Centro applies for electricity supply exemption

Australian retail property investor Centro Group has applied to the Commerce Commission for an exemption under the Electricity Industry Reform (EIR) Act .

The application relates to Centro's proposed acquisition of a number of retail shopping outlets. The properties are leased to third parties and Centro plans to supply electricity to these tenants from embedded electricity networks it would own and operate at each site.

The commission said in a statement the purpose of the EIR Act was to reform the electricity industry to make sure costs and prices were subject to downward pressure, by effectively separating electricity distribution from generation and retail.

The commission said it could only grant an exemption from the act if it would not inhibit competition in the electricity industry; it would not cross-subsidise generation activities from lines business; and if it would not result in a relationship between a lines business and a supply business that was not at arms length.

Earlier this month Centro said it had its Auckland consultants looking for more more shopping centres in New Zealand, after a $36 million spend up over the past few months.

Centro recently spent $12.5 million for the Meadowlands shopping centre in Auckland, and $23.4m for the Barrington mall in Christchurch.

It also owns the 7682sq m Kelston mall in Auckland and the 17,956sq m Porirua Mega Centre in Wellington.

- NZPA