Vote: Energy
Output Class > Policy Advice on Energy and Resource Issues
This output class provides policy advice on the effective operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and other natural resources). The following outputs are included in this output class for 2005/2006.
Electricity
This output involves monitoring and advising government on effective governance and operation of the electricity market and implementation of regulations as required. In particular, it will ensure that electricity industry arrangements and policy settings promote reliability, good environmental outcomes, and efficient and fair prices, focusing on:
- effective management of security of supply, including dry-year risk (both short- and long-term);
- effective wholesale and retail competition;
- effective governance of the electricity sector; and
- efficient line services (including transmission security and efficient prices).
Fuels and Crown Resources
This output involves monitoring and advising government on effective operation of the gas and oil markets, including fuel quality and implementation of regulations as required. The output also involves advice on the allocation and management of natural resources, particularly Crown-owned resources, and Treaty of Waitangi claims in respect of natural resources. In particular, ensuring that gas industry governance and market arrangements are implemented by market participants to promote a smooth transition to the post-Maui environment, focusing on:
- security of supply in the gas sector;
- effective governance of the gas sector;
- effective wholesale market arrangements;
- open access to the Maui pipeline; and
- improving the regulatory environment on gas pipelines.
Energy and the Environment
This output involves contributing to policy advice on the development of a response to New Zealand's climate change obligations under the Kyoto Protocol, monitoring and providing advice on plans and policies under the Resource Management Act (RMA), and contributing to the development of the Sustainable Development Programme of Action for freshwater. In particular:
- participating actively in the inter-departmental process relating to the development of the Sustainable Development Programme of Action for freshwater;
- participating actively in the development of advice on the domestic climate change policy package, as co-ordinated by the Ministry for the Environment (Climate Change Office); and
- monitoring and advising on policies and plans under the RMA with respect to their potential impact on significant energy developments, infrastructure and renewable energy sources.
Sustainable Energy
This output involves leading the inter-departmental process relating to the development of the Sustainable Development Programme of Action on Energy. In particular, the development of a framework for energy policy over the medium- to long-term.
Service Performance
Policy advice will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan.
Generic quantity, quality and timeliness performance measures for all policy advice, Ministerial services and briefings supplied by the Ministry of Economic Development are detailed in Quality Standards for Policy Advice and Ministerial Servicing.
Costs: Output Class - Policy Advice on Energy and Resource Issues
| | 2005/2006
Forecast | 2004/2005
Supple-
mentary
Estimates | 2004/2005
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 3,860 | 4,590 | 4,590 |
| Third Party Revenue | 169 | 51 | 51 |
| Expenses | 4,029 | 4,641 | 4,641 |
| Surplus/(Deficit) | - | - | - |
Output Class > Management of the Crown Mineral Estate
This output class provides services relating to the development and management of the Crown's petroleum and mineral resources, comprising all in-ground petroleum, gold and silver, and approximately half of the coal and other minerals. The three principal services provided under this output are:
- allocation of interests in the Crown mineral estate and monitoring ongoing regulatory compliance;
- promoting international investment in exploration and production; and
- providing policy advice on matters affecting the Crown's interests in petroleum and minerals.
Permit Allocation and Regulatory Compliance
This output provides an efficient and effective management regime for the exploration of petroleum, mineral and coal resources, including allocating and managing prospecting, exploration and mining permits; managing the geotechnical resource data; and collecting all royalties, levies and fees payable to the Crown.
Quantity
Process an estimated:
- 175 (165) permit applications; and
- 250 (220) permit change applications.
Estimated Crown revenue collected:
- Royalties - $47.1 ($32.7) million; and
- Energy resource levies - $71.5 ($77.4) million.
Quality
Petroleum and mineral permits (including licences) will be monitored for compliance with work programme conditions to maintain the integrity of the allocation system by conducting on-site field inspections on:
- 35 (30) mineral/coal mining permits; and
- 25 (15) mineral/coal prospecting and exploration permits.
A minimum of 15 (10) compliance audits of energy resource levy or royalty payers will be undertaken and any shortfalls pursued.
Timeliness
- 90% of new permit applications that are priority one17 (including changes to area, minerals and duration) will be processed within five working days following receipt of the Land and Minerals Status Report, completion of iwi consultation, and all other permit holder obligations.
- 95% of permits with outstanding fees or royalty obligations will have compliance action commenced within one month of due date.
