The Gas Act enables Gas Industry Co to recommend to the Minister of Energy that regulations be made requiring industry participants to pay a levy to the industry body. The purpose of the levy is to recover the estimated costs of Gas Industry Co exercising its functions as the industry body. It is required to be established each year and there is a new consultation every year to achieve this. The objective of the Levy Arrangements project is to deliver a levy recommendation to the Minister of Energy, sufficient to fund the planned activities of Gas Industry Co in the relevant financial year and ensure that the balance of Industry Advances Reserve account is within acceptable limits.
The purpose of the Statement of Levy Principles is to describe the legislative authority, levy principles and levy structure Gas Industry Co uses when developing its levy recommendation for funding each year, under the levy provisions of the Gas Act 1992. The paper assumes all the topics covered within it have been settled and are agreed to.
The purpose of the co-regulatory forum is to give industry stakeholders the opportunity to provide GIC with their assessment of what its strategic priorities should be for FY2012. The proposed agenda will include an update on the status of the current work programmes and an overview of the indicative work programme for FY2012.
As well as assisting in the development of the levy proposal, the FY2012 work programme will form the basis of the Gas Industry Co Strategic Plan for FY2012-14. The Strategic Plan is presented each year to the Minister of Energy and Resources for approval and is a key document guiding the Company's operations.
To view the presentation, click here
A summary of industry participants' key priorities is also available here
The 2011 Levy Consultation Paper sets out the context for the proposed 2011 Levy Regulations by describing the work Gas Industry Co expects to undertake in FY2012 and its associated cost; calculates the levy funding requirement for that year; and proposes the 2011 levy.
To assist industry participants with submissions and to provide a prior indication of matters that will require consideration by Gas Industry Co, an industry workshop was held at Gas Industry Co's office in Wellington from 10am to 12 noon on Thursday, 20 January 2011.
To view the minutes from this workshop, click here.
On 24 March, the Gas Industry Co Board approved the submission of the FY2012 Levy Recommendation to the Associate Minister. Once accepted, levy regulations will be drafted by MED and PCO and submitted to Cabinet for approval. It is expected that the regulations should be in place by 1 July 2011.