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Electricity Reform Act 2000
26Licence conditions – licence authorising operation of an
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26 Licence conditions – licence authorising operation of an
electricity network
operation of an electricity network, make the licence subject to any
of the following conditions determined by the Utilities Commission:
(a) 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
Electricity Reform Act 2000 16
(ii) for the electricity entity's administrative purposes; or
(iii) 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;
(j) 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
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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.