The Commerce Commission today granted Auckland International Airport Limited (AIAL) an exemption from the Electricity Industry Reform Act (EIR Act) until May 12.

Commissioner Dr Kate Brown said that the temporary exemption is to allow AIAL time to sell one of its electricity businesses. AIAL owns and operates an electricity network at the airport site and also sells electricity to tenants on the site.

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 originally applied for a permanent exemption. The Commission declined the 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.

AIAL then applied for temporary exemption during which it would sell one of its electricity businesses.

Copies of the Commission's decision are available from reception at its Wellington office, level 7 Landcorp House 101 Lambton Quay and will soon be available from its website www.comcom.govt.nz

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