Licence conditions – licence authorising operation of an electricity network
26 Licence conditions – licence authorising operation of an electricity network
(1) The Utilities Commission may, on granting a licence authorising the operation of an electricity network, make the licence subject to any of the following conditions determined by the Utilities Commission:
requiring compliance with directions of the system controller;
(b) requiring the electricity entity not to do anything affecting the compatibility of the entity's electricity network with any electricity generating plant or other electricity network so as to prejudice public safety or the security of supply;
(c) requiring compliance with Chapter 5 of the National Electricity Rules, section 38 and specified provisions of the regulations;
(d) requiring the electricity entity not to buy or sell electricity directly or indirectly except if it is:
(i) necessary to operate the entity's electricity network or for a purpose associated with planning, designing, constructing, maintaining or operating the network; or
for the electricity entity's administrative purposes; or
for a purpose specified in the conditions;
(e) requiring the electricity entity to operate, maintain (including repair and replace if necessary) and protect its electricity network;
(f) requiring the electricity entity to operate the electricity network in coordination with other electricity networks to which it is connected directly or indirectly;
(g) requiring the electricity entity to maintain specified accounting records and to prepare accounts according to specified principles;
(h) if the electricity entity is a related body corporate in relation to an electricity entity granted a licence authorising the generation or selling of electricity – requiring the business of operating the electricity network authorised by the licence to be kept separate from any other business of the electricity entity or any other person in the manner and to the extent specified in the conditions;
requiring the electricity entity:
(i) to grant to each electricity entity holding a licence authorising the generation of electricity rights to use or have physical access to the entity's electricity network that are necessary for the purpose of ensuring the proper integrated operation of the power system and the proper carrying on of the operations authorised by the entity's licence; and
(ii) in the absence of agreement as to the terms on which those rights are to be granted – to comply with any determination of the Utilities Commission as to those terms;
(k) requiring a specified process to be followed to resolve disputes between the electricity entity and customers as to the transmission and distribution of electricity;
(m) requiring the electricity entity to be responsible for network control of its electricity network.
(2) A condition of an electricity entity's licence imposed under subsection (1) is not to be taken to require the granting to other electricity entities of rights to use or have access to the entity's electricity network for the support or use of electricity infrastructure of the other entities other than in accordance with a connection agreement.
(3) This section does not limit the matters that may be dealt with by terms or conditions of a licence authorising the operation of an electricity network.
This provision refers to the regulations (the regulations
). Made under this Act:
This Act’s bill:Second reading speech
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