The Commerce Commission has received an application from Wayne Boyd for an exemption under the Electricity Industry Reform Act 1998 (EIR Act) in relation to his proposed appointment as a director of Meridian Energy Limited (Meridian).
Mr Boyd is presently Chairman of the Board of Directors of Auckland International Airport Limited (AIAL). His appointment to the Meridian Board would result in Mr Boyd having a material influence over both AIAL's electricity lines business (in respect of its internal network) and Meridian's electricity supply business. Mr Boyd seeks an exemption from s 17 of the EIR Act which prohibits such cross-involvement.
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.
