Submissions now closed.
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.
On 22 March, the Gas Industry Co Board approved the submission of the FY2013 Strategic Plan, Work Programme and Levy Recommendation to the 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 2012.
The FY2013 Strategy, Work Programme and Levy Statement of Proposal sets out the context and basis for the proposed levy to apply from 1 July 2012. It describes the strategic context for Gas Industry Co activity that the Company expects to undertake in FY2013 (and the associated cost), calculates the levy funding requirement for that year, and proposes the levy rates to apply from 1 July 2012.
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 on Thursday 2nd February 2012.
To view the workshop presentation click here.
The closing date for submissions on the Statement of Proposal was Friday 10 Feb 2012 at 5.00pm.
At an industry workshop held on 2 February to discuss the Statement of Proposal, a suggestion was made to change the method by which the wholesale component of the levy is collected. Gas Industry Co would like to receive industry submissions on this suggested change. As the suggestion is considered minor and technical, the period for submissions will be truncated.
The closing date for submissions is now Monday 20 February at 5.00pm.
FY2013 Strategy, Work Programme, and Levy Consultation
Gas Industry Co is preparing its Work Programme for the year ending 30 June 2013 (FY2013) and updating our Strategic Plan, covering the financial years 2013-2015. Between these two documents we aim to capture the strategic goals and the work requirements to deliver on our role as the industry body, in essence:
• seeking competition, efficiency and reliability in the delivery of gas to consumers; and
• delivering effective reporting on the current state and performance of the gas industry.
The Work Programme is also the basis for assessing the levy we will seek from the industry to fund our activities in FY2013 and our co-regulatory model relies on industry input.
The annual Co-regulatory Forum was held in Wellington on 18 November 2011, and Gas Industry Co is now preparing a formal consultation paper on the scope and cost of Gas Industry Co activities planned for FY2013. This will be circulated to stakeholders so they can make detailed submissions.
Summary of Indicative Work Programme
In this current FY2012 year, we continue to progress the Strategic Plan activities that address issues identified in previous consultation with stakeholders. In addition, we are engaged with the industry in addressing transmission access issues through the Gas Transmission Investment Programme (GTIP) and the Bridge Commitments.
The priority activities proposed in the Indicative Work Plan for FY2013 can be summarised as:
• Administering existing market arrangements, and in some cases completing reviews/improvements of those (Switching Rules, Reconciliation Rules, Critical Contingency Management Regulations, and the Compliance Regulations);
• Delivering scheduled outcomes for existing Strategic Plan commitments, including transmission pipeline balancing, improving gas quality arrangements, retail contract assessments, and distribution contract principles; and
• Addressing transmission capacity and access issues.
Submissions on the Indicative Work Plan