Explore this Work Programme:
Overview
This workstream considers whether current market arrangements relating to information disclosure are sufficient or whether more arrangements are needed.
Following Gas Industry Co discussions with industry and wider energy sector participants to understand their perspectives on information disclosure in the gas sector, measures were put in place to improve the information available to all stakeholders.
On 25 July 2018, the Minister of Energy and Resources requested an investigation into whether the existing arrangements for industry participants to disclose information that could have an impact on the downstream gas market were adequate.
The details of this investigation can be found in the Background section.
Related documents
Problem Assessment
Gas Industry Co's consultation on its paper Information Disclosure: Problem Assessment closed on Monday 9 December 2019. Submissions received are available below.
Based on our March 2019 Options Paper and related submissions, the Information Disclosure: Problem Assessment paper (found below) identifies several specific information areas or ‘information elements’ where we consider there could be information transparency or asymmetry issues. The paper assesses these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008 (GPS).
Key Areas
On 15 May 2020, Gas Industry Company released its Analysis of Submissions on its October 2019 consultation paper: Information Disclosure: Problem Assessment. The Analysis of Submissions is found below in Related Documents.
The Information Disclosure: Problem Assessment paper released in October 2019 for consultation identified several specific information areas or ‘information elements’ where Gas Industry Company considers there could be information transparency or asymmetry issues. The paper assesses these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008. In December 2019, at the close of our consultation period, we received nineteen submissions on the paper.
The submissions received were generally in agreement with Gas Industry Company’s assessment of the discussed ‘information elements.’ However, there were three elements where parties had differing views. These were contract price and volume information, forecasts of major users’ gas consumption and major gas user facility outages. Given the range of views that we received in submissions on these three matters we gave submitters a further opportunity to comment on these elements through a cross-submissions process. Eleven cross submissions were received at the close of the consultation period.
The Problem Assessment paper from October 2019 and the submissions on the paper can be found here.
Disclosure of Major Gas User Facility Outage Information - Independent Review
To assist parties with the above mentioned cross-submissions, specifically submissions relating to the disclosure of major gas user facility outage information, Gas Industry Company has retained an industry expert (John Bay, Contract Strategies Ltd) to provide his independent views of the issues associated with the disclosure of Methanex’s planned and unplanned plant outages. Methanex, being the largest major gas user in the industry, has been at the centre of many of the submitted views associated with major gas user outage disclosure. The paper that the expert has developed is available below.
Related documents
Submissions
Related documents
Submissions
Options Paper
Gas Industry Co is pleased to release its Analysis of Submissions on its March 2019 consultation paper: Options for Information Disclosure in the Wholesale Gas Sector (Options Paper).
Twenty submissions were received on the Options Paper from a wide range of parties spanning the New Zealand energy sector. Given the range of perspectives in the submissions, we decided to have a cross-submissions process for parties to provide further information on issues they consider are important. Thirteen cross-submissions were received.
The next step in this work programme will involve the development of a specific problem statement along with particular information disclosure elements. We plan to release a paper on this topic for consultation in October.
The Analysis of Submissions, and other associated documents can be found below.
Background
Last August, we established the information disclosure workstream as an initial step in the process to address potential information issues relating to information availability in the wholesale gas sector. As part of that workstream we will consider whether current market arrangements related to information disclosure in the sector are sufficient or whether further arrangements are required.
We released the Options Paper for consultation in March 2019 and received twenty submissions. The Options Paper sets out a proposed problem statement and discusses the importance of information for the operation of a well-functioning market. The options are described at a concept level and are evaluated qualitatively. Submissions will be used to assist in determining whether there is potential information issue, and if there is an issue, the extent of the issue and the appropriate option for detailed design and evaluation.
Key Areas
Gas Industry Co received twenty submissions on the Options Paper for Information Disclosure (Options Paper) from a wide range of parties spanning the New Zealand energy sector. That consultation closed on 17 April 2019. The twenty submissions can be viewed here.
