Electricity Industry (Small-Scale Renewable Distributed Generation) Amendment Bill

1. Title

This Act is the Electricity Industry (Small-Scale Renewable Distributed Generation) Amendment Act 2018.

2. Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

3. Principal Act

This Act amends the Electricity Industry Act 2010 (the principal Act).

4. Section 5 amended (Interpretation)

In section 5, insert in their appropriate alphabetical order:

• distributed generation has the meaning given to it in the Code
• small-scale means under 10 kilowatts
• SSRDG means small-scale renewable distributed generation
• SSRDG electricity means electricity generated by SSRDG
• SSRDG electricity purchase agreement means a standard contract for the purchase of SSRDG electricity

5. Section 15 amended (Objective of Authority)

In section 15, after "reliable supply by,", insert "greater use of renewable energy, including from distributed generation sources, in,".

6. Section 16 amended (Functions of Authority)

After section 16(1)(h), insert:

• (ha) to prepare, and monitor the use of, the SSRDG electricity purchase agreement:

7. New sections 43A and 43B inserted

After section 43, insert:

43A. Specific new matters about SSRDG to be in Code

• (1) Before the date that is 1 year after this section comes into force, the Authority must have—
  • (a) amended the Code so that it includes all the new matters described in subsection (2); or
  • (b) if the Code does not include all the new matters, provided the Minister with a report as described in subsection (3).
• (2) The new matters are as follows:
  • (a) an SSRDG electricity purchase agreement prepared by the Authority that does the following:
  • (i) defines the roles of the parties to the agreement; and
  • (ii) provides a minimum term of 10 years; and
  • (iii) sets a fair and reasonable minimum rate, which must be greater than the wholesale electricity price and less than the retail electricity price, that retailers must pay for SSRDG electricity; and
  • (iv) provides mechanisms for the Authority to make an annual adjustment of the rate for new installations; and
  • (v) provides a process of connection for retailers and distributors that is simple, standard, consistent, and New Zealand-wide; and
  • (vi) provides for electricity distributors to ensure safe and on-going connections to their networks, including but not limited to compliance with AUS/NZ 5033; and
  • (vii) provides a process for SSRDG account reconciliation that is simple, standard, consistent, and New Zealand-wide; and
  • (viii) minimises administration and transactional costs; and
  • (ix) provides for the parties to vary the SSRDG electricity purchase agreement prepared by the Authority on terms that are more favourable to the seller of SSRDG electricity than those of the agreement:
  • (x) provides for any other matters relevant to establishing a fair regime for SSRDG:
  • (b) a requirement for consumers, retailers, and distributors to use, in situations to which it applies, the SSRDG electricity purchase agreement, or the agreement as modified under subsection (1)(a)(ix) (as the case may be):
  • (c) a requirement for the Authority to monitor use of the SSRDG electricity purchase agreement.
• (3) A report provided under subsection (1)(b) must—
  • (a) identify which new matters are not included in the Code; and
  • (b) explain why the Authority has not amended the Code to include those matters; and
  • (c) suggest alternative methods by which the matters are or may be provided for; and
  • (d) set out if, when, and how the Authority proposes to provide for the matters.

43B. Minister may amend Code to include new matters about SSRDG

• (1) The Minister may amend the Code by including provisions for any of the new matters identified in section 43A(2) if—
  • (a) the Minister considers that the Code’s provisions for a new matter are not satisfactory; or
  • (b) the Minister considers that, in light of the Authority’s report given under section 43A(1)(b), it is necessary or desirable for the Minister to amend the Code to include provisions for the matter in the Code.
• (2) The Minister may amend the Code as if he or she were the Authority, and sections 37 to 40 apply accordingly.
• (3) Before amending the Code, the Minister must—
  • (a) consult with the Authority (in addition to any consultation required under section 39); and
  • (b) be satisfied that the amendments will achieve the Authority’s objective in section 15.
• (4) The power given by this section may not be exercised earlier than 1 year after, and not more than 3 years after, the date on which this section comes into force.

8. New section 44A inserted (SSRDG electricity purchase agreements bind subsequent landowners)

After section 44, insert:

44A. SSRDG electricity purchase agreements bind subsequent landowners

A SSRDG electricity purchase agreement runs with the land until the agreement’s term ends.

B.88 - Electricity Industry (Small-Scale Renewable Distributed Generation) Amendment Bill was submitted by the Minister of Regions (/u/Kingethan15 United Future) on behalf of the government.

First reading debate will conclude at 9 am, 31 October 2018