New Zealand Gazette – 2004 – No. 139

Page 3467

✨ Gas Industry Governance Policy



29 OCTOBER 2004
NEW ZEALAND GAZETTE, No. 139

Consistent with this overall objective, the Government is seeking the following specific outcomes:

a) The facilitation and promotion of the ongoing supply of gas to meet New Zealand's energy needs, by providing access to essential infrastructure and competitive market arrangements;

b) Energy and other resources are used efficiently;

c) Barriers to competition in the gas industry are minimised to the long-term benefit of end-users;

d) Incentives for investment in gas processing facilities, transmission and distribution, energy efficiency and demand-side management are maintained or enhanced;

e) The full costs of producing and transporting gas are signalled to consumers;

f) Delivered gas costs and prices are subject to sustained downward pressure;

g) The quality of gas services and in particular trade-offs between quality and price, as far as possible, reflect customers’ preferences;

h) Risks relating to security of supply, including transport arrangements, are properly and efficiently managed by all parties;

i) Consistency with the Government's gas safety regime is maintained; and

j) The gas sector contributes to achieving the Government's climate change objectives by minimising gas losses and promoting demand-side management and energy efficiency.

Governance

6 To meet the policy objective and outcomes the Government invites the industry to establish an industry body in a co-regulatory governance setting. If an industry body is not established or if the industry body does not deliver the expected industry outcomes, the government will establish a Crown regulatory authority.

7 The recently amended Gas Act 1992 allows the Minister of Energy to recommend the approval of an industry body to recommend regulations and rules in the areas of wholesaling, processing, transmission and distribution of gas. For an industry body to be approved it must:

a) be broadly inclusive of industry participants (membership is not compulsory);

b) have a governance board with a majority of independent members including an independent Chair;

c) satisfy the Minister that it is capable of delivering outcomes that meet the Government's objectives for the gas industry;

d) have governing rules with objectives consistent with the Government's objectives for the industry body's recommendations on the wholesaling, processing, transmission, distribution and retailing of gas; and

e) allow all industry participants, except service providers appointed under any gas governance regulation, to become members of the industry body.

The Government invites the gas industry to form an industry body that meets the above criteria, and submit it to the Minister for approval no later than 31 October 2004.

Industry-led solutions

9 The Government expects the industry body to develop and submit to the Minister of Energy for approval proposed arrangements, including regulations and rules where appropriate, providing for effective industry arrangements in the following areas.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 139


Gazette.govt.nz — PDF NZ Gazette 2004, No 139




✨ LLM interpretation of page content

🏛️ Government Policy Statement on Gas Industry Governance

🏛️ Governance & Central Administration
29 October 2004
Gas Industry, Governance, Policy Statement, Commerce Commission, Economic Policy