There are a number of submissions containing detailed responses to various issues raised in the Options Paper, with some having different perspectives on several issues. For instance, there is a range of perspectives on the issue of which parties should be included in an information disclosure regime. In particular, should major users be included in outage disclosure or forecasts of future consumption?
Given the range of perspectives in the submissions, Gas Industry Co decided to have a cross-submissions process for parties to provide further information on issues they consider are important. Submitters were encouraged to provide examples and background information supporting their positions.
The consultation period for receiving cross-submissions ended on Thursday 27 June 2019.
Submissions
Related documents
Submissions
Current arrangements
The current Gas Facilities Outage Information Disclosure Rules 2022 came into effect on 1 April 2023.
The purpose of these rules is to provide for effective and timely disclosure of information regarding an unplanned outage or planned outage at a gas production facility or a gas storage facility for all gas and related market participants.
These rules provide for the disclosure of information:
- about an unplanned outage or planned outage at a gas production facility or a gas storage facility
- to the industry body to enable it to monitor compliance with these rules.
Annual reporting
Under the rules, in April each year, gas producers and gas storage owners must provide Gas Industry Company with:
1. the information required under rules 15.2 (gas producers) and 16.2 (gas storage owners) under Part 5 (monitoring) of the rules; and
2. their annual outage information disclosure certificate(s) confirming, that in their reasonable opinion, the information disclosed under the rules for the preceding 12 months (i.e. in the period from 1 April the preceding calendar year) is correct.
The certificate must be in the form specified by Gas Industry Co as the industry body and signed [and dated] by either:
(i) a director of the relevant gas producer or gas storage owner; or
(ii) a senior manager whose functions include ensuring that the gas producer or gas storage owner discloses the information required under the rules.
The Gas Facilities Outage Information Disclosure Rules 2022, and Certification template are below.
Related documents
Developing
In this section, we would post any consultations that we are currently consulting on.
There are no current consultations in this Work Programme.
Background
This page provides an overview of the consultation process we went through to develop and finalise the Gas (Facilities Outage Information Disclosure) Rules.
Key areas
On 17 December 2020, we released our Draft Statement of Proposal: Gas Production and Storage Facility Outage Information paper for consultation. It set out a draft Statement of Proposal for the disclosure of gas production and storage facility outage information and sought parties’ views on the various matters included in the assessment. These views were used to inform the development of the final Statement of Proposal.
Submissions closed on 4 March 2021, and we received 16 submissions. These submissions are available below.
Related documents
Submissions
Our consultation on our paper Information Disclosure: Problem Assessment closed on Monday 9 December 2019. Submissions received are available below.
Based on our March 2019 Options Paper and related submissions, the Information Disclosure: Problem Assessment paper (found below) identifies several specific information areas or ‘information elements’ where we consider there could be information transparency or asymmetry issues.
The paper assesses these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008 (GPS).
Related documents
Submissions
On 15 May 2020, we released our Analysis of Submissions on our October 2019 consultation paper: Information Disclosure: Problem Assessment. The Analysis of Submissions is found below in Related documents.
The Information Disclosure: Problem Assessment paper identified several specific information areas or ‘information elements’ where we considered there could be information transparency or asymmetry issues.
The paper assessed these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008.
In December 2019, at the close of our consultation period, we received 19 submissions on the paper. The submissions were generally in agreement with our assessment of the discussed ‘information elements.’ However, there were 3 elements where parties had differing views. These were:
- contract price and volume information
- forecasts of major users’ gas consumption
- major gas user facility outages.
As a result, we gave submitters a further opportunity to comment on these elements through a cross-submissions process. We received 11 cross submissions at the close of the consultation period.
Read the Problem Assessment paper from October 2019 and the submissions on the paper under the Problem Assessment tab.
