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Background

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 FY2018 and its related documents can be found here.

Previous Levies for financial years 2005 through to 2017 can be found in Previous Levies

Levy Refunds

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 FY2017, the Board approved refunding of $490,216.

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):

 

FINANCIAL YEAR

AMOUNT REFUNDED($)

NOTES

FY2017

490,216

Refund of historic wholesale levy amounts and repayment of amounts paid in error

FY2016

331,757

FY2016 net surplus 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 cots 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 (2018 - 20) 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.

Page last saved: October 17, 2017
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Get in touch

P 04 472 1800
A Gas Industry Co
Level 8, The Todd Building
95 Customhouse Quay
PO Box 10-646
Wellington 6143

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