The Commerce Commission has received an application from Marko Bogoievski seeking exemption from section 17 of the Electricity Industry Reform Act 1998 (EIR Act) in relation to his nomination as Infratil Limited's alternate director of Auckland International Airport Limited while Lloyd Morrison is on medical leave of absence.

Currently, Marko Bogoievski is the Chief Executive of HRL Morrison & Co Group Limited (HRL Morrison) and Infratil, a director of TrustPower Limited (TrustPower) and a director of a number of other companies.

Infratil is a specialist investor in infrastructure and utility assets owned wholly by HRL Morrison. Infratil is listed on the NZX and owns airports in New Zealand and Europe as well as energy and other investments in New Zealand and Australia. Infratil is the major shareholder in Wellington International Airport Limited and TrustPower and has shares in Auckland International Airport Limited.

A further HRL Morrison subsidiary, Morrison & Co Funds Management Limited also manages a shareholding in Auckland Airport held by New Zealand Superannuation Fund.

Section 17 of the EIR Act prohibits the cross-involvement of electricity lines and supply companies.

Background

The purpose of the EIR Act is to reform the electricity industry:

  • to better ensure that costs and prices in the electricity industry are subject to sustained downward pressure;
  • to ensure the benefits of efficient electricity pricing flow through to all classes of consumers; and
  • by effectively separating electricity distribution from generation and retail and promoting effective competition in electricity generation and retail markets.

The Commission may grant an exemption only where doing so:

a. would not result in certain involvements in electricity lines businesses and electricity supply businesses which may create incentives or opportunities:

i. to inhibit competition in the electricity industry; or

ii. to cross-subsidise generation activities from electricity lines businesses; and

b. would not result in relationships between electricity lines businesses and electricity supply businesses which are not at arms length.

For further information on the Commission's role within the EIR Act visit the Commission's website www.comcom.govt.nz under Electricity Industry Reform Act.

A public version of the application will be available on the Commission's website www.comcom.govt.nz under the Exemptions Register.