Petroleum and Minerals Investment
This output involves promoting New Zealand for international and domestic investment to enable the Crown's petroleum and mineral resources to contribute to the economic development of New Zealand. It includes:
- identifying and pursuing overseas organisations likely to invest in exploration and production, particularly in oil and gas;
- promoting relevant financial, geo-technical and other investment data; and
- promoting New Zealand's petroleum and mineral resources at key international conferences.
Quantity and Timeliness
- host two international conferences in New Zealand, one for petroleum exploration and one for minerals exploration, by 30 June 2006; and
- conclude three block offers in offshore petroleum basins by 1 April 2006.
Petroleum and Minerals Policy
This output provides policy advice on the management of the Crown mineral estate, including periodic reviews of the Crown Minerals Act and preparation of minerals programmes and regulations prescribed under the Crown Minerals Act 1991. The 2005/2006 work programme includes:
- completing and publishing a new Minerals Programme for Minerals and Coal by 31 December 2005; and
- conducting a review of fee regulations and implementing any associated changes by 31 December 2005.
Costs: Output Class - Management of the Crown Mineral Estate
| | 2005/2006
Forecast | 2004/2005
Supple-
mentary
Estimates | 2004/2005
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 3,079 | 3,179 | 3,179 |
| Third Party Revenue | 3,785 | 3,492 | 3,492 |
| Expenses | 6,770 | 6,407 | 6,327 |
| Surplus/(Deficit) | 94 | 264 | 344 |
Output Class > Administration of Gas and Electricity Regulations
This output class provides advice on the administration of gas and electricity safety and associated policy work, and administers regimes on supply, quality and measurement for gas and electricity safety; petroleum quality monitoring; electrical worker licensing; and information disclosure for the gas industry.
Service Performance
Where appropriate, comparative figures for the previous year are shown in parentheses.
Energy Safety Advice
This output involves advice on energy safety issues associated with the safe supply and use of gas and electricity. In 2005/2006 this will include:
- providing support for the passage of the Energy Safety Review Bill and the Ministry of Energy Abolition Bill (LPG levy) in accordance with the legislative timetable; and
- reviewing and amending the Electricity Regulations 1997 as required to reflect the development of standards and new technology.
Quality
Generic quality performance measures for policy advice, Ministerial services and briefings as detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing will apply to this output.
Energy Safety Enforcement and Conformance
This output involves operating an effective investigation, compliance, enforcement and communication regime for gas and electricity safety, including reviewing and implementing changes in legislation, regulations and standards.
Quantity
8018 (80) audits of networks and distribution systems, and installations and appliances will be undertaken.
30 (30) significant gas and electricity accidents and incidents, where there is serious injury or loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act 199219 are expected to be investigated.
Quality
Electrical and gas safety representative organisations surveyed rate, on average, that they are (3) satisfied to (4) very satisfied with the Energy Safety Service's performance, as evidenced by an annual survey.20
Timeliness
90% (90%) of audit and inspection reports will be completed within 30 (30) working days of the audit or inspection.
90% (90%) of accident investigations will be responded to and action commenced within 24 (24) hours of notification of the accident.
Petroleum Monitoring
This output involves monitoring the quality of petroleum to ensure its safety.
Quantity
The Ministry will oversee the testing of a minimum of 90 (90) sample sets21 in accordance with a statistically-based sampling plan to meet the requirements of the Petroleum Products Specifications Regulations 2002.
Quality
All testing laboratory reports on petroleum quality will be reviewed monthly to ensure that appropriate action has been taken on the test results and report recommendations.
Timeliness
95% (95%) of analysis of results from petroleum testing laboratories and recommendations will be completed within 15 (15) working days from receipt of reports.
Electrical Workers Licensing
Quantity
Expected numbers:
- action an estimated 1,000 (1,000) electrical workers registrations; and
- issue an estimated 20,500 (20,500) practising licenses.
Conduct an estimated:
- 5,000 (5,000) telephone competency audits22 of registered electrical workers who have not uplifted a practising licence; and
- 200 (200) competency audits of electrical workers who hold a provisional licence and/or are supervised trainees.
Quality
All decisions by the Registrar that are referred to the Electrical Workers Registration Board will comply with the Electricity Act 1992 and Electricity Regulations 1997 and with published policies.
