The Commerce Commission has received an application from James Peters and the Peters group of companies for an exemption under the Electricity Industry Reform Act 1998 (EIR Act) in relation to the proposed acquisition by one of those companies of part of the block known as the Finance Centre on the corner of Albert Street and Victoria Street, Auckland.
The proposed acquisition would result in a cross-involvement in an electricity lines business and an electricity supply business, prohibited by section 17 of the EIR Act.
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 and 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 in respect of a business or involvement or interest, 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.
