Electricity Authority lodges formal complaints over alleged Code breaches

The Electricity Authority Te Mana Hiko (Authority) has lodged two separate formal complaints with the Rulings Panel alleging a breach of the Electricity Industry Participation Code 2010 (Code) by grid owner Transpower and retailer South Pacific Energy Limited.

The Code sets out the duties and responsibilities for all participants in New Zealand's electricity industry. The Authority can enforce compliance with the Code to ensure improved industry practice.

The complaint against Transpower as grid owner alleges it applied incorrect protection settings on 14 February 2023 in breach of clause 4(4)(a)(ii) of Technical Code A, Schedule 8.3 of the Code.

The Authority lodged this complaint because the grid owner appears to have made a conscious decision not to address the risks identified with its asset; the potential operational and security impact could have been greater if the trip event had occurred on a larger grid connection point; and the Authority aims to prevent similar incidents happening in the future.

The complaint against South Pacific Energy alleges the retailer failed, on a number of occasions in 2024 and 2025, to meet payment deadlines and made deposits in incorrect accounts in breach of clauses 14A.6(2), 14.31(1)(a) and 14.32(1) of the Code.

The Authority lodged this complaint because South Pacific Energy, based on the number of alleged Code breaches, did not exercise due care and consideration for payment obligations; the breaches indicate a history of non-compliance which has an operational impact on the clearing manager; and the Authority aims to prevent the risk of recurrence.

The Rulings Panel is an independent body that determines breaches of the Code and may make appropriate remedial orders under section 54 of the Electricity Industry Act 2010.

If the Rulings Panel upholds a complaint, it has the power to make remedial orders against industry participants. Remedial orders include pecuniary penalties, compliance orders, compensation orders, and private and public warnings or reprimands.

Under the Electricity Industry (Enforcement) Regulations 2010, the total liability for an asset owner in breach of Part 8 of the Code (including both pecuniary penalties and compensation orders) is limited to $2 million. The liability limit applying to other industry participants in breach of Part 14 of the Code is limited by the Electricity Industry Act 2010 to a pecuniary penalty not exceeding $2 million and a further amount not exceeding $10,000 for every day or part of a day during which the breach continues.

The full details of the complaints are detailed in the following notices.