The Commerce Commission expects to release a decision this week, explaining how the Electricity Industry Reform Act (EIR Act) applies to property companies.

Commissioner Dr Kate Brown said that, on April 1, the Commission released its preliminary view that the EIR Act does apply to property companies that also sell at least 2.5GWh of electricity a year and they must comply with it.

The Commission expects to release its final decision by Wednesday this week.

The EIR Act requires companies involved in electricity markets in New Zealand to separate their lines businesses from their electricity retailing and generation businesses or have an exemption from the Commission.

The Commission's preliminary view is that the definitions in the EIR Act include wiring in buildings as a lines business and selling electricity to tenants as a supply business.

Trans Tasman Properties Limited (TTPL) was the first property company to apply for an exemption and it is that decision which will be released this week.

Since TTPL's application two other property companies have also applied for exemption, Fletcher Property Limited last month and Colwall Property Investment Limited today.

In addition, the Commission has received many requests for information from other property companies, lawyers and investment advisors.

Dr Brown said that the Commission has no specific dates by which it expects to make the Fletcher and Colwall decisions but, with the work done for the TTPL application, they should proceed quickly.

Public copies of the Colwall application are available from reception at the Commission's Wellington office, level 7, Landcorp House, 101 Lambton Quay.

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