The Commerce Commission has received a second application from Auckland International Airport Limited (AIAL) for an exemption from the Electricity Industry Reform Act (EIR Act).

Commissioner Dr Kate Brown said that the Commission declined AIAL's first application on two grounds. These were that should AIAL retain ownership of both its electricity lines and supply businesses, an exemption would have:

· provided AIAL with incentives or opportunities to inhibit competition in the national retail electricity market; and

· allowed a relationship between AIAL's electricity lines and supply business that would not be at arms length.

In its second application, AIAL has applied for temporary exemption during which it would sell one of its electricity businesses.

Dr Brown said that the Commission had not yet estimated the date by which it expects to make its decision.

Background

The EIR Act was passed last year and gives companies involved in electricity markets until April 1 this year to put in place corporate separation of their electricity generation and trading businesses from their lines businesses or to have obtained an exemption from the Commission.

AIAL is covered by the EIR Act because it owns and operates an 11KV network on the airport site and sells electricity to customers on the site.

Media contact: Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz