9
Clause 9.14(2)(a): amended, on 18 July 2013, by clause 8(1) of the Electricity Industry Participation (Undesirable
Trading Situation) Code Amendment 2013.
Clause 9.14(2A): inserted, on 18 July 2013, by clause 8(2) of the Electricity Industry Participation (Undesirable
Trading Situation) Code Amendment 2013.
9.15 Power to direct outages in security of supply situation
(1) The system operator may, at any time in the period during which a supply shortage
declaration is in force, give a written direction to specified participants to contribute
to achieving reductions in the consumption of electricity by implementing outages or
taking any other action specified in the direction.
(2) A direction must—
(a) be consistent with the system operator rolling outage plan; and
(b) be given only after consultation with the Authority; and
(c) if the direction requires a specified participant to implement outages, specify the
savings targets that thespecified participant must achieve.
(3) [Revoked]
(4) The system operator must publish each direction as soon as practicable after it is
given.
(5) The system operator may
(a) amend a direction; or
(b) revoke a direction and, if the system operator considers it appropriate, substitute
a new direction.
(6) Subclauses (1) to (4) apply to an amendment to a direction or a substitute direction
(a)as if the amendment or substitute direction were the original direction; and
(b) with other necessary modifications.
Compare: SR 2008/252 r 10
Clause 9.15(1): amended, on 5 October 2017, by clause 149(1) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.15(3): revoked, on 5 October 2017, by clause 149(2) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.15(4): amended, on 5 October 2017, by clause 149(3) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
9.16 Specified participants must comply with direction
(1) Each specified participant must comply with a direction given to it by the system
operator under clause 9.15.
(2) Each specified participant must, in complying with the direction, apply, to the extent
practicable, the criteria, methodologies, and principles specified in the system operator
rolling outage plan.
(3) Each specified participant must comply with a direction in accordance with its
participant rolling outage plan, if it has a plan that has been approved under subpart 1.
(4) If a specified participant does not have a participant rolling outage plan approved
under subpart 1, the specified participant,—
(a) in complying with the direction, must apply, to the extent practicable, the criteria,
methodologies, and principles specified in the system operator rolling outage
plan; and
Electricity Industry Participation Code 2010
Part 9
9 28 June 2018
(b) as soon as practicable after the direction is given, must provide to the system
operator information as to the steps the specified participant will take to comply
with the direction (including any steps the specified participant has already taken
to comply with the direction).
Compare: SR 2008/252 r 11
9.17 Revocation of supply shortage declaration
(1) The system operator must revoke a supply shortage declaration when it is satisfied
that the circumstances that gave rise to the declaration no longer apply.
(2) The system operator must publish the revocation as soon as practicable after it is
made.
Compare: SR 2008/252 r 13
Subpart 3—Miscellaneous
9.18 Provision of information
(1) The system operator may, by notice in writing to a participant who the system
operator considers may have information relevant to any of the following, require the
participant to provide the information to the system operator:
(a) the preparation by the system operator of the system operator rolling outage
plan under clauses 9.1 to 9.5; and
(b) the need for a supply shortage declaration; and
(c) the need for a direction requiring outages under clause 9.15; and
(d) the number and extent of outages necessary under a direction; and
(e) monitoring compliance with a direction given under clause 9.15.
(2) Subclause (1) applies only to information that is
(a)reasonably necessary for the system operator to undertake its functions under this
Part or to monitor compliance with a direction regarding outages; and
(b) in that participant's possession or that the participant can obtain without
unreasonable difficulty or expense.
(3) The system operator must specify in the notice given under subclause (1) the date by
which the participant must provide the information required.
(4) A participant who has received a notice under subclause (1) must provide the
information required by the system operator by the date specified by the system
operator in the notice.
(5) The system operator may require specified participants to provide to the system
operator contact information specified by the system operator that would enable the
system operator to communicate with the specified participants.
