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Overview
The CCM Regulations manage critical gas outages and other security of supply contingencies, without compromising long-term security of supply.
The Gas Governance (Critical Contingency Management) Regulations 2008 requires the industry to have sound arrangements for the management of critical gas outages and other security of supply contingencies, without compromising long-term security of supply.
This provision is met through the 21 January 2010 (CCM Regulations), which set out how industry participants plan for, and respond to, a serious incident affecting gas supply via the gas transmission pipelines.
The CCM Regulations were reviewed following an extended supply disruption on the Maui Pipeline in 2011, and on 1 March 2014, amendments to strengthen and clarify aspects of the regulatory arrangements took effect.
2024 Statement of Proposal to amend the regulations
In 2024, we consulted on amendments to the regulations. See Statement of Proposal 2024 for more information.
2025 Consultation on updating the Guidelines for Determining Regional Critical Contingencies
In April 2025, we consulted on proposed updates to the guidelines for regional critical contingencies. See Guidelines for Determining Regional Critical Contingencies for more information.
Current arrangements
The Current Arrangements section provides information on:
- Current regulations
- Regional/Non-regional Guidelines
- Determinations
- Market fees
- Contingency designation applications
- Information for consumers about critical contingency events.
Critical Contingency Operator
Under the Gas Governance (Critical Contingency Management Regulations 2008 (CCM Regulations) we appoint a Critical Contingency Operator (CCO) responsible for declaring and managing critical contingencies under the CCM Regulations. The current CCO is Plant and Platform, based in New Plymouth. Visit the CCO website to learn more.
Critical Contingency events
The most recent Critical Contingency Event occurred on 25 September 2024. It was caused by a breach of the pressure threshold after a pipeline integrity gauge (PIG), used for pigging the transmission pipeline in the area, deviated from its intended course and became lodged in the inlet piping at the Mount Maunganui gas gate.
Background
The Background section has historical information on the Regulations review (2012-2013), and its original development (2006-2008).
Current Arrangements
Current regulations
On 21 January 2010, the CCM Regulations came into force. They were reviewed following an extended supply disruption on the Maui Pipeline in 2011.
Gas Governance (Critical Contingency Management) Regulations 2008
On 1 March 2014, amendments strengthening and clarifying aspects of the regulatory arrangements took effect.
Gas Governance (Critical Contingency Management) Regulations 2008 - March 2014 (PDF 1.8MB)
For further details of the 2014 amendments, view Background/ Regulations Review.
Statement of Proposal 2024
In 2024, we consulted on a statement of proposal to amend the regulations and make them more fit for purpose.
See Statement of Proposal 2024 for more details, submissions and the Recommendations to the Minister.
Details of the amendments and the associated review can be viewed in Background/ Regulations Review.
Key Areas
The Gas Governance (Critical Contingency Management) Regulations 2008 (the Regulations) were amended in 2013 following a recommendation to the Minister of Energy and Resources from Gas Industry Co. One of the amendments was to change the arrangements relating to Regional Critical Contingencies.
In the design of the original regulations it was considered that it would be obvious to industry participants whether a critical contingency was regional or not. As a result, the CCM Regulations did not specify who would determine that status or when. Subsequent feedback showed that Transmission System Owners (TSOs) wanted the status to be clarified as soon as possible during a critical contingency and that view was shared by a number of shippers. As a result, the 2013 amendments included the following requirements:
- the industry body (Gas Industry Co) must prepare and publish guidelines to assist the Critical Contingency Operator (CCO) to determine whether a critical contingency is a regional critical contingency;
- as soon as possible after determining a critical contingency, the CCO must determine whether it is a regional critical contingency and publish a notice of that determination; and
- during a critical contingency, the CCO must also consider whether any event has occurred that would cause it to revise the CCO's determination and, if so, publish a notice to that effect.
Related Information
Previous ConsultationRelated documents
The Contingency Management Regulations provide for Gas Industry Co to determine and publish certain matters regarding the operation of the regulations. Notice of these determinations are available in Related Documents below.
Frequency of Consumer Notifications of the Contingency Management Regulations
Retailers are required to notify their non-domestic consumers of the existence of the Contingency Management Regulations (and their obligations under the regulations) at intervals specified by Gas Industry Co, which must be between 1-3 years (r44(2)(ii)).
