The Commerce Commission has been asked to authorise several parts of the rules for the New Zealand Electricity Market which becomes fully-operative on October 1.
Commission Chairman Dr Alan Bollard said the company formed to administer the market, the Electricity Market Company (EMCO), has applied for authorisation of the pricing mechanisms, the prudential provisions and the metering standards in the rules.
Dr Bollard said the Commerce Act prohibits contracts and agreements that substantially lessen competition. However, it also allows them to be authorised if it can be shown that the public benefits they bring outweigh the detriments to competition.
Agreements between competitors, such as the rules under which they operate in a market, may breach the Act if they are not authorised.
An authorisation, if granted, protects contracts and agreements from court action under the Commerce Act.
In January, the Commission authorised an interim pricing arrangement for the period up to September 30. The rules it has now been asked to authorise would replace these interim arrangements.
The Commission expects to release a draft determination on the application by July 24 and to hold a conference beginning on August 19.
A final decision is expected to be made by September 13.