Compare: SR 2008/252 r 14
Electricity Industry Participation Code 2010
Part 9
10 28 June 2018
Subpart 4Customer compensation schemes
Subpart 4: inserted, on 1 April 2011, by clause 5 of the Electricity IndustryParticipation (Customer Compensation
Schemes) Code Amendment 2011.
9.19 Contents of this subpart
This subpart provides a framework under which each retailer must have a customer
compensation scheme for all of the retailer’s qualifying customers, including—
(a)a default customer compensation schemethat a retailer must have; and
(b) additional customer compensation schemes that a retailer may have; and
(c)determining when a public conservation period commences and ends, during
which a retailer must make payments underits customer compensation
schemes; and
(d) a process by which the Authoritycan require that a retailer’s compliance with
this subpart is audited.
Clause 9.19: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Requirement for retailers to have customer compensation scheme
9.20 Retailer must have customer compensation scheme
(1) Each retailer who has 1 or more qualifying customers—
(a) must, at all times, have a default customer compensation scheme; and
(b) may, in addition to a default customer compensation scheme, have 1 or more
additional customer compensation schemes.
(2) Each of a retailer’s qualifying customers must be covered by the retailer’s default
customer compensation scheme,unless theretailer’s qualifying customer has
elected to be covered by 1 of the retailer’s additional customer compensation scheme
(if any) in accordance with clause 9.27.
(3) A retailer’s customer compensation scheme may cover a customer who is not a
qualifyingcustomer.
Clause 9.20: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
9.21 Qualifying customers
(1) A retailer’s qualifying customer is a person who, at any time during a public
conservation period, —
(a)is a customerof the retailer; and
(b) has a contract with the retailer for the supply of electricity in respect of an ICP
at which
(i)there is a category 1 metering installationor a category 2 metering
installation; and
(ii) there was consumption, in the 12 months immediately before thestart of the
publicconservation period, of 3000 kWh or more.
(2) Despite subclause (1), a person is not a qualifying customer if the price of all of the
electricity provided under the person’s contract with the retailer for the supply of
electricity is determined by reference to the final price at a GXP.
Electricity Industry Participation Code 2010
Part 9
11 28 June 2018
(3) For the purposes of subclause (1)(b)(ii), if a qualifying customer’s consumption at the
ICP in the 12 months immediately before thestart of the public conservation period is
not available to the retailer, the retailer must make a reasonable estimate of the
consumption.
(4) To avoid doubt, the retailer is not required to make payments under a customer
compensation scheme to a qualifying customer at an ICP in respect of any period
during a public conservation period, when—
(a) the premises to which the ICP is electrically connectedare vacant; or
(b)the ICP is electrically disconnected.
Clause 9.21: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.21: amended, on 5 October 2017, by clause 150(1) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.21(1): amended, on 28 June 2018, by clause 4(1) of the Electricity Industry Participation Code Amendment
(Customer Compensation Scheme) 2018.
Clause 9.21(1)(b)(i): amended, on 1 December 2011, by clause 6 of the Electricity Industry Participation Code
(Distributor Use-of-System Agreements and Distributor Tariffs) Amendment 2011.
Clause 9.21(1)(b)(ii): amended, on 5 October 2017, by clause 150(2) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.21(3): amended, on 5 October 2017, by clause 150(3) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.21(4)(a)(i) and (ii): amended, on 5 October 2017, by clause 150(4)(a) and (b) of the Electricity Industry
Participation Code Amendment (Code Review Programme) 2017.
Clause 9.21(4)(b)(i): amended, on 5 October 2017, by clause 150(4)(c) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.21(4): replaced, on 28 June 2018, by clause 4(2) of the Electricity Industry Participation Code Amendment
(Customer Compensation Scheme) 2018.
9.22 Requirement to implement customer compensation schemes
(1) A retailer must make payments to its qualifying customers, in respect of ICPs
described in clause 9.21(1)(b), under its customer compensation schemes during a
public conservation period.
