The Commerce Commission has received a second application for exemption by a property company from the Electricity Industry Reform Act (EIRA Act) and expects more soon.

Commissioner Dr Kate Brown said that the Commission's preliminary view, that the Electricity Industry Reform Act (EIR Act) can apply to property companies, has generated considerable interest in the property industry.

Fletcher Property Limited has applied for an exemption so that it can continue to sell electricity to its tenants. The Commission is now also receiving many requests for information from property companies, investors, lawyers and business advisors about how the EIR Act applies to businesses that sell electricity and own power lines.

Dr Brown said that last week the Commission reached a preliminary view that property companies which convey and sell at least 2.5GWh of electricity to tenants are covered by the EIR Act. The EIR Act requires these companies to comply from April 1 or have an exemption from the Commission.

The EIR Act requires companies in electricity markets to separate their lines businesses from their electricity supply and generation businesses. 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.

The other property company to have applied for an exemption is Trans Tasman Properties Limited (TTPL). Dr Brown said that the Commission expects to make its decision on TTPL's application next week.

Other non-traditional power companies that have applied for exemptions from the EIR Act are Auckland International Airport Limited, BHP New Zealand Steel Limited, Carter Holt Harvey Limited and the New Zealand Defence Force.

Public copies of Fletcher Properties 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