Feedback sought on Part 6A exemption and dispensation application from WEL Networks Limited

WEL Networks Limited (WEL Networks) and its senior management have applied for an exemption and dispensation from clause 6A.3 (which includes the requirement to comply with the arm’s length rules) and clause 6A.8 of the Electricity Industry Participation Code 2010.

We’re seeking feedback from stakeholders and industry regarding this application.

Part 6A of the Code requires distributors, connected generators, and specified persons involved in both of them, to comply and to ensure their businesses comply, with the corporate separation and arm’s length rules, if a connected generator has a total capacity of more than 50MW of generation.

WEL Networks is currently in the process of developing two solar farms and a network battery which will be connected to WEL Networks’ distribution network. The solar farms and battery, once constructed, will be transferred to Newpower Energy Limited (Newpower), a wholly owned subsidiary of WEL Networks. The total capacity of these generating assets is likely to be 65.34MW. This will exceed the 50MW threshold that triggers compliance with clause 6A.3 and the arm’s length rules.

Because of this, an application for an exemption has been submitted, supported by a report prepared by Sapere Research Group. We have subsequently received a request for a dispensation for senior management and expect to receive an exemption application from Newpower shortly.

Read the exemption application and Sapere report.

If you would like to comment on the application, please send your feedback to compliance@ea.govt.nz by 2 July 2024.

We will carefully consider the application and any feedback received.