The Critical Contingency Operator (CCO) has declared a critical contingency at 10:50 on 23 May. Further information can be found on the CCO's website here.
Gas Industry Co was established in 2004 to perform the role of the ‘industry body’ as set out in Part 4A of the Gas Act 1992 (Act). In consultation with the industry, it develops an annual Statement of Intent, which includes an annual Work Programme, an indication of further activity in the following years, and associated funding requirements.
The Gas Act provides for a levy on industry participants to fund the activities of Gas Industry Co (as industry body) pursuant to that Act. Gas Industry Co as industry body incurs the costs of:
- making recommendations concerning any gas governance arrangements, including for regulations and rules under the Act;
- establishing, operating and facilitating the operation of markets for industry participants;
- providing advice to the Minister on matters concerning the gas industry;
- governance of the industry body;
- collecting the levy; and carrying out other functions of duties, or exercising any powers, under the Act.
These costs are all permitted to be recovered by Gas Industry Co through an industry levy. Further information on Gas Industry Co's forecast financial information can be viewed in the current Statement of Intent under related documents.
The objectives of the Levy Arrangements workstream 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 levy is required to be reset annually. The resetting process involves Gas Industry Co consulting with stakeholders on matters related to the levy and making a recommendation to the Minister on levy regulations for the year ahead. The current Levy Regulations for FY2017 and its related documents can be found here.
Previous Levies for financial years 2005 through to 2015 can be found in Previous Levies
The Company's policy is that, subject to the Company maintaining adequate capital reserves, the balance of the Industry Advances Reserves (IAR), comprising any over-collected levies and budget under-spend, be repaid to the industry as soon as practicable after the annual accounts have been received by shareholders at the Company's Annual Meeting.
Most recently, in respect of FY2016, the Board approved refunding the net surplus for that financial year of $331,757.
Since FY2010, refunds have been made from the Industry Advances Reserves account as set out in the following table (refer to the Company’s Annual Reports for further information):
Amount Refunded ($)
|FY2015||383,568||Total IAR refunded|
|FY2014||562,621||Total IAR refunded - includes variance from FY2013 paid out in FY2014|
|FY2013||509,253||Total IAR refunded|
|FY2012||287,998||$76,000 of FY2011 refund used for above workstreams; balance of IAR refunded|
|FY2011||0||Surplus retained to meet costs of GTIP and Critical Contingency workstreams|
|FY2005-2010||1,501,829||First year refund made to cover first six financial years|
Statement of Intent
Gas Industry Co publishes a Statement of Intent (SOI) each year pursuant to the requirements of the Gas Act 1992 (sections 43ZQ-43ZV). The SOI covers the immediate three financial years ahead, with information ranging from the nature and scope of operations, work programme objectives, their alignment with GPS outcomes, and financial and non-financial measures. The most current SOI (2017 - 19) is available below in Related Documents below.
The Levy Process
The Levy Process document attached below sets out the timeline for the development and implementation of the Statement of Intent and Levy Regulations.
The Statement of Levy Principles
The purpose of the Statement of Levy Principles document attached below 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.