Electricity Authority - Chair
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About the Authority
Electricity Authority
The Electricity Authority (the Authority) is established under the Electricity Industry Act 2010 (the Act) and is responsible for governance and regulation of the electricity sector. The Authority’s objective is to promote competition in, reliable supply by, and efficient operation of, the electricity market for the long-term benefit of consumers.
As set out in section 16 of the Act, the Authority’s key functions are to:
- make and administer rules governing the electricity industry through an Electricity Industry Participation Code (the Code)
- monitor compliance with the Code and other provisions in the Act and regulations, and take enforcement action
- undertake market facilitation measures, such as education, and provide guidelines, information, and model arrangements
- undertake industry and market monitoring, and carry out reviews, studies, and enquiries into matters relating to the industry
- contract for market operation services and system operator services
- promote to consumers the benefits of comparing and switching retailers.
The Authority is a Crown entity
The Authority is an independent Crown entity. The Crown Entities Act 2004 provides a framework for Crown entity governance and accountability, including responsibilities of board members, disclosure of interests, and the roles of Ministers. For more information about the Authority, see the Electricity Authority website(external link).
Authority membership
Role of the Chair
A Crown entity Chair should:
- Provide effective leadership and direction to the board and entity, consistent with the purpose of the entity and Ministers’ expectations.
- Ensure effective accountability and governance of the entity, consistent with the requirements of relevant legislation, including the Crown Entities Act.
- Develop and maintain sound relationships with Ministers and their advisors including:
- leading any formal entity discussions with Ministers, particularly on budget and planning cycles, including the Statement of Intent and Letter of Expectations
- signing off on formal governance documents (Statement of Intent, Annual Report, others), generally in conjunction with the Deputy Chair (if appointed)
- acting as spokesperson for the Authority to ensure that Ministers and other key stakeholders are aware of the Authority’s views and activities, and that Ministers' views are communicated to the Authority.
- Keep the responsible Minister informed under the 'no surprises' approach.
- Act as the leader of the entity, including presenting the entity's objectives and strategies to the public. Represent the entity to government and stakeholders, including attending any select committee appearance by the entity.
- Chair Authority meetings, including:
- setting the annual Authority agenda and ensuring there is sufficient time to cover issues, ensuring the Authority receives the information it needs and that contributions are made by all members and assisting discussions towards the emergence of a consensus view and summing up so that everyone understands what has been agreed.
- Ensure appropriate policies and structures are in place to support the Authority, including processes in accordance with Schedule 5 of the Crown Entities Act. This includes procedures relating to the notice of meetings, methods of holding meetings, quorum, special meetings, voting, and resolutions. The full schedule can be found on http://www.legislation.govt.nz(external link).
- Take the lead, often in conjunction with the monitoring department, in providing comprehensive tailored induction for new Authority members.
- Ensure that the development needs of individual Authority members are identified and addressed and, where necessary, dealing with underperformance by members.
- Ensure that a regular performance evaluation is conducted of the Authority as a whole, as well as of the Chair and members individually.
- Participate in the recruitment process for new Authority members. This is likely to include maintaining a view on the desired composition of the Authority, considering succession planning for members, Chair, and supporting Ministers and monitoring departments in appointing and reappointing Authority members.
- Provide guidance and support to the Chief Executive to ensure the entity is managed effectively. This includes establishing and maintaining an effective working relationship with the Chief Executive while also taking an independent view to challenge and test management thinking.
- Oversee the employment of the Chief Executive, including considering succession planning, and organising induction for a new Chief Executive.
- Represent the Authority in formal assessments of the Chief Executive's performance and in the required discussions with the Public Service Commission with respect to Chief Executive terms and conditions at time of appointment and performance reviews.
- Ensure that appropriate interest registers are in place, in accordance with the Crown Entities Act, and that members' conflicts of interest (including those of the Chair) are dealt with appropriately.
Note: where the Chair is unavailable, absent or conflicted, the Deputy Chair (if appointed) will fulfil these roles. A Chair may also delegate various roles at times, for example to another Authority member.
Collective and individual duties of Authority members
The individual duties of Authority members are:
- to comply with the Crown Entities Act 2004 and the Electricity Industry Act 2010,
- to act with honesty and integrity, in good faith, and not at the expense of the entity’s interests, with reasonable care, diligence, and skill, and
- not to disclose or make use of information that otherwise would not be available to them.
Further information on how the relationships between Crown entities, Ministers, and departments work in practice can be found on the Public Services Commission’s website (http://www.ssc.govt.nz/it-takes-three-operating-expectations-framework(external link)).
Under section 14(1) of the Electricity Industry Act 2010, no member of the Authority, when acting as a member, may represent or promote the interests or views of any organisation or any particular industry participant or group of industry participants.
Membership of the Authority
The Authority comprises between five and seven members. Members are appointed by the Governor-General on the recommendation of the Minister for Energy for terms of up to five years. Collectively, members of the Authority must have knowledge and experience of, and capability in:
- the electricity industry
- consumer issues
- business generally.
Members must be aware of the importance of personal integrity and the need to disclose any interests they have or are likely to have in matters relating to the Authority, whether or not these create a conflict of interest. Members must also be sure that they have the interest and enthusiasm needed to contribute effectively to the performance of the entity throughout their term of membership.
Time commitment and remuneration
The fee payable to members of the Authority for carrying out their duties is set by the Remuneration Authority. Members receive their determination from the Authority at the time they take up their appointment. Members are entitled to receive reasonable and actual allowances for travelling and other expenses relating to performance of their duties.
The Authority member positions are part-time. The Authority meets in Wellington on a regular basis. In addition, members of the Authority are required to spend time preparing for meetings and on other Authority matters. The time needed for the Chair is likely to be two to three days per week.
Authority members are expected to attend and participate regularly in meetings consistent with general fiduciary standards and the governance requirements under the Crown Entities Act.
Person specifications
Specific skills required
At this time, the Minister for Energy is seeking candidates with:
- Proven track record of governance experience as a Chair, in particular, within the Crown environment.
- A genuine interest in ensuring New Zealand has an efficient and effective market and security of supply.
- Extensive knowledge of regulatory issues, such as regulatory compliance, regulatory systems management and regulatory economics.
- Experience in the operation of large commercial entities and strong business acumen.
Other useful skills and capabilities
- Experience in industries which use, produce or distribute large volumes of electricity.
- Knowledge of emerging trends in generation, supply, and use.
- Experience with major infrastructure projects.
Collectively, members of the Authority must have knowledge and experience of, and capability in the electricity industry, consumer issues, and business generally.
Additional information
For further enquiries about the position, email: boardappointments@mbie.govt.nz