Some submissions on Gas Industry Co's November 2010 Retail Competition and Transmission Capacity: Statement of Proposal expressed a strong preference for a non-regulated approach to improving competition in the retail market supplied by Vector's North Pipeline.
On 14 April Gas Industry Co held a workshop to explore ways to improve competition without regulation.
Feedback following the Workshop:
On 15 September 2010 Gas Industry Co held a workshop with a small group of participants to consider design options for addressing the current competition issue.
The agenda and presentation from the workshop are available below
Gas Industry Co invited feedback on several questions regarding several points discussed at the workshop. The questions and a summary of the responses to those questions are available below:
Date Published: 12 November 2010
In the paper Retail Competition and Transmission Capacity: Statement of Proposal, Gas Industry Co proposed introducing the Gas Governance (Constrained Transmission Pipeline) Rules.
The Rules are Gas Industry Co's preferred option for ensuring there are no unintended effects on competition arising from a TSO's commercial arrangements for transporting gas on constrained transmission pipeline.
The Bridge Commitments are a series of commitments made by the majority of shippers aimed at addressing short term concerns about competition on the North Pipeline. They have been in place since August 2011
Following the April 2011 Retail Competition workshop, key members of the gas industry put in place a package of measures to address the short-term issues large end users on the constrained North Pipeline were facing. The 'Bridge Commitments' comprise seven commitments. Notably each signatory supplier agreed that, where it supplies an end user, and that end user tenders its gas supply, it will make pipeline capacity available to competing suppliers.
Gas Industry Co assessed the Bridge Commitments and considered that they should:
· ensure existing large end users on the constrained North Pipeline have an effective choice of supplier in the short term;
· help to facilitate development of longer term access arrangements and investment; and
· materially change the market.
As a result of these conclusions, Gas Industry Co determined that intervention by way of Rules was not justified at this time.
Gas Industry Co will continuously monitor the effectiveness of the Bridge Commitments and update industry if anything occurs that may change its assessment.
In the mean time Gas Industry Co continues to work with the industry on the Gas Transmission Investment Programme. For more information on this work please refer to the 'Long-term' tab.
A detailed assessment of the Bridge Commitments in the context of short-term capacity work, issued in August 2011, can be found here:
Gas Industry Co's news release on this work can be found here: News release
In September 2011, Vector Limited sent a letter to Shippers updating them on progress made under the Bridge Commitments.
A copy of the letter can be found here: Vector letter to Shippers
Gas Industry Co's progress reports on the Bridge Commitments is available below
Following the 14 April workshop Gas Industry Co developed a proposal for a Gas Transmission Investment Project.
Feedback on the proposal
Individual industry participants say that the need for new investment is a significant issue for the industry, possibly even the most pressing and important issue. Yet there is no forum in which key stakeholders are frankly discussing the issue.
On April 14, Gas Industry Co held a workshop to consider whether, how and when investment in additional North Pipeline capacity should occur, and what associated commercial access arrangements should be.
Background Material for the workshop:
Gas Industry Co held a workshop on capacity on Wednesday 18 August 2010. The presentations from the workshop are available below.
Gas Industry Co held a workshop on the Capacity Options paper on
Wednesday 9 June 2010. To view the workshop presentation, please click
Date Published: 27 May 2010
Date Published: Thu, 27/05/2010- 15:53 Author Ian Wilson
In December 2009, the Associate Minister of Energy and Resources requested that Gas Industry Co complete a paper exploring transmission capacity issues and options. The Options for Vector Transmission Capacity paper considers Vector's options for changing its commercial arrangements for transporting gas on its transmission pipelines.
Capacity Requested GJ/Day
|19 Oct 2010||Rotowaro||Wellsford||1|
|19 Oct 2010||Rotowaro||Greater Auckland||274|
|4 Apr 2011||Rotowaro||Greater Auckland||308|
|31 May 2011||Rotowaro||Greater Auckland||835|
|24 Jun 2011||Rotowaro||Greater Auckland||210|
|24 Jun 2011||Rotowaro||Whangarei||3|