About Gas Industry Company

Date Published: Mon, 08/12/2008 - 12:26 Author: content
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Gas Industry Company

Gas Industry Company Limited is an industry-owned entity established to fulfil the role of the industry body under the Gas Act 1992. It is the co-regulator of the gas industry, working with both the Government and the industry to develop outcomes that meet the policy objectives as stated in the Government'April 2008 Policy Statement on Gas Governances April 2008 Policy Statement on Gas Governance.

 

As a co-regulatory body, Gas Industry Co is able to make recommendations to the Minister of Energy on a wide range of industry matters, including the making of rules and regulations in relation to the wholesaling, processing, transmission, distribution and retailing of gas.

 

The Government's overall policy objective for the gas industry is

 

'To ensure that gas is delivered to existing and new customers in a safe, efficient, fair, reliable and environmentally sustainable manner.'

 

Gas Industry Co is committed to: 

  • Developing industry-led solutions to issues facing the gas industry in New Zealand;
  • Being consultative with industry participants and consumers;
  • Being professional and independent, with transparent processes;
  • Acting with integrity, responsibility and respect; and
  • Achieving high standards of excellence.

History

Gas Industry Co is a company incorporated under the Companies Act 1993. It was established by the New Zealand gas industry to be the industry body under the Gas Act 1992.

A comprehensive review of the gas sector by the Government in 2001 and 2002 resulted in changes to the Gas Act in 2004 that enabled the establishment of an industry body. The objective of that review was to ensure the gas sector could meet the Government’s overall energy policy objective, which is to ensure that energy is delivered to all classes of consumers in a safe, efficient, fair, reliable and environmentally sustainable manner.

In its Policy Statement released in March 2003, the Government stated that it favoured industry-led solutions where possible, but that it was prepared to use regulatory solutions where necessary. This arrangement was consistent with a regime based on self-regulation, and the gas industry was invited to establish a governance structure and work programme.

The Gas Industry Steering Group (GISG) was formed to respond to the Policy Statement. Following consideration of the requirements and the proposed self-regulatory governance structure, it advised that the industry would require some form of regulatory backing to achieve the Government’s objectives and outcomes. The Government agreed and changes to the Gas Act were enacted to give effect to a co-regulatory model of governance.

To provide for such a model, the Government Policy Statement on Gas Governance (GPS) was published in October 2004. This was replaced in April 2008 by the latest GPS. This sets out the specific outcomes that the Government expects Gas Industry Co to pursue. The Gas Act provides for the Government to create an Energy Commission if the industry body does not achieve the Government’s required objectives.