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Ongoing Costs

Regulations 81 to 84 of the Compliance Regulations provide for ongoing compliance fees to be paid on a monthly basis to meet the ongoing compliance costs. The ongoing fees are payable by participants under any gas governance rules and regulations:

  • to which the Compliance Regulations apply; and
  • that provide for ongoing fees to be paid to Gas Industry Co.

The Compliance Regulations currently apply to the Gas (Switching Arrangements) Rules 2008, Gas (Downstream Reconciliation) Rules 2008 and Gas Governance (Critical Contingency Management) Regulations 2008. To the extent that any compliance costs cannot be recovered through ongoing fee provisions, they will be recovered through the levy. To date there have been no such recoveries of compliance costs from the levy. The ongoing compliance costs include:

  • The costs payable by Gas Industry Co to the Market Administrator, any Investigators, and the Rulings Panel; and
  • Gas Industry Co's external costs associated with the operation of, and its obligations under, the Compliance Regulations during the year.

Gas Industry Co has determined that the compliance ongoing costs should exclude any overhead costs or policy work resulting from operational activities under the Compliance Regulations. Any such work is to be funded from the levy. The compliance ongoing costs therefore only relate to other direct external costs in connection with Gas Industry Co administering the Compliance Regulations and carrying out the Market Administrator role.

Prior to the start of each financial year, Gas Industry Co is required to determine and publish a breakdown of the estimated compliance costs to be recovered in that financial year. As soon as practicable after the end of each financial year, Gas Industry Co must determine and publish the actual compliance costs for that financial year apportioned to the relevant rules and regulations. Gas Industry Co must then invoice, or issue a credit note to, every person liable to pay the ongoing fees, with the difference between their share of the actual compliance costs and the amount of the estimated compliance costs paid by that person. 

Ongoing costs for previous years costs are found on the left-hand navigation of this page.

 

Ongoing Costs for FY2020 (1 July 2019 to 30 June 2020)

Cost Category

Estimate

Investigator

$20,000

Rulings Panel

$25,000

Expert Advisers and Expenses

$10,000

Total Ongoing Costs

$55,000 


Apportionment of compliance ongoing costs for FY2020

Rule/Regulation

Share of Ongoing Costs

Estimate

Reconciliation Rules

35%

$19,250

Switching Rules

35%

$19,250

CCM Regulations

30%

$16,500

 

 

Ongoing Costs for FY2019 (1 July 2018 to 30 June 2019)

Cost Category

Estimate

Investigator

$25,000

Rulings Panel

$20,000

Expert Advisers and Expenses

$10,000

Total Ongoing Costs

$55,000 


Apportionment of compliance ongoing costs for FY2019

Rule/Regulation

Share of Ongoing Costs

Estimate

Reconciliation Rules

35%

$19,250

Switching Rules

35%

$19,250

CCM Regulations

30%

$16,500

 

 

Ongoing Costs for FY2018 (1 July 2017 to 30 June 2018)

Cost Category

Estimate

Actual

Rulings Panel

$25,000

$25,000

Investigator

$20,000

-

Expert Advisers and General Expenses

$10,000

$2,050

Total Ongoing Costs

$55,000

$27,050

Over-Recovery $27,950


Apportionment of compliance ongoing costs for FY2018

Rule/Regulation

Share of Ongoing Costs

Reconciliation Rules

35%

Switching Rules

35%

CCM Regulations

30%

 

Page last saved: April 04, 2019
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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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