Following consultation, Gas Industry Co has decided that retailers should notify their non-domestic consumers of the regulations (specifically the matters in r44(1)) on a two-yearly basis.
Gas Industry Co also encourages retailers to notify ‘newly gained’ customers of the matters in r44(1) of the CCM regulations at the time of acquisition.
The summarised Consultation Paper, submissions received, and Analysis of Submissions are all contained within the Final Decision Paper which can be viewed below in Related Documents.
Matariki
Gas Industry Co has determined that the new public holiday acknowledging Matariki is a non-business day under gas governance rules and regulations.
The Notice of Determination of Non-Business Day by the Industry Body (Gas Industry Co) under Gas Governance Rules and Regulations can be read below.
It provides for this additional non-business day until the rules and regulations are amended to include an explicit reference to Matariki alongside New Zealand’s other statutory holidays.
Queen Elizabeth II Memorial Day
Following the passing of the Queen Elizabeth II Memorial Day Bill on 20 September 2022, Gas Industry Co determines Queen Elizabeth II Memorial Day, Monday 26 September 2022, to be a non-business day for the purpose of the Arrangements.
The Notice of Determination of Non-Business Day by the Industry Body (Gas Industry Co) under Gas Governance Rules and Regulations can be read below.
Related documents
The critical contingency market fees are monthly fees that cover the costs of the Critical Contingency Management (CCM) arrangements.
These costs are:
- payable to the Critical Contingency Operator (CCO)
- payable to any person we appoint to carry out any obligations under the CCM Regulations
- associated with critical contingency management and its obligations under the CCM Regulations.
Every person who purchases gas directly from a gas producer during a month is liable to pay the critical contingency market fees for that month.
We estimate the costs before each financial year, collects market fees in monthly installments throughout the year, and then perform an end-of-year wash up once the actual costs are known.
Ongoing costs for FY2026 (1 July 2025 to 30 June 2026)
| Cost category | Estimated Costs |
|
CCO: base fee |
$555,000 |
|
CCO: system development & external advice |
$50,000 |
|
Gas Industry Co staff costs |
$199,300 |
| Total ongoing cost |
$804,300 |
Ongoing costs for FY2025 (1 July 2024 to 30 June 2025)
| Cost category | Estimated costs |
| Service provider – Base fee | $491,000 |
| External advice | $50,000 |
| Total ongoing costs | $541,000 |
Ongoing costs for FY2024 (1 July 2023 to 30 June 2024)
| Cost category | Estimated costs |
| Service provider – Base fee | $491,000 |
| External advice | $50,000 |
| Total ongoing costs | $541,000 |
Related documents
Under the CCM Regulations, gas consumers who satisfy certain criteria may qualify for a contingency designation.
This designation gives the consumer a degree of priority access to gas in a critical contingency, subject to availability and the directions of the Critical Contingency Operator (CCO).
Designation categories
The four designation categories are critical care, essential services, critical processing and electricity supply.
1. Critical care, for consumer sites that provide:
- hospital care (within the meaning of the Health and Disability Services (Safety) Act 2001)
- residential care, or support, of people with disabilities or people who are frail (whether because of their age or for some other reason) (please see guidance note below)
- primary health care
- dispensing medicines (within the meaning of the Medicines Act 1981)
- operating a prison (within the meaning of the Corrections Act 2004)
- essential support services for any of the above, for example, laundry services, cleaning or catering.
2. Essential services, for consumer sites that provide:
- mortuary services
- cremation of human remains
- treatment of biohazards to make them safe for disposal
- processing and supply of municipal drinking water
- treatment and processing of municipal sewage
- police, fire, and other emergency services.
3. Critical processing, for an installation where the following process is performed:
- A commercial or industrial process that fits the following criteria:
- the process is underway and
- the process can be shut down in less than 18 hours and
- an immediate shutdown would require
- disposal of dangerous or toxic chemicals or
- extensive operations before the plant could resume operation
- A process that requires gas for a defined period to:
- avoid serious damage to plant or
- mitigate serious environmental damage or
- prevent inhumane or cruel treatment of animals already at an abattoir.
4. Electricity supply:
To allow an electricity generating unit to start up and switch to an alternative fuel or to provide ancillary support to the electricity system.