(2) Despite subclause (1), if a public conservation period is running because the system
operator has commenced an official conservation campaign under clause 9.23(1), a
retailer must make payments under its customer compensation scheme to its
qualifyingcustomersonly in respect of ICPs, as described in clause 9.21(1)(b), in the
South Island.
Clause 9.22: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.22(2): amended, on 21 September 2012, by clause 12 of the Electricity Industry Participation (Minor
Amendments) Code Amendment 2012.
Official conservation campaign
9.23 System operator commences official conservation campaign
(1) The system operator must commence an official conservation campaign for the South
Island
(a) when a comparison of storage in the South Island hydro lakes with the South
Island hydro risk curves, as that term is defined in the security of supply
forecasting and information policy,—
(i) shows a risk of shortage for the South Island of 10% or more; and
Electricity Industry Participation Code 2010
Part 9
12 28 June 2018
(ii) forecasts that the risk of shortage for the South Island will be 10% or more
for 1 week or more; or
(b) despite paragraph (a), if it has agreed a date with the Authorityfor an official
conservation campaign to commence for the South Island, on that date.
(2) The system operator must commence an official conservation campaign for New
Zealand
(a) when a comparison of storage in New Zealand’s hydro lakes with the hydro risk
curves, as that term is defined in the security of supply forecasting and
information policy,—
(i) shows a risk of shortage for New Zealand of 10% or more; and
(ii) forecasts that the risk of shortage for New Zealand will be 10% or more for
1 week or more; or
(b) despite paragraph (a), if it has agreed a date with the Authorityfor an official
conservationcampaign to commence for New Zealand, on that date.
(3) The system operator must use reasonable endeavours to give each participant and the
Authority at least 2 weeks’ notice of an official conservation campaign commencing.
(4) If the system operator has commenced an official conservationcampaign, it must
(a) during the period of the official conservation campaign, regularly review the
steps that thesystem operator must take, and encourage participants to take,
under the emergency management policy; and
(b) end the official conservation campaign
(i) when a comparison of storage in the hydro lakes with the hydro risk curves,
as that term is defined in the security of supply forecasting and
information policy, shows a risk of shortage for New Zealand or the South
Island (as the case may be) of 8% or less; and
(ii) despite subparagraph (i), if it has agreed a date with the Authority for an
officialconservationcampaign to end, on that date.
(5) If the system operator and the Authority agree under subclause (1)(b) or (2)(b) that an
official conservation campaign will commence, the system operator must publish the
reasons for agreeing that the official conservation campaign will commence.
(6) The system operator must, as soon as practicable after ending an official conservation
campaign, give notice to each participant and the Authority of the date on which the
official conservationcampaign ended.
Clause 9.23: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.23(4)(b)(i): amended, on 21 September 2012, by clause 13 of the Electricity Industry Participation (Minor
Amendments) Code Amendment 2012.
Clause 9.23(5): amended, on 5 October 2017, by clause 151 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Default customer compensationscheme
9.24 Requirements of default customer compensation schemes
(1) A retailer’s default customer compensation scheme must provide for the retailer
(a) during an official conservation campaign for the South Island, to pay each of its
qualifying customers in the South Island at least the minimum weekly amount of
Electricity Industry Participation Code 2010
Part 9
13 28 June 2018
compensation determined by the Authority under clause 9.25, at a pro rata daily
ratefor each day of the officialconservation campaign that the qualifying
customer is theretailer’s customer; and
(b) at any other time during a public conservation period, to pay each of its
qualifying customers at least the minimum weekly amount of compensation
determined by the Authority underclause 9.25, at a pro rata daily ratefor each
day of the public conservation period that the qualifying customer is the
retailer’s customer; and
(c) to pay at least the minimum weekly amount, at a pro rata daily rate, for each day
of a public conservation period that the qualifying customeris the retailer’s
customer
(i) to each of its qualifying customers in the South Island or New Zealand (as
the case may be), for each of the qualifyingcustomer’s ICPs described in
clause 9.21(1)(b):
(ii) no later than the end of 2 billing periods after the last day of a public
conservation period.
