Appendix 2: Legislation
Commerce Act 1986
The Commerce Act gives the Minister of Commerce the power to recommend that specific goods or services be controlled. However, under section 13 of the Ministry of Energy (Abolition) Act 1989, the Minister of Energy can exercise this power for specified classes of energy-related goods and services.
Part 4A also gives the Commission powers and functions in relation to information disclosure and asset valuation.
Electricity Act 1992
This Act sets out the regulatory framework for electricity. The Minister may grant and revoke applications for electricity operator status, conferring land access powers in relation to roads and rail crossings.
The Act provides regulation-making powers on issues such as information disclosure, retail competition, fixed charges and access to information for beneficiaries of trusts. It also provides powers for a Crown entity governance board to be established, and for associated regulations on wholesale market and transmission.
The Act contains wide-ranging regulation-making powers for matters of electrical safety, quality and measurement, and the Minister is the approving authority for Electrical Codes of Practice. The Minister also appoints the Electrical Workers Registration Board.
Gas Act 1992
This Act sets out the regulatory framework for gas. The Minister may recommend Orders in Council for gas operator status, which confers land access powers in relation to roads and rail crossings. There are wide-ranging regulation-making powers for information disclosure, safety, quality and measurement. The Minister is the approving authority for Gas Codes of Practice.
Energy Companies Act 1992
This Act required corporatisation of the former Electricity Power Boards and city-owned electricity and gas operations. It contains accountability requirements for energy companies in public ownership.
Electricity Industry Reform Act 1998
This Act requires the ownership separation of lines from retailing and generation in electricity.
International Energy Agreement Act 1976
This Act vests powers in the Governor-General and the Minister to enable New Zealand to carry out its obligations under the International Energy Agreement.
Lake Taupo Compensation Claims Act 1947
The Act relates to agreements about the control of the Waikato River for the purposes of flood control and electricity generation. A maximum working level for Lake Taupo is set in the Act, and the Minister can alter this by notice in the Gazette. The Act provides the basis on which compensation will be assessed for any claims in relation to the control of the lake level.
Manapouri-Te Anau Development Act 1963
The Minister's role under the Act is to gazette operating guidelines for the levels of the two lakes. The guidelines are recommended by the Guardians of Lakes Manapouri and Te Anau, who are appointed by the Minister for Conservation.
Ministry of Energy Abolition Act 1989
The Act gives the Minister the price control powers of the Minister of Commerce under the Commerce Act 1986, on prices of energy goods and services. The Act also empowers the collection of electricity, gas and petroleum levies. These are used to fund safety-related regulatory activities, tests of the quality of petroleum products, and New Zealand's International Energy Agency membership.
Petroleum Demand Restraint Act 1981
This Act allows regulations to be made, at times of shortage, for rationing or other form of control of petroleum products and motor vehicle use.
Petroleum Sector Reform Act 1988
The Act removed licensing requirements for retailing and wholesaling of petroleum products, thereby completing the deregulation of the sector.
Electricity (Information Disclosure) Regulations 1999
These regulations require electricity line businesses to disclose publicly extensive information about their financial performance and quality of supply. The purpose of the Regulations is to allow analysts, retailers and consumers to assess performance. The Ministry also monitors line businesses' performance based on the disclosures. Responsibility for information disclosure in electricity is scheduled to pass to the Commerce Commission.
Gas (Information Disclosure) Regulations 1997
These regulations perform the same role for gas pipeline businesses as the Electricity (Information Disclosure) Regulations.
Electricity Regulations 1997
The Regulations cover registration and practising licences for electrical workers, prescribe the electrical work that categories of workers (and homeowners) may do, and cover the inspection and testing of prescribed electrical work. The Regulations also address the safety of electrical systems, including generation, transmission and distribution, installations and appliances. They assign obligations and prescribe safety standards.
Electricity (Hazards from Trees) Regulations 2003
These Regulations provide for the control of trees adjacent to electricity lines. Incidents caused by tree contact with lines are a major source of outage. The Regulations are to protect the security of the supply of electricity and public safety.
Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004
The Regulations require electricity retailers to offer a low fixed charge tariff option to domestic consumers. The low fixed charge tariff option must have a fixed charge no greater than 30 cents per day (excluding GST and after deducting prompt payment discount). The low fixed charge tariff must be cheaper than other tariff options for the equivalent electricity supply package for customers using less than 8,000 kWh of electricity per year.
Electricity Governance Rules and Regulations 2003
These support the operation of the electricity market and replaced a number of industry arrangements relating to the wholesale and retail markets and transmission grid security.
Gas Regulations 1993
The Regulations address the safety of gas systems below the gate station, including distribution, installations and appliances. (Gas production and transmission are covered under the Health and Safety in Employment Act 1992.) They assign obligations and prescribe safety standards.
Crown Minerals Act 1991
This Act sets out the management regime for Crown-owned minerals, covering policies and procedures for the efficient allocation of the Crown's minerals and for obtaining a fair financial return.
Crown Minerals (Minerals and Coal) Regulations 1999
The Regulations set out information requirements for making minerals and coal permit applications, changing permits and transferring applications, royalty returns and payments, and reporting to the Crown on prospecting and exploration.
Crown Minerals (Petroleum) Regulations 1999
The Regulations set out the information requirements for making petroleum permit applications, permit and licence change and transfer applications, royalty returns and payments, and reporting to the Crown on prospecting, exploration and mining activities. They also impose certain requirements on petroleum permit and licence holders concerning well drilling, geophysical and geochemical surveying and prevention of petroleum waste.
Energy Resources Levy Act 1976
Under this Act, a levy is imposed on the production of open-cast coal and natural gas, with the exception of any natural gas produced as the result of a discovery after January 1986. Revenue from the levy was $75 million in the year ended June 2005. Levy revenue is paid into the Consolidated Fund. The levy is not payable on post-1986 gas discoveries (higher royalties apply to these discoveries).
The levy was introduced in the mid-1970s to adjust price relativities between oil, gas and coal in response to the international oil shocks at the time.
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