How to apply
Gas consumers who meet the relevant criteria can apply to us for designations using the following specific forms:
1. Critical Care Designation Application
2. Essential Services Designation Application
3. Critical Processing Designation Application
4. Designation Reapplication - to re-apply for a designation of any type previously granted.
5. Electricity Supply - If you wish to apply for an Electricity Supply designation, email us at [email protected]
Please email [email protected] if you have any questions or need assistance.
Guidance for completing applications
We have produced two guidance notes available below for those wishing to apply for Contingency Designations.
- Completely independent and independent - The guidance note on the meaning of 'completely independent' and 'independent' when appointing a technical expert, relates to those applying for a Critical Processing Designation, for which a technical expert must be appointed to help assess the application.
Other applications may have a technical expert appointed if we think it is necessary.
- Residential care - The guidance note on the meaning of 'residential care' relates to Critical Care Designation applications.
Active designations
Under Regulation 46O of the Gas Governance (Critical Contingency Management) Regulations, we are obliged to publish a list of the ICPs that have designations.
The list must include:
- the name and ICP identifier of the designated consumer installation
- the type of designation
- the date on which the designation was approved
- the date on which the designation will expire unless a further approval is given.
Designations expire two years after being approved and, if not renewed, will be removed from this list and lose the measure of priority access to gas in a critical contingency.
The list below includes all consumers that have had designations approved by us and that are still effective.
Related documents
Click here for the Compliance Registration.
Please email [email protected] if you have any questions or need assistance.
Critical Contingency FAQs
What is a critical contingency?
A critical contingency generally occurs when gas supply is disrupted to all or part of the natural gas transmission system. Such a disruption can be caused by an outage in a gas production station that prevents gas from being injected into the transmission system or a fault (for example a leak or breakage) in a transmission pipeline that prevents gas from being delivered into or out of the pipeline.
The pressure in the transmission system needs to be kept within a specific range, and a mismatch between gas demand and gas supply can cause gas pressures to drop. If the gas pressure drops to a level that jeopardises the safe delivery of gas, this in turn triggers a critical contingency to be declared under the Gas Governance (Critical Contingency Management) Regulations 2008 (the Regulations). The Regulations provide for specific gas pressure threshold limits to be set by the transmission system owner.
What happens during a critical contingency?
The Critical Contingency Operator (CCO) has the responsibility under the Regulations for declaring and managing critical contingency situations. Once a critical contingency has been declared by the CCO, the objective is to stabilise pressures and gas supply on the affected parts of the transmission system. Stabilising pressure is important, because if gas pressure drops too low – if the pipeline is effectively sucked dry of gas – then restoring full gas supply to the affected downstream networks can take a very long time (possibly months).
The main tool that the CCO has in managing pipeline pressure is the ability to require industrial and commercial gas users to stop using gas on the affected parts of the transmission pipeline. The CCO’s directions are relayed to retailers, who in turn instruct their customers to cease their gas usage as soon as possible.
The CCO manages pipeline pressure so that, when the fault causing the critical contingency is repaired, the supply of gas can be restored as quickly as possible.
Read more about the Critical Contingency Operator
What are the Gas Governance (Critical Contingency Management) Regulations 2008?
The Gas Governance (Critical Contingency Management) Regulations are intended to ensure that any gas outages are managed effectively. Some of the ways the regulations do this is by providing for:
- the appointment of a critical contingency operator
- the development of critical contingency management plans
- processes for managing a critical contingency.
Compliance process frequently asked questions
Here are answers to some common questions about critical contingency events and gas user obligations.
What are the Gas Governance (Compliance) Regulations 2008?
The Gas Governance (Compliance) Regulations 2008 provide for the monitoring and enforcement of gas governance rules including the Gas Governance (Critical Contingency Management) Regulations 2008.
Read more about the Gas Governance (Compliance) Regulations
What is a breach of the regulations?
A breach may arise where there appears to have been non-compliance with any provision of the Gas Governance (Critical Contingency Management) Regulations 2008. These regulations govern the management of serious pressure events or outages on the gas transmission system. An example of a potential breach is failure to stop using gas when directed.
Read more about the gas regulations
Am I allowed to allege a breach?
Any person who believes, on reasonable grounds that a participant has breached the rules; and that person is affected by that alleged breach, may notify that alleged breach.
You can allege a breach by completing the notice of breach template:
and sending it to [email protected] .