(2) [Revoked]
(3) For the purposes of this clause—
(a) compensation includes—
(i) money:
(ii) a credit on the qualifying customer’s electricity account with the retailer;
and
(b) the form of the compensation is to be determined by the retailer.
Clause 9.24: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.24(1)(a): amended, on 28 June 2018, by clause 5(1) of the Electricity Industry Participation Code
Amendment (Customer Compensation Scheme) 2018.
Clause 9.24(1)(b): amended, on 28 June 2018, by clause 5(2) of the Electricity Industry Participation Code
Amendment (Customer Compensation Scheme) 2018.
Clause 9.24(1)(c): amended, on 28 June 2018, by clause 5(3) of the Electricity Industry Participation Code
Amendment (Customer Compensation Scheme) 2018.
Clause 9.24(1)(c)(ii): amended, on 5 October 2017, by clause 152 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.24(2): revoked, on 28 June 2018, by clause 5(4) of the Electricity Industry Participation Code Amendment
(Customer Compensation Scheme) 2018.
Minimum weekly amount of compensation
9.25 Authority must determine minimum weekly amount
(1) In determiningthe minimum weekly amount that each retailermust pay to its
qualifyingcustomers, the Authority must take into account—
(a) the estimated value, in dollars/MWh, of the savings that the Authority expects all
qualifying customers in the South Island or New Zealand, as the case may be, of
all retailers, will achieve during an official conservation campaign; and
(b) any other factors that the Authority considers relevant.
(2) The Authority must—
(a) publish the minimum weekly amount; and
(b) review the minimum weekly amount—
Electricity Industry Participation Code 2010
Part 9
14 28 June 2018
(i) after each public conservation period ends; and
(ii) at least once every 3 years; and
(c) following a review under paragraph (b), ensure that it gives participants at least 3
months’ notice if it determines a new minimum weekly amount.
Clause 9.25: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.25(2)(a): amended, on 5 October 2017, by clause 153(a) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.25(2)(b)(ii): amended, on 5 October 2017, by clause 153(b) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Additional customer compensationschemes
9.26 Retailer may have additional customer compensation schemes
A retailer may have 1 or more additional customer compensation schemes.
Clause 9.26: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
9.27 Qualifying customer may elect to be covered by additional customer compensation
scheme
(1) If a retailer has 1 or more additional customer compensation schemes, each of the
retailer’squalifying customers is covered by
(a) 1 of the retailer’s additional customer compensation schemes only if the
qualifying customer elects to be covered by the additional customer
compensation scheme; or
(b) in the absence of an election, the retailer’s default customer compensation
scheme.
(2) Before accepting a qualifying customer’s election, a retailer must ensure that it
informs the qualifying customer of—
(a) the details of the additional customer compensation scheme; and
(b) the differences between the retailer’s default customer compensation scheme
and the additional customer compensation scheme.
(3) A retailer must keep a record of each qualifying customer’s election.
(4) A qualifyingcustomer’s election must not—
(a) be part of the contract between the qualifying customer and the retailer for the
supply of electricity; or
(b) affect the tariff options that the retailer offers to the qualifying customer; or
(c)be affected by the tariff option in the qualifying customer’s contract with the
retailer.
Clause 9.27: inserted, on 1 April 2011, by clause5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
9.28 Publishing description of additional customer compensation schemes
A retailer who has 1 or more additional customer compensation schemes must—
(a) publish and keep published a description of its additional customer
compensation schemes; and
(b) on request from a customer, provide a written description of the additional
Electricity Industry Participation Code 2010
Part 9
15 28 June 2018
customer compensation schemes.
Clause 9.28: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.28(a): amended, on 5 October 2017, by clause 154 of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Certification of compliance
Cross heading: replaced, on 5 October 2017, by clause 155 of the Electricity Industry Participation Code Amendment
(Code Review Programme) 2017.
