This legislation is administered by the Electricity Authority. For more information please see: Website: https://www.ea.govt.nz/
Contact phone: +64 4 460 8860
Contact address: PO Box 10041, Wellington 6143
This amendment to the Electricity Industry Participation Code 2010 (Code) is made under section 38 of the Electricity Industry Act 2010 (Act) by the Electricity Authority having complied with section 39 of the Act.
Contents | ||
1 | Title | 1 |
2 | Commencement | 1 |
3 | Code amended | 1 |
Part 1 Amendments to Part 13 of the Electricity Industry Participation Code | ||
4 | Clause 13.268 amended (Definition of materially large contract) | 2 |
This is the Electricity Industry Participation Code (Materially Large Contract Definition) Amendment 2026.
This amendment comes into force on 1 July 2026.
This amendment amends the Electricity Industry Participation Code 2010.
After clause 13.268(1)(a)(i), insert:
(ia) results in a final price paid by the buyer (after accounting for any discounts) of less than:
the price of an equivalent exchange traded derivative or derivatives; or
the spot price, for any trading period during the term of the contract; and
In clause 13.268(1)(b)(ii), insert “and at least one contract satisfies paragraph (a)(ia)” after “paragraph (a)(ii)”.
In clause 13.268(3):
insert “practically and physically” after “maximum quantity of electricity
consumption”; and
insert “, given the equipment or plant at the buyer’s ICP,” after “contract at any one time”.
Replace clause 13.268(4) with:
(4) For the purpose of subclause (1)(a)(iii), the net quantity of electricity is the MW
consumed at a point in time (calculated in accordance with subclause (3)) less any MW generated from new generation (calculated in accordance with subclause (5)), where the contract is material to the generator’s decision to invest in the new generation.
Replace clause 13.268(5) with:
For the purposes of subclause (4), MW generated from new generation is:
the median MW expected to be generated by the new generating station in any trading period over the contract period following its commissioning, to be calculated using relevant industry standards for resource assessment data and accounting for all relevant factors reasonably expected to affect the new generating station’s contribution to the grid, including (without limitation and to the extent applicable) —
the efficiency of the new generating station:
degradation of the generating station’s performance over time:
the generating station’s operational availability:
fuel supply and quality:
the impact of climate oscillations such as the El Niño-Southern Oscillation,
Southern Annular Mode, or other relevant climate variability modes; or
to be calculated using an alternative methodology which is robust and supported by evidence that meets or exceeds industry standards for the appropriate resource assessment.
For the purpose of this subpart, related company has the meaning set out in section 2(3) of the Companies Act 1993.
Made at Wellington on 13 May 2026
Erik Westergaard Acting Chair Electricity Authority
Certified in order for signature:
Alexandra Parker Rachael Brown
Senior Legal Counsel Partner
Electricity Authority Bell Gully
5 May 2026 5 May 2026
This note is not part of the amendment but is intended to indicate its general effect.
This amendment to the Electricity Industry Participation Code 2010 comes into force on 1 July 2026.
The amendment clarifies aspects of the definition of a materially large contract (MLC) in Part 13 of the Code, including to make clear that it excludes bilateral contracts where the final price is at least the same as the spot price or an equivalent exchange-traded derivative or derivatives, and to adequately account for new intermittent generation when assessing whether a contract meets the MLC threshold.
This is secondary legislation issued under the authority of the Legislation Act 2019. | |
Title | Electricity Industry Participation Code (Materially Large Contract Definition) Amendment 2026 |
Principal or amendment | Amendment |
Consolidated version | No |
Empowering Act and provisions | Electricity Industry Act 2010, section 38 |
Replacement empowering Act and provisions | Not applicable |
Maker name | Electricity Authority |
Administering agency | Electricity Authority |
Date made | 13 May 2026 |
Publication date | 14 May 2026 |
Notification date | 14 May 2026 |
Commencement date | 1 July 2026 |
End date (when applicable) | Not applicable |
Consolidation as at date | Not applicable |
Related instruments | |