Arm's-Length Rules

Under Part 3 of the Electricity Industry Act 2010 (the Act), distributors like Aurora are required to report compliance with the arm's-length rules set out in schedule 3 of the Act.  The purpose of Part 3 is to promote competition in the electricity industry:

a)  by prohibiting a person who is involved in a distributor from being involved in a generator where that may inhibit competition in the electricity industry; and
b) by restricting relationships between a distributor and a generator or a retailer, where those relationships may not be at arm's-length.

Neither Aurora nor its Directors are involved (as defined by the Act) in electricity generation or electricity retail businesses.  Accordingly all of Aurora's dealings with electricity generators and electricity retailers are independent and entirely at arm's length.