Independent review: Disclosure of major gas user facility outage information
To help parties with the above mentioned cross-submissions, specifically submissions relating to the disclosure of major gas user facility outage information, we retained an industry expert (John Bay, Contract Strategies Ltd) to provide his independent views of the issues associated with the disclosure of Methanex’s planned and unplanned plant outages.
Methanex, being the largest major gas user in the industry, has been at the centre of many of the submitted views associated with major gas user outage disclosure. The paper that the expert has developed is available below.
Related documents
Submissions
We released our Analysis of Submissions on our March 2019 consultation paper: Options for Information Disclosure in the Wholesale Gas Sector (Options Paper). See below.
The Options Paper set out a proposed problem statement and discussed the importance of information for the operation of a well-functioning market. The options were described at a concept level and evaluated qualitatively.
We received 20 submissions on our Options Paper. Given the range of perspectives in the submissions, we decided to have a cross-submissions process for parties to provide more information on issues they considered were important. We received 13 cross-submissions. See submissions and cross-submissions below.
Following this consultation, we developed a specific problem statement along with particular information disclosure elements to consult on later in the year.
Related documents
Submissions
We received 20 submissions on the Options Paper for Information Disclosure (Options Paper) from a wide range of parties spanning the New Zealand energy sector. That consultation closed on 17 April 2019. The 20 submissions can be viewed under the Options Paper tab.
There were a number of submissions containing detailed responses to various issues raised in the Options Paper, with some having different perspectives on several issues. For instance, there was a range of perspectives on the issue of which parties should be included in an information disclosure regime. In particular, should major users be included in outage disclosure or forecasts of future consumption?
Given the range of perspectives in the submissions, we decided to have a cross-submissions process for parties to provide more information on issues they considered were important. Submitters were encouraged to provide examples and background information supporting their positions.
The consultation period for receiving cross-submissions ended on Thursday 27 June 2019. View the cross-submissions below.
Submissions
On Friday 18 February 2022, we recommended to the Minister of Energy and Resources that new gas governance rules were made for the disclosure of gas production and storage facility outage information. This recommendation followed the Statement of Proposal: Gas Production and Storage Facility Outage Information that we published in July 2021 and incorporated feedback we received from stakeholders on the proposal.
These rules would provide for the disclosure of planned and unplanned outages of gas production and gas storage facilities over a specified threshold and monitoring of compliance with these disclosure obligations. We also recommended amendments to the Gas Governance (Compliance) Regulations 2008, so that the compliance framework in these regulations applied to the proposed Rules.
We considered that these rules, together with the amendments to the compliance regulations, would achieve the regulatory objective of ensuring that there is effective and timely availability of material gas production and storage outage information for all gas and related market participants.
Related documents
On 18 May 2022, the Minister of Energy and Resources approved our recommendation to introduce new gas governance rules for the disclosure of gas production and gas storage facility outage information.
A copy of our recommendation to the Minister can be found under the Recommendations to Minister tab.
We sought feedback on the drafting of the proposed rules which is available below. Submissions closed on 25 July 2022.
Our recommendation to the Minister was also accompanied by a recommendation for amendments to the Gas Governance (Compliance) Regulations 2008 to provide for enforcement of the Gas (Facilities Outage Information Disclosure) Rules under the existing compliance regime. The amendments to these regulations would be considered by Cabinet. If the amendments were approved, the process would be for the amendments to be drafted by the Parliamentary Counsel Office.
A submissions summary and analysis of Gas (Facilities Outage Information Disclosure) can be read below.
Related documents
In January 2021, we released our Draft Statement of Proposal: Gas Production and Storage Facility Outage Information for consultation. We received 16 submissions.
These views were used to inform the development of the Final Statement of Proposal: Gas Production and Storage Facility Outage Information below. The paper assesses the problems with inadequate production and storage facility outage information and identifies options for addressing these issues.
Submissions closed on 26 August 2021, and we received 9 submissions. These submissions are available below.