9.29 Each retailer must provide certification
(1) Each retailer must certify to the Authority that
(a)the retailer’scustomer compensation scheme complies with this subpart; and
(b) the retailerhas provided compensation to its qualifying customers, to the extent
required by this subpart.
(2)The certification provided under subclause (1) must be—
(a) [Revoked]
(b) in the form specified by the Authority; and
(c) signed and dated by a director of the retailerand either
(i) another director of the retailer; or
(ii) the retailer’s chief financial officer, or a person holding an equivalent
position; or
(iii) the retailer’s chief executive officer, or a person holding an equivalent
position.
(3) A retailer must provide certifications as follows:
(a) within 7 months of the end of a public conservation period:
(b) within 1 month of receiving a request to do so by the Authority.
(4) [Revoked]
Clause 9.29: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Heading: amended, on 5 October 2017, by clause 156(1) of the Electricity Industry Participation Code Amendment
(Code Review Programme) 2017.
Clause 9.29(1): amended, on 5 October 2017, by clause 156(2) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.29(2): amended, on 5 October 2017, by clause 156(3) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.29(3): amended, on 5 October 2017, by clause 156(4) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Clause 9.29(4): revoked, on 5 October 2017, by clause 156(5) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2017.
Audit
9.30 Audit of compliance
(1) The Authority may, in its discretion, carry out an audit to determine whether a retailer
has complied with this subpart.
(2) If the Authority decides to audit a retailer under subclause (1), the Authority must
require the retailer to nominate an appropriate auditor.
(3) The retailer must nominate an auditor within a reasonable timeframe, and the
Authority must appoint the nominated auditor.
Electricity Industry Participation Code 2010
Part 9
16 28 June 2018
(4) If the retailer fails to nominate an appropriate auditor within a reasonable timeframe,
the Authority may appoint an auditor of its own choice.
Clause 9.30: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
9.31 Retailer must provide information to auditor
(1) A retailer subject to an audit under this subpart must, on request from the auditor,
provide the auditor with information relating to its compliance with this subpart in the
previous 12 months or such other period specified by the auditor.
(2) The retailer must provide the information within 20 business days after receiving a
request fromthe auditor.
Clause 9.31: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
9.32 Auditor must provide audit report
(1) The retailer must ensure that the auditor provides the Authority with an audit report
on the retailer’s compliance with this subpart that has been prepared in accordance with
this clause.
(2) The audit report must include any comments from the retailer on any non-compliance
found by the auditor if the retailer provided the comments to the auditor within a time
specified by the auditor.
(3) [Revoked]
(4) The audit report must not contain any of the information provided by the retailer to the
auditor under clause 9.31 unless requested by the Authority.
Clause 9.32: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
Clause 9.32(1): amended, on 1 February 2016, by clause 24(1) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2015.
Clause 9.32(2): substituted, on 1 February 2016, by clause 24(2) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2015.
Clause 9.32(3): revoked, on 1 February 2016, by clause 24(3) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2015.
Clause 9.32(4): amended, on 1 February 2016, by clause 24(4) of the Electricity Industry Participation Code
Amendment (Code Review Programme) 2015.
9.33 Payment of auditor’s costs
(1) If an audit establishes, to the Authority’s reasonable satisfaction, that a retailer has not
complied with this subpart (whether or not the Authority appoints an investigator to
investigate the alleged breach), the retailer must pay the auditor’s costs.
(2) If the Authority considers that the retailer’s non-compliance is minor or relates to
some (but not all) of the clauses in this subpart, the Authority may, in its discretion,
determine the proportion of the auditor’s costs that the retailer must pay, and the
retailer must pay those costs.
(3) If an audit establishes to the Authority’s reasonable satisfaction that a retailer has
complied with this subpart, the Authority must pay the auditor’s costs.
Clause 9.33: inserted, on 1 April 2011, by clause 5 of the Electricity Industry Participation (Customer Compensation
Schemes) Code Amendment 2011.
 < Part 8 
 Part 10 >