In the event of a large and sustained outage, how can I register to receive breach notices?
Complete the form on the following page:
I registered to receive breach notices – what happens when I receive one?
If you register to receive breach notices, the Market Administrator will ensure you receive any notifications of the breaches relating to any other future gas outages. (See below for more information about the Market Administrator).
The information the Market Administrator sends you will enable you to consider whether the alleged breach has impacted your organisation, and therefore whether you consider that you have been affected by the alleged breach. If you consider that your organisation has been affected, then you may wish to join the breach by sending a return email to the Market Administrator.
Who is entitled to become a party to a breach?
All participants who consider that they are affected by the alleged breach may join as a party to the breach notice. Participants, in this context, include consumers (other than residential consumers).
What happens if I join as a party to an alleged breach?
By joining as a party to an alleged breach:
- you will be kept informed at key stages of the breach process (for example when the materiality of the breach is determined you will be sent an email)
- you may be asked to provide information to allow the breach to be assessed and
- you may participate in any settlement proceedings or hearings.
Joining as a party to a breach notice is not an application for compensation. It is possible that a participant who is found to have breached the regulations may be required to pay a fine or some form of compensation, but joining a breach is no guarantee of entitlement to compensation.
What are the roles of the Market Administrator, Investigator, and Rulings Panel?
The Market Administrator, Investigator, and Rulings Panel are appointed under the Gas Governance (Compliance) Regulations 2008 to undertake a range of functions in relation to alleged breaches.
- The Market Administrator
- receives breach allegations
- refers material allegations to the Investigator and
- attempts to settle non-material allegations.
- The Market Administrator function is currently performed by Gas Industry Co.
- The Investigator
- is independent from Gas Industry Co
- has a range of powers to investigate and report on breach allegations and
- can effect settlements, which must be referred to the Rulings Panel for approval or rejection.
- The Rulings Panel is an independent body appointed by the Minister for Energy.
- The current Rulings Panel is a retired High Court Judge.
- In a quasi-judicial process, the Rulings Panel has jurisdiction to approve or reject settlements and to determine breach allegations and impose sanctions.
How long does the compliance process take?
The Market Administrator must make determinations of materiality expeditiously. If a breach is found not material by the Market Administrator, then the compliance process is complete.
If a breach is found material and referred to the Investigator, the Investigator has 30 business days (or longer by agreement) to reach a settlement.
If the Investigator cannot reach a settlement, then the breach is referred to the Rulings Panel. The Rulings Panel must use reasonable endeavours to make its final decision on a breach within 40 business days of the date by which it has received all written and oral submissions on that matter.
Why are residential consumers not invited to receive notification of breaches?
The compliance process allows gas users who believe they are affected by an alleged breach to join the process. Residential gas users are not covered by the Regulations and were not subject to curtailment notices.
What was the Maui gas outage?
The large Maui gas transmission pipeline, which is the main pipeline transporting gas from the fields in Taranaki to the upper North Island, was shut down on 25 October 2011 following a reported gas escape in the White Cliffs area of North Taranaki. A pipe seam weld was found to have a 120mm long split that required a significant repair, including the isolation and depressurisation of a 24-kilometre section of the pipeline and the removal and replacement of the damaged section of pipe. Normal pipeline operations resumed on 30 October. The pipeline operator then conducted a thorough investigation into the circumstances of the pipeline failure.
Related documents
Critical Contingency Operator
The Critical Contingency Operator (CCO) is responsible for declaring and managing critical contingencies under the CCM Regulations. The current CCO is New Plymouth-based Plant and Platform Limited.
Critical Contingency Operator's role
The CCO:
- determines and declares the onset of a critical contingency
- calls for load curtailment as required to balance the system
- continuously monitors the supply and/or demand balance and adjusts load curtailment directions as necessary
- determines when it is safe to terminate a critical contingency
- maintains a website that it updates continually during a critical contingency.
For more information, visit the CCO website
Reports for critical contingencies
After a critical contingency has ended, the CCO is required to publish an Incident Report and a Performance Report.
Incident report
This report (as required under regulation 64) outlines:
- the cause and duration of the event
- actions taken by the CCO and the transmission system owner
- the level of general compliance by retailers and consumers with directions issued during the event
- other matters the CCO considers appropriate.
