Explore this Work Programme:
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.
The Gas Levy of Industry Participants is our main source of funding. 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 2024 came into force on 1 July 2024.
More information about market fees
Guideline for industry participants regarding payment of the levy and market fees (PDF 365KB)
Key areas
Current arrangements: This section contains documents relating to the current FY2025 Levy for the period 1 July 2024 to 30 June 2025.
Background: This section provides information on the levy setting process and principles as well as all previous levies by year. Each year's page includes the regulations and associated documents.
Current arrangements
The Gas (Levy of Industry Participants) Regulations 2024 came into force on 1 July 2024.
Gas (Levy of Industry Participants) Regulations 2024 (Legislation.govt.nz)
See Related documents below for the 2024 levy regulations, our recommendation to the Minister of Energy, our analysis of submissions and the levy consultation document.
The submissions are available on the Levy 2024-2025 page.
Related documents
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.
About the levy
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.
We are permitted to recover these costs through an industry levy. More information on our forecast financial information is available in our current Statement of Intent 2025-2027. See related documents.
The objectives of the Levy arrangements workstream is to deliver a levy recommendation to the Minister of Energy, sufficient to fund our planned activities 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 us 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 FY2025 and its related documents can be found in the Current arrangements section.
Previous levies for financial years 2005 through to 2024 can be found below under Previous levies.
Levy refunds
Our policy is that, subject to the Gas Industry Company maintaining adequate capital reserves, the balance of the Industry Advances Reserves (IAR), comprising any over-collected levies and budget underspend, be repaid to the industry as soon as practicable after the annual accounts have been received by shareholders at our Annual Meeting.
Since FY2010, refunds have been made from the Industry Advances Reserves account as set out in the following table. Refer to our annual reports for more information.
There have been no refunds since 2020.
|
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
We publish a Statement of Intent (SOI) each year as required under 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 the Gas Policy Statement (GPS) outcomes, and financial and non-financial measures.
The current SOI (2025 - 2027) is available below in Related documents.
The Statement of Levy Principles
The Statement of Levy Principles describes the legislative authority, levy principles and levy structure we use when developing our levy recommendation for funding each year, under the levy provisions of the Gas Act 1992.
The statement assumes all the topics covered within it have been settled and are agreed to.
The statement is available below under Related documents.
Guideline for industry participants regarding payment of the levy and market fees
This guideline provides industry participants with guidance on when they must pay the levy and market fees and how the levy on market fees is determined.
The guideline is available below under Related documents.
Previous levies
Related documents
Previous levies
Each year when the new Gas (Levy of Industry Participants) Regulations come into force on 1 July the previous year's regulations are revoked. On this page you can access all the previous levies, and related documents.