Decision on Part 6A dispensation application from Infratil Limited

The Electricity Authority Te Mana Hiko’s decision is to grant a dispensation (with conditions) to Ms Urlwin under clause 6A.9(3) of the Electricity Industry Participation Code 2010 (Code) on the basis that compliance with the relevant obligations in Part 6A is not necessary for the purpose of achieving the Authority’s statutory objectives.

Any incentives or opportunities to inhibit competition in the electricity retailing markets, or opportunities to cross-subsidise retail activities, that could arise out of Ms Anne Urlwin’s cross-directorships will be effectively addressed by the proposed conditions on the dispensation.

The conditions prohibit Ms Urlwin from being present for or participating in any discussions or decision making by Infratil Limited (Infratil) or Vector Limited (Vector) regarding matters that relate to the supply or intended supply of electricity by Manawa Energy Limited (Manawa) on Vector’s network, or that could disadvantage any other business selling or generating electricity on Vector’s network.

Read the conditions and the details of, and reasons for, the dispensation notice.

The Electricity Authority received a dispensation application from Infratil on behalf of its director, Ms Urlwin, for a dispensation from the obligations in Part 6A of the Code relating to the separation of distribution from certain generation and retailing. We published the dispensation application, invited feedback and received one submission on the application.

Ms Urlwin is a director of Vector Limited (Vector) and Infratil. Infratil is not a participant, however it has a ~51.1% share in Manawa Energy Limited (Manawa). Manawa is a participant, and currently retails to customers connected to Vector’s distribution network above the thresholds stipulated in Part 6A of the Code.

Ms Urlwin is “involved in” Vector for the purposes of Part 6A. As a director of Infratil, the Authority considers Ms Urlwin is also “involved in” Manawa as she is deemed to have a material influence over Manawa under clause 7(2) of Schedule 2 of the Electricity Industry Act 2010. Accordingly, Manawa is a “connected retailer” under Part 6A of the Code and Ms Urlwin will be subject to certain obligations in that Part.

For any queries, contact compliance@ea.govt.nz