The Incident Report must be issued as soon as reasonably practicable, but no later than five business days after the critical contingency ends.
Performance report
The Performance Report (as required under regulation 65):
- assesses the effectiveness of the critical contingency arrangements during the event
- identifies any areas where those arrangements could be improved.
This report must be issued no later than 30 business days after the end of the critical contingency, or as otherwise agreed between the CCO and Gas Industry Co as the industry body.
In the case of a non-regional critical contingency, regulations 67 to 81 provide for a process for setting a critical contingency price that is used to settle contingency imbalances arising from the event.
Critical Contingency Management Plan
The Critical Contingency Management Plan (CCMP):
- defines pressure thresholds for the transmission system
- outlines how curtailment will be implemented
- describes the communications between the transmission system owner and the critical contingency operator
- includes contact details for parties connected to or who use the transmission system.
All CCO reports and planning documents, including the Transmission System Map showing the location of the transmission pipelines and gas gates, can be found CCO Publications.
Notices of critical contingency events
Notices published by the Critical Contingency Operator (CCO) during a critical contingency event are available on the CCO website under CCO events .
This includes notices:
- declaring or terminating a critical contingency
- directing gas consumers to cease using gas (curtailment directions)
- advising of the status and expected duration of the critical contingency (where possible) in cases of extended outages.
CCO audit and provider agreement
The CCM Regulations (Reg 8) requires that we publish the CCO service provider agreement. A copy of the CCO service provider agreement is available below.
In June 2020, the then CCO was audited against the CCO Service Provider Agreement and the CCM Regulations. No areas of non-conformance were identified. A summary of this audit is found below.
Previous Critical Contingency Operators
There have been two previous CCOs:
- November 2008 to November 2013: Vector Gas Limited.
- March 2014 to March 2022: New Plymouth-based Core Group.
Related documents
Critical Contingency Events
The Critical Contingency Operator (CCO) publishes notices during a critical contingency event on the the website - CCO Current events.
Following a critical contingency event, the CCO is required to publish an Incident Report and a Performance Report. These reports are available CCO Publications.
Read more about CCO Reports in the Critical Contingency Operator section.
Key areas
A Critical Contingency was declared at 22:56 on Wednesday 25 September 2024.
What caused the event
The gas supply to the Mount Maunganui gas gate was affected by a blockage in the transmission pipeline caused by a Pipeline Integrity Gauge (PIG) being used for pigging the transmission pipeline in the area. The PIG had deviated from its intended course and become lodged in the inlet piping at the Mount Maunganui gas gate which caused a breach of the pressure threshold.
Termination of the event
The Critical Contingency was terminated at 02:30 on Thursday 26 September 2024. The duration of the Critical Contingency was 3 hours and 34 minutes. No demand curtailment directions under the Regulations were required to be given by the CCO.
More information
More information on the event can be found on the CCO website:
Historical events (CCO website)
Performance Report
The CCO is required to produce a performance report that assesses the effectiveness of the critical contingency arrangements and, where applicable, identifies any improvements. On 25 November 2024, the CCO published the final report, which can be found here.
Related documents
A Critical Contingency was declared by the Critical Contingency Operator (CCO) at 10:50 on Tuesday 23 May 2017.
What caused the event
The cause of the event was low linepack due to downstream delivery points taking significantly more gas than was being injected into the pipeline, which was exacerbated during a planned outage of the Pohokura Production Station. During the period of this outage, the imbalance between supply and demand caused pipeline linepack and pressures to fall to the point where the critical contingency threshold of 3 hours to 37.5 barg at the Kapuni Gas Treatment Plant was breached.
Termination of event
The Critical Contingency was terminated at 18:15 the same day, after Pohokura returned to expected flows and the CCO considered that the supply of gas into the system was sufficient to meet expected demand.
More information
More information on the event can be found on the CCO website:
Historical events (CCO website)
Performance Report
The CCO is required to produce a performance report that assesses the effectiveness of the critical contingency arrangements and, where applicable, identifies any improvements. On 30 June, a draft report was released for public comment, as well as a feedback form for submissions. The draft report can be found below. The final performance report can be found on the CCO website here
Historical events (CCO website)
Resolving contingency imbalances
Under regulations 67 to 72, we are required to engage an independent industry expert to determine a critical contingency price to be applied to contingency imbalances sustained by interconnected parties and shippers during a critical contingency event.
