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 2022, which came into force on 1 July 2021 is available here.

Current Arrangements: This section contains documents relating to the current FY2023 Levy for the period 1 July 2022 to 30 June 2023. 

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 2022 came into force on 1 July 2022. 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.

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
  • Gas Industry Co Statement of Intent 2023 2025
    3.9 MB Adobe Acrobat PDF file
  • Genesis Work Programme and Levy Submission
    129 KB Adobe Acrobat PDF file
  • Vector Work Programme and Levy Submission
    443 KB Adobe Acrobat PDF file
  • MGUG Work Programme and Levy Submission
    314 KB Adobe Acrobat PDF file
  • OMV Work Programme and Levy Submission
    307 KB Adobe Acrobat PDF file
  • Nova Work Programme and Levy Submission
    252 KB Adobe Acrobat PDF file
  • Haast Work Programme and Levy Submission
    170 KB Adobe Acrobat PDF file
  • Gas Levy of Industry Participants Regulations 2022
    341 KB Adobe Acrobat PDF file
  • Recommendation to Minister to make Levy Regulations 2022
    3.1 MB 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

Related Documents

  • 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
  • Statement of Intent 2020 - 2022
    1.7 MB Adobe Acrobat PDF file

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