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 2004/2005.
Electricity
This output involves monitoring and advising the Government on effective governance and operation of the electricity market and implementation of regulations as required. In particular, ensuring that electricity industry arrangements and policy settings promote investment and retail competition and security of supply focusing on:
- efficient management of security of supply, including dry-year risk;
- effective wholesale and retail competition;
- effective governance of the electricity sector; and
- efficient line services (including transmission security and efficient prices).
Gas, Oil and Other Resources
This output involves monitoring and advising the 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 coordinated 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 Development Programme of Action for 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
| | 2004/2005
Forecast | 2003/2004
Supple-
mentary
Estimates | 2003/2004
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 4,036 | 6,250 | 6,250 |
| Third Party Revenue | 83 | 97 | 97 |
| Expenses | 4,119 | 6,347 | 6,347 |
| Surplus/(Deficit) | - | - | - |
Output Class - Management of the Crown Mineral Estate
This output class provides services relating to the management of Crown-owned minerals under the Crown Minerals Act 1991 and minerals programmes issued under this Act.
The Crown owns all in-ground petroleum, gold and silver in