The Commerce Commission seeks submissions on the application of Unison Networks Limited for exemption from certain provisions of the Electricity Industry Reform Act 1998. A copy of the application can be found under Public Registers on the Commission's website.

The Commission requests that all submissions be sent to the following address by 5pm Friday 23 September 2005:

The Registrar

Market Structure Group

Commerce Commission

PO Box 2351

Wellington

registrar@comcom.govt.nz

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

· 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.