We engaged Tim Denne of Covec for this work, and his draft report, workshop slides and final critical contingency price report are available below.
Under regulation 77, we are also required to publish the contingency imbalances incurred during an event, and a table setting out this information is available below.
Related documents
At 6:30pm on 24 May 2016 the Critical Contingency Operator (CCO) declared a Critical Contingency. The underlying causes of the Critical Contingency were an unplanned trip of PPS at 4:20pm combined with the large gas demand on the day and depleting linepack. At 6:05pm, once the Critical Contingency threshold of 3 hours to 37.5 barg at the Kapuni Gas Treatment Plant was breached, the conditions for determining a Critical Contingency had been met. The CCO was required to determine and declare a Critical Contingency.
The Incident Report and Performance Report can be found on the CCO website:
Historical events (CCO website)
Critical Contingency Price
Under regulations 67 to 72, we are required to engage an industry expert to determine a Critical Contingency price that will be applied to contingency imbalances sustained by interconnected parties and shippers during a Critical Contingency event. We engaged Tim Denne of Covec as the independent expert for this work. His final Critical Contingency price report is available below.
Performance Report
Pursuant to regulation 65 of the Gas Governance (Critical Contingency Management) Regulations 2008, the CCO issued a draft Performance Report which can be found below along with the submission received.
Related documents
What happened
Maui linepack on 14 and 15 April 2015 fell to levels that caused the Critical Contingency Operator (CCO) to issue a ‘Notification of Potential Critical Contingency’.
Report into event
We were concerned the situation was triggered by market operations behaviour rather than a physical supply problem. We published a report in response to broad stakeholder interest in the event and limited public visibility of data surrounding it.
The report, Potential Critical Contingency on 15 April 2015 – Analysis of Data’, can be found under Related documents below.
What the report found
In summary, the report concluded the linepack fall was caused mainly by a steep decline in Running Operational Imbalance (ROI) at transmission pipeline welded points, and that this was attributable principally to shippers on Vector’s North and South-Kapuni-Frankley Road (SKF) pipelines drawing more gas from the Maui pipeline than they had contracted for.
The event highlighted the ineffectiveness of the current Imbalance Limit Overrun Notice (ILON) process. The report noted that the introduction of daily cash-outs under the Maui pipeline market-based balancing regime that took effect from 1 October 2015 would prevent such imbalance accumulations at welded points and incentivise all pipeline users to improve primary balancing.
To help our analysis, we formally requested gas transaction information from relevant participants under the Information Gathering Protocol. This was not wholly effective, and the investigation was hindered because two retailers declined to provide the data requested.
Consequently, we decided to review the information gathering arrangements, in particular the role of the Protocol.
Related documents
A Critical Contingency incident on the Gas Transmission System caused by an unplanned outage at the Pohokura Poduction station was declared at 12.48pm on Saturday 3 March 2012, and terminated at 11.39pm on the same day. The event resulted in a requirement for reduced consumption by large gas users. The Critical Contingency Operator (CCO) issued an Incident Report and Performance Report. Documents and other information relating to this event are available on the CCO website here.
Under regulations 67 to 72, Gas Industry Co is required to engage an industry expert to determine a Critical Contingency price that will be applied to contingency imbalances sustained by interconnected parties and shippers during the event. Tim Denne of Covec was engaged for this work and his final price report is available below.
Related documents
A Critical Contingency incident on the Gas Transmission System caused by a gas escape from the Maui pipeline was declared at 1.25am on 25 October 2011, and terminated at midday on 30 October 2011. Documents and communications relating to this event are available below.
What caused the event?
The large Maui gas transmission pipeline, which is the main pipeline transporting gas from the fields in Taranaki to the upper North Island, was shut down on 25 October 2011 following a reported gas escape in the White Cliffs area of North Taranaki.
A pipe seam weld was found to have a 120mm-long split that required a significant repair, including the isolation and depressurisation of a 24-kilometre section of the pipeline and the removal and replacement of the damaged section of pipe.
Normal pipeline operations resumed on 30 October. The pipeline operator then conducted a thorough investigation into the circumstances of the pipeline failure.
Review of Gas Critical Contingency Management
Gas Industry Co engaged Concept Consulting Group to review the effectiveness of the Critical Contingency Management processes and governance arrangements during the Maui outage.
