Commission grants EIR Act exemption to Mr Wayne Boyd
The Commerce Commission has granted an exemption under the Electricity Industry Reform Act 1998 (EIR Act) to the
Chairman of the board of Auckland International Airport Limited (AIAL), Mr Wayne Boyd, in respect of his impending
appointment to the Meridian Energy (Meridian) board.
The EIR Act would deem Mr Boyd to have material influence over AIAL’s electricity lines business (in respect of its
internal network) and over Meridian’s electricity supply business. Mr Boyd had applied for an exemption from s 17 of the
EIR Act which prohibits such cross-involvement
Chair Paula Rebstock said that the Commission considers that provided there is no relationship between the two companies
in which Mr Boyd would be cross-involved, his application passes the Commission’s criteria for granting exemptions from
s 17 of the EIR Act.
“The Commission has made it a condition of the exemption that there should not in future be any connection or
relationship between the two companies in respect of electricity distribution or supply whilst Mr Boyd remains involved
in both,” said Ms Rebstock.
“In other words, Meridian should not become an electricity retailer to consumers connected to AIAL’s electricity
distribution network.”
A public version of the Commission’s decision is available at http://www.comcom.govt.nz/PublicRegisters/eira.aspx
Background
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.
For further information on the Commission’s role within the EIR Act, visit the Commission’s website,http://www.comcom.govt.nz/acts/eiract/.