Scroll to top

Overview

Gas Industry Co has previously determined that a gas retailer becoming insolvent will only lead to a market failure in limited circumstances, as normal insolvency processes should be sufficient to produce acceptable outcomes in most cases. Accordingly, there is no need for permanent backstop regulation such as a retailer of last resort scheme.

Gas Industry Co consulted on arrangements that would see it managing a specific retailer insolvency by:

  • monitoring the progress of any retailer insolvency;
  • where necessary:
    • tailoring pre-existing drafting instructions to the situation;
    • making a recommendation for urgent regulations; and
    • activating those regulations; and
  • cleaning-up after the event.

Because any regulations would be made under urgency, there would also be a requirement to consult retrospectively on those regulations.

This work programme came about as a result of the Gas Governance (Insolvent Retailers) Regulations 2010, which were created by the then Ministry of Economic Development using the urgent regulation-making provisions of the Gas Act (section 43P).

Gas Industry Co consulted retrospectively on those Regulations in March-April 2011. The outcome was a recommendation by Gas Industry Co to the Minister of Energy and Resources that the Regulations be allowed to lapse and consideration be given to whether a generic regulatory solution was required to address retailer insolvency.

Page last saved: December 16, 2016
Sign up to receive regular updates from Gas Industry Co

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

Copyright © 2017 Gas Industry Company | Website by PlasticStudio | Terms & Conditions