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Gas Control Inquiry


On 2 December 2004, the Minister of Energy published the Commerce Commission's Final Gas Control Inquiry Report. The report is in response to a request from the Minister of Energy for the Commission to report on whether or not an Order in Council should be made under section 53 of the Commerce Act 1986 controlling goods and services supplied by persons in markets directly related to either a natural gas transmission system or a natural gas distribution system or both.

Energy Minister Trevor Mallard announced on Wednesday 27 July 2005 that the gas pipelines services provided by Powerco and Vector are to be subject to control under Part 5 of the Commerce Act.

The Minister also announced that the regulatory constraints for all gas pipelines will be strengthened by the implementation of a targeted (thresholds) control regime. This would be modelled on the current electricity lines regime under which explicit thresholds or revenue paths are set by the Commission and control can be imposed if the threshold is breached.

On 29 July 2005 and on behalf of the Minister of Energy, the Ministry of Economic Development released a discussion paper titled Proposal for Levy Funding of Part 5 Control on the Gas Pipeline Services Provided by Powerco and Vector. The paper discusses levy funding of the Commerce Commission's costs associated with Part 5 control over Powerco and Vector pursuant to the provisions of section 74 of the Commerce Act. Submissions closed on Friday 12 August 2005.

Documents

See Also

Contact: gascontrolinquiry@med.govt.nz

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