1. Introduction
1. The Ministry of Commerce has organised a forum to provide gas industry participants and other interested parties with an opportunity to give feedback on the Ministry's proposals for amending the Gas (Information Disclosure) Regulations 1997 ("the Regulations"). This consultation document has been prepared for discussion at the forum. The consultation document was prepared by PricewaterhouseCoopers and Rod Crone Consulting, in conjunction with the Ministry.
1.1 Background
2. The Ministry released a discussion paper on 11 October 1999 entitled Proposals for Amending the Gas (Information Disclosure) Regulations 1997. The discussion paper (paragraphs 7 and 8) noted that the Ministry would consult further on the development of a Gas Information Disclosure Handbook, derivation table of adjustments to disclosed financial statements for the purpose of calculating financial performance measures; mandatory Optimised Deprival Valuation (ODV) Handbook and standard formats for Internet and Gazette disclosures.
3. This industry consultation document covers the development of a Gas Information Disclosure Handbook, and the derivation table of adjustments to disclosed financial statements for the purpose of calculating financial performance measures. The Ministry plans to consult with industry separately on the development of an ODV Handbook.
1.2 Structure of the Forum
4. The forum will be held on Tuesday 22 February 2000 in the 12th floor Conference Room, Ministry of Commerce Building, 33 Bowen Street, Wellington, starting at 1pm. There is no fee for attendance. Afternoon tea will be provided. It is expected that the forum will conclude at around 5pm. If you have not already registered to attend the forum, please contact Julie Hartstone (ph 04-472 0030) or e-mail julie.hartstone@moc.govt.nz before Thursday 17 February.
5. The forum will be chaired by the Ministry, with support from PricewaterhouseCoopers and Rod Crone Consulting. It is expected that representatives will attend the forum from a wide range of gas utilities, consumer groups and auditors.
6. In order to ensure that as many industry participants as possible are represented and that participants in the forum have adequate opportunity to express their views, the Ministry requests that each organisation invited send no more than two representatives.
7. The Ministry intends that the following issues will be discussed at the forum:
- The proposed mandatory avoidable cost allocation methodology (ACAM);
- The proposals for allocation of "boundary items" amongst the businesses;
- The proposed list of items which will be required to be individually disclosed as part of the Pipeline businesses' financial statement disclosures;
- The proposed derivation table of adjustments to disclosed financial statements for the purpose of calculating financial performance measures; and
- The proposed Asset Management Plan information disclosure requirements.
8. Issues (i) to (iv) will be dealt with from 1pm to 3.30pm, and (v) will be dealt with from 3.30pm to 5pm. It is intended that a brief presentation will be made on each item. Participants will be encouraged to comment on issues as they arise. The Ministry is particularly interested in views on the compliance costs associated with each proposal.
1.3 Written Submissions
9. The Ministry also invites written comments on the issues raised in this consultation document and in the forum. We would appreciate any written comments by Friday 25 February 2000. Comments should be sent to:
Tony Fenwick
Manager
Energy Markets Policy Group
Ministry of Commerce
P O Box 1473
WELLINGTON
Fax 04-473 7010
Or by e-mail to: julie.hartstone@moc.govt.nz
(Please ensure that e-mailed submissions clearly identify the organisation making the submission.)
10. Respondents should note that written comments provided to the Ministry in response to this discussion paper will be among the information we hold which is subject to public release under the Official Information Act 1982. If the Ministry receives a request for this material we will be required to consider its release, in whole or in part, in terms of the criteria set out in the Act. The Act requires us to make the information available unless: (i) we consider that there is good reason, pursuant to the Act, to withhold the information; and (ii) that good reason outweighs the desirability, in the public interest, of making the information available. The grounds for withholding information are set out in the Official Information Act.
11. In providing your comments, please advise the Ministry if you have any objections to the release of any material and, if you do object the specific material that you would wish withheld, the grounds for withholding. The Ministry will carefully review any representations that you make in this regard in considering any Official Information Act requests that might be received relating to this material. You should note, however, that the decision on release rests with the Ministry. Any decision to withhold information is subject to appeal to the Ombudsman.
1.4 Implementation of the Amendments to the Regulations
12. Following the forum, the Ministry will proceed to prepare (in consultation with other government departments) a paper for Cabinet, with specific proposals for amending the Regulations. It is envisaged that, following Cabinet discussion, the proposals agreed by Cabinet would then be forwarded to the Parliamentary Counsel Office for preparation of the amendments.
13. It is expected that these processes will be completed in time to enable introduction of the proposals for the 2000/2001 financial year (that is, pipeline owners' 1999/2000 disclosures will be prepared on the basis of the current Regulations). Assuming the proposals are introduced disclosed financial statements for the 2000/2001 financial year would be required to be based on ACAM, and comply with generally accepted accounting practice (GAAP). The first Asset Management Plan information disclosures would be required by the end of the companies' 2001 financial year (as defined in the Regulations).
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