Timeliness
Licensing and Registrations
- 95% (95%) of correctly completed practising licence applications will be processed within 10 (10) clear business days of receipt;
- 95% (95%) of correctly completed registration applications (New Zealand-based trainees) will be processed within 10 (10) clear business days of receipt; and
- 65% (65%) of correctly completed overseas registration applications will be processed within 10 (10) clear business days of receipt.
Complaints
- 70% (95%) of complaints against registered electrical workers will be processed to notification of the Complaints Assessment Committee decision (subject to external parties, e.g. legal intervention) within 18 (25) weeks; and
- 70% (95%) of complaints against registered electrical workers will be processed to notification of the Board's decision (subject to external parties, e.g. legal intervention) within 15 (25) weeks.
Information Disclosure
Quantity and Timeliness
- annual compliance checks of all gas information disclosures will be undertaken, with 80% (80%) of checks completed within 60 (60) working days of their receipt by the Ministry; and
- any cases of non-compliance will be followed up with the companies concerned within 30 (30) working days of the non-compliance being detected, with the aim of achieving full compliance within 120 (120) working days of the detection. (Note in some cases it is possible that prosecution could be required in order to achieve full compliance, and as a result there could be a considerable delay before full compliance is achieved.)
Quality
- all financial information disclosures will be accompanied by an audit certificate;
- all information disclosures will be accompanied by a declaration form completed by a director of the company concerned; and
- all information entered into the Ministry database will be subject to validation checks for accuracy and completeness.
Costs: Output Class - Administration of Gas and Electricity Regulations
| | 2005/2006
Forecast | 2004/2005
Supple-
mentary
Estimates | 2004/2005
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 896 | 934 | 834 |
| Third Party Revenue | 8,444 | 7,396 | 7,396 |
| Expenses | 9,250 | 8,240 | 8,140 |
| Surplus/(Deficit) | 90 | 90 | 90 |
Output Class > Provision of Climate Change Unit Register and Information
This output class provides services relating to the development, implementation and operation of a register to enable the allocation and trading of climate change units under the Climate Change Response Act 2002. This Act was passed in order to meet New Zealand's obligations under the Kyoto Protocol which came into force on 16 February 2005. The first Commencement Period will start on 1 January 2008 and current indications are that the register may be required for international audit in 2006.
Service Performance
The work programme which will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan is expected to include:
- preparation of a business case and project budget for the Minister's approval;
- development or definition of detailed user requirements; and
- input into the international registry administrators' group co-ordinated by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC).
Quality and Timeliness
Implementation of the register will be in accordance with the Ministry of Economic Development standards and practices for information technology projects. This work will also need to comply with the international requirements for national registers as specified by the UNFCCC in their technical documentation.
Costs: Output Class - Provision of Climate Change Unit Register and Information
| | 2005/2006
Forecast | 2004/2005
Supple-
mentary
Estimates | 2004/2005
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 1,556 | 694 | 381 |
| Third Party Revenue | - | - | - |
| Expenses | 1,556 | 694 | 381 |
| Surplus/(Deficit) | - | - | - |
Output Class > Energy and Resource Information Services
This output class covers the provision of information and technical advice on energy and resources, the management of the response to any international disruption in oil supplies, and the management of New Zealand's energy-related international relationships.
Service Performance
Outputs in this output class will be delivered as detailed in the Ministry of Economic Development Output Plan and include:
- updating and publishing Energy Data Files, the Energy Sector Greenhouse Gas Inventory Report, and the Sustainable Energy Futures;
- updating and publishing crude oil, petrol and diesel prices;
- managing New Zealand's response to any international disruption to oil supplies; and
- managing New Zealand's international energy relationships.
Timeliness
All publications and briefings will be produced to deadlines specified in the Ministry of Economic Development Output Plan.
Quality
Generic quality performance measures for policy advice, Ministerial services and briefings as detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing will apply to this output class.
All material produced for publication will be reviewed for completeness and accuracy prior to publication in accordance with internal systems and procedures and, where relevant, international requirements.
Costs: Output Class - Energy and Resource Information Services
| | 2005/2006
Forecast | 2004/2005
Supple-
mentary
Estimates | 2004/2005
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 1,439 | 708 | 708 |
| Third Party Revenue | 989 | 1,078 | 1,078 |
| Expenses | 2,428 | 1,786 | 1,786 |
| Surplus/(Deficit) | - | - | - |
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