Post Maui Pipeline Outage Review - Update 7 May 2012
The Outage Review captured lessons learned from the five-day Maui event.
See Related documents below.
Related documents
A Critical Contingency was declared at 19:36 on 13 July 2010 and was terminated at 22:34 on 13 July 2010. Under the Gas Governance (Critical Contingency Management) Regulations 2008, a number of reports have been published in respect of this event:
- Critical Contingency Incident Report, prepared by the Critical Contingency Operator under regulation 64. This report outlines the events that occurred that day and the actions taken by the Critical Contingency Operator and the Transmission System Owner.
- Critical Contingency Operator Performance Report, prepared under regulation 65. The purpose of this report is to assess the effectiveness of the Critical Contingency arrangements during the event and identify areas where those arrangements could be improved.
- Under regulations 67 to 72, Gas Industry Co is required to engage an industry expert to determine a Critical Contingency price that will be applied to contingency imbalances sustained by interconnected parties and shippers on a Critical Contingency day. Dr John Small of Covec has been engaged for this work.
Related documents
Developing - Determining Regional Critical Contingencies
Determining whether a critical contingency event is regional determines the way the event is managed.
Updating the Guidelines for Determining Regional Critical Contingencies
Gas Industry Co has released a consultation paper to invite feedback on draft updates to the Guidelines for Determining Regional Critical Contingencies.
Background
The Gas Governance (Critical Contingency Management) Regulations 2008, requires Gas Industry Co to prepare and publish guidelines to assist the Critical Contingency Operator (CCO) in determining whether a critical contingency event is regional. This distinction is relevant, because the imbalance arrangements do not apply in case of a regional critical contingency and should not be operative in circumstances where they are not needed.
The Guidelines for Determining Regional Critical Contingencies were last updated in February 2014.
Proposed updates
The proposed changes have been designed to improve readability, update the network configuration schematics, and add a sixth critical contingency scenario.
The consultation paper can be found below. Submissions should be emailed by 5.00pm on Wednesday 30 April 2025, to [email protected]
Consultation
Consultation has now closed.
Please note: All submissions will be published on Gas Industry Co's website and submitters should discuss any intended provision of confidential information prior to submitting the information.
Related documents
Proposal for amending CCM Regulations 2020
The purpose of the Gas Governance (Critical Contingency Management) Regulations 2008 (CCM Regulations) is to achieve the effective management of critical gas outages and other security of supply contingencies without compromising long-term security of supply.
The CCM Regulations underwent extensive review and were amended after the October 2011 Maui pipeline outage. Since then, there have been additional critical contingencies, test exercises and market changes. This more recent experience has identified further areas where the CCM Regulations could be amended to improve their operation.
Gas Industry Company released its consultation paper Statement of Proposal for amending the Critical Contingency Management Regulations in May 2020. In July 2020, at the end of our consultation period, we received eleven submissions. There was broad agreement on many of the proposals, however, the submissions did raise areas that we considered warranted further analysis.
We have since carried out this analysis, engaged external consultants where required, and have now released a Summary of Submissions and Next Steps for Amending the Critical Contingency Management Regulations. Although we are not requesting formal submissions on this paper, we encourage anyone with a view to get in touch.
Gas Industry Company is now working towards publishing a final Statement of Proposal which will provide a further opportunity for stakeholders to make submissions. Once we have considered these final submissions, we intend to make a Recommendation to the Minister to change the CCM Regulations.
Related documents
Submissions
Firstgas CCMP proposed amendments 2024
On 13 December 2023, Firstgas notified us of proposed amendments to its critical contingency management plan (CCMP). The proposed amendment document can be read below.
The proposed amendment to Firstgas's CCMP will remove the Broadlands and Taupo points of measurement from the pressure thresholds for declaration of a critical contingency event.
We consulted on the proposed amendments to change the Firstgas CCMP with submissions closing on 8 February 2024. The submissions we received are available to read below.
Related documents
Submissions
Statement of Proposal 2024
The process to manage critical contingency event on the gas system needs changes to the CCM Regulations so that they are fit for purpose.
Initial Statement of Proposal
In May 2020 we released our initial consultation paper Statement of Proposal for amending the Critical Contingency Management Regulations. We received 11 submissions. There was broad agreement on many of the proposals, however, the submissions did raise areas that we considered warranted further analysis.
