Overview

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 has three sources of funding. The primary source of funding for the Company is the levy. The other two sources are through an Annual Fee on Shareholders and Market Fees. The Levy component is authorised by way of Regulations which we recommend to the Minister annually. 

The Gas (Levy of Industry Participants) Regulations 2021, which came into force on 1 July 2021 is available here.

Current Arrangements: This section contains documents relating to the current FY2022 Levy for the period 1 July 2021 to 30 June 2022. 

Background: This section provides information on the levy setting process and principles as well as all Previous Levies, including past levy regulations and associated documents relating to past years' levies. 

 

Current Arrangements

The Gas (Levy of Industry Participants) Regulations 2021 came into force on 1 July 2021. Further information relating to the current levy including the consultation, submissions, and the recommendation to the Minister of Energy and Resources can be found below.

 

Key Areas

In December 2020, Gas Industry Co issued a paper: Consultation on Gas Industry Co FY2022 Work Programme and Levy, in respect of its proposed strategy, work programme, and levy for the year ending 30 June 2022 (FY2022).  

The Consultation Paper sets out the key elements of Gas industry Co’s Statement of Intent and the associated Levy Funding Requirement (LFR) to form part of the levy regulations for FY2022. Its contents reflect initial feedback received at the Company's Co-regulatory Forum held on 27 November 2020.

The proposed FY2022 work programme set out in that document included work on existing multi-year workstreams; meeting statutory requirements such as the administration of existing gas governance regulations; and sought to address Government and industry priorities through the completion of other key project deliverables. The work programme reflects significant progress already made in addressing the objectives and outcomes set for Gas Industry Co and the industry in the Gas Act and the Government Policy Statement (GPS).

A total of nine formal submissions were received. The Analysis of Submissions, Consultation Paper, the submissions received, and other relevant documents are available below.

The Gas (Levy of Industry Participants) Regulations 2021 came into force on 1 July 2021.

Related Documents

  • FY2022 Statement of Intent
    202 KB Adobe Acrobat PDF file
  • Analysis of Submissions on Gas Industry Co FY2022 Work Programme and Levy
    273 KB Adobe Acrobat PDF file
  • Recommendation to the Minister to make Levy Regulations 2021
    417 KB Adobe Acrobat PDF file
  • Gas (Levy of Industry Participants) Regulations 2021
    341 KB Adobe Acrobat PDF file
  • FY2022 Co-Regulatory Forum Presentation Slides (27 November 2020)
    325 KB Adobe Acrobat PDF file
  • Letter to the Minister re SOI & Levy FY2021 - March 2021
    111 KB Adobe Acrobat PDF file
  • Consultation on Gas Industry Co FY2022 Work Programme and Levy
    659 KB Adobe Acrobat PDF file

Submissions

  • Greymouth Gas New Zealand Limited
    Greymouth Gas NZ Ltd Levy FY2022 Submission 238 KB Adobe Acrobat PDF file
  • Trustpower Limited
    Trustpower submission on GIC FY2022 Work Programme and Levy 282 KB Adobe Acrobat PDF file
  • Genesis Energy Ltd
    GIC FY2022 Work Programme and Levy GENE 102 KB Adobe Acrobat PDF file
  • Major Gas Users Group
    2021 02 MGUG Comments on GICFY2022 319 KB Adobe Acrobat PDF file
  • Nova Energy Ltd
    Nova submission GIC FY2022 Work Programme and Levy 90 KB Adobe Acrobat PDF file
  • Firstgas Group
    FG Submission on GIC Workprogramme 214 KB Adobe Acrobat PDF file
  • Vector Limited
    Vector Submission GIC FY2022 Work Programme and Levy 230 KB Adobe Acrobat PDF file
  • OMV New Zealand Ltd
    OMV Submission GIC Levy FY2022 1.4 MB Adobe Acrobat PDF file
  • Powerco Limited
    Powerco submission on GIC FY22 work programme and levy 323 KB Adobe Acrobat PDF file

Developing

On 2 December 2021 we commenced consultation on the FY2023 levy (for the period 1 July 2022 to 30 June 2023) at our annual co-regulatory forum.  The co-regulatory forum registration pack and presentation slides can be found below.

A Consultation Paper was issued on 17 December 2021, with submissions due on 8 February 2022.  The eight submissions received can be found below.

Related Documents

  • FY2023 Co-Regulatory Forum Slide Pack
    1.1 MB Adobe Acrobat PDF file
  • FY2023 Co-Regulatory Registration Pack
    812 KB Adobe Acrobat PDF file
  • Consultation on Gas Industry Co FY2023 Work Programme and Levy
    644 KB Adobe Acrobat PDF file
  • Energy Resources Aotearoa Work Programme and Levy Submission
    125 KB Adobe Acrobat PDF file
  • Firstgas Work Programme and Levy Submission
    373 KB Adobe Acrobat PDF file
  • Genesis Work Programme and Levy Submission
    129 KB Adobe Acrobat PDF file
  • Haast Work Programme and Levy Submission
    170 KB Adobe Acrobat PDF file
  • MGUG Work Programme and Levy Submission
    314 KB Adobe Acrobat PDF file
  • Nova Work Programme and Levy Submission
    252 KB Adobe Acrobat PDF file
  • OMV Work Programme and Levy Submission
    307 KB Adobe Acrobat PDF file
  • Vector Work Programme and Levy Submission
    443 KB Adobe Acrobat PDF file

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 FY2021 and its related documents can be found here.

Previous Levies for financial years 2005 through to 2020 can be found below. 

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.

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

FY2020

$243,507

Balance of IAR refund after amounts retained for D+1 Project

FY2019

155,946

Total IAR refunded

FY2018

704,085

Total IAR refunded

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 costs 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 (2021 - 23) is available below.

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.

GUIDELINE FOR INDUSTRY PARTICIPANTS REGARDING PAYMENT OF THE LEVY AND MARKET FEES

The purpose of the Guideline for industry participants regarding payment of the Levy and Market Fees is to provide industry participants with guidance on when they must pay the levy and market fees and how the levy an market fees are determined

Key Areas

Related Documents

  • Statement of Intent 2020 - 2022
    1.7 MB Adobe Acrobat PDF file
  • Final Guideline for industry participants Levy and Market Fees
    364 KB Adobe Acrobat PDF file
  • The Statement of Levy Principles - updated December 2013
    342 KB Adobe Acrobat PDF file

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