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Short-Term Issues


This Document is Archived


Energy

[ Last Updated 10 January 2006 ]


Policy Outputs

Electricity

The following issues will need to be considered and/or progressed over the next few months with respect to electricity:

  • The appointment of a new Electricity Commission Board member to fill a vacancy and re-appointment or replacement three Board members whose terms expire in September 2005.
  • The release of a public discussion paper on the possible transfer of jurisdiction for Transpower under Part 4A of the Commerce Act from the Commerce Commission to the Electricity Commission.
  • The release of draft regulations for connection of distributed generation to distribution lines networks to industry for their comment.
  • Advice to the Minister of Energy on recommendations by the Electricity Commission to amend Electricity Governance Rules.
  • Advice provided on:
    • regulations for connection of distributed generation
    • the merits and possible scope of national guidance under the Resource Management Act for electricity generation
    • whether to transfer the jurisdiction for Transpower under Part 4A of the Commerce Act from the Commerce Commission to the Electricity Commission
    • how to address issues affecting utilities sharing the road corridor
    • a proposal to amend the legislation to allow lines businesses to trade in hedge and spot energy markets up to the nominal capacity of their generating plant (submissions on a discussion paper released in March 2005 are currently being analysed)
    • the role of raising public awareness of sustainable energy (in conjunction with related initiatives), including consideration on whether New Zealand needs a sustainable energy education centre(s) and what form such a centre(s) could take
    • advice on applications for the Minister to grant exemptions from the low fixed charge regulations
    • quarterly surveys of electricity retail prices
    • Electricity Commission quarterly performance reports

Gas

The following issues will need to be considered and/or progressed over the next few months:

  • Judicial review proceedings against the Commerce Commission and the Crown in relation to the decision to control the gas pipelines of Powerco and Vector.
  • Monitoring and advice on gas industry co-regulatory progress, including Maui pipeline open access.
  • Monitoring and advice on the success of indigenous gas exploration for gas security of supply.

Liquid Fuels

The following issues will need to be considered and/or progressed over the next few months:

  • Calling of tenders for oil stocks and progressing legislative amendments to levy petroleum products.
  • In the wake of hurricane Katrina, New Zealand is contributing to the International Energy Agency's collective response to the disruptions to the oil market. The initial response calls for action over 30 days (to 3 October 2005).
  • Preparing draft emergency response manual for consultation.
  • Developing a new legislative framework to create fuel specifications that also include non-petroleum transport fuel (biofuel).
  • Decisions on lower, or zero, sulphur limits for petrol and diesel, and timing for introduction of these limits.

Climate Change

The Ministry is participating in a review of the climate change policy led by the Ministry for the Environment. Officials are required to report back to Ministers on climate change policy by October 2005.

Water Programme of Action

A report on next steps for water policy is due to be given to Ministers in December 2005.

Sustainable Energy

Reports-back on various actions under the Sustainable Energy Programme of Action report are due with Ministers over the period November 2005 to March 2006.

Administrative and Service Delivery Outputs

Energy Safety

The following issues will need to be considered and/or progressed over the next few months with respect to energy safety:

  • The Energy Safety Review Bill 2005, which was introduced to the House in June 2005, and is currently before the Commerce Select Committee. (Submissions to Select Committee closed on 12 August 2005. The Committee has not considered the submissions or received a departmental briefing prior to the election.) The Bill has a ranking of Priority 2 (must be passed in 2005).
  • [Three sentences withheld under Section 9 (2) (F) (iv) of the Official Information Act 1982].
  • A recent Cabinet decision to transfer responsibility for the Plumbers, Gasfitters, and Drainlayers Board to the Department of Building and Housing. A report to Cabinet Committee on the appropriate timing of the transfer and transition issues is due by 31 October 2005. The Department of Building and Housing has responsibility for preparing this report in consultation with the Ministry of Economic Development and the Ministry of Health.

International Energy Agency Energy Policy Review

An Agency review team will be in New Zealand in October 2005. Its draft report will be available for discussion in February 2006. The report will be published in April 2006.

APEC Energy Ministers' Meeting

This will be held in Korea from 19 to 20 October 2005.


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