Read more about the 2020 Statement of Proposal
Final Statement of Proposal
In March 2024, we put out our final Statement of Proposal to amend the Gas Governance (Critical Contingency Management) Regulations 2008.
The Statement of Proposal presented a coordinated set of changes to the regulations. It responded to the need to adapt the CCM regulations to operational changes in the last decade and implements learning from previous events and CCM exercises to increase efficiency.
The proposal is structured into three parts:
- Changes we intend to put forward to the Minister
- Firstgas request to change Schedule 1 of the CCM Regulations to reflect operational changes of the transmission network
- Ex-post consultation on the urgent regulation change to remove the Taupo/Broadlands gas gates from Schedule 1 to enable the injection of biogas
Submissions closed on 26 April. We received seven submissions which are available below.
2023 Recommendation to the Minister
On 7 December 2023, we recommended the Minister amend Schedule 1 of the Gas Governance (Critical Contingency Management) Regulations 2008.
The purpose of the proposed amendment was to remove the Broadlands and Taupo gas gates from Schedule 1 of the Regulations. This would ensure that the Regulations were consistent with Firstgas’s operation of the gas transmission system between Reporoa and Taupo from March 2024.
Firstgas intends to reduce the operating pressure on this section of the transmission system to enable the blending of biomethane. The proposed amendment will avoid a critical contingency being declared in relation to normal operation of the gas transmission system.
The proposed amendment is being made in reliance on the urgent recommendation process in the Gas Act. Consultation on the proposed amendment occurred as part of our broader package of proposed changes to the Regulations consulted on in early 2024.
2024 Recommendation to the Minister
In June 2024 we made a recommendation to the Minister to change the Regulations. You can view the Recommendation below.
Related documents
Submissions
Background
This section contains historical information on:
- The Regulations Review
- The Original Development
Key Areas
Related Information
Revision of Essential Services and Minimal Load GuidelinesReview of Gas Critical Contingency Management: Post Maui Pipeline Outage
Statement of Proposal - amendments to the Gas Governance (Critical Contingency Management) Regulations 2008
Recommendation to the Minister of Energy and Resources to amend the Critical Contingency Management Regulations
Related Information
Presentation - Gas Outage and Contingency Management Arrangements Industry ForumRecommendation to the Minister of Energy on Critical Contingency Amendments to Gas Compliance Regulations
Recommendation to the Minister of Energy on Arrangements for the Effective Management of Critical Contingencies
Interdependency Study (May 2008)
Short-form Consultation Paper - Gas Critical Contingency Management Arrangements
Report - Gas Outage and Contingency Management Arrangements - Supplementary Submissions Analysis
Supplementary Consultation Paper - Gas Outage and Contingency Management Arrangements
Report - Gas Outage and Contingency Management Arrangements - Submissions Analysis and Next Steps
Presentation - Gas Outage and Contingency Management Arrangements Stakeholder Workshop
Presentation - Emergency Management Arrangements Workshop
Statement of Proposal - Gas Outage and Contingency Management Arrangements
Discussion Paper - Review of Gas Emergency Arrangements
Report - Emergency Management and Gas Outages: Economic Issues
On 21 July 2021, Gas Industry Co recommended that the Minister of Energy and Resources make new gas governance regulations to replace regulations 82A and 82B of the Gas Governance (Critical Contingency Management) Regulations 2008 (CCM Regulations) that will be revoked by the Gas (Information Disclosure and Penalties) Amendment Act.
The new regulations would enable the High Court to impose civil pecuniary penalties of up to $200,000 on consumers who are not industry participants (other than domestic consumers) for specific breaches of the CCM Regulations.
The recommendation follows Gas Industry Co’s issue of a Statement of Proposal and consultation with industry participants on a broader package of reforms to the CCM Regulations. This proposal is being progressed ahead of other proposed changes to align with the amendments to the Gas Act and avoid any possible regulatory gap.
We anticipate a further recommendation on proposed amendments to the CCM Regulations relating to other aspects of our consultation following the completion of our consultation and assessment process on those proposed amendments.
The recommendation to the Minister can be found below. Gas Industry Company’s consultation on its Statement of Proposal for amending the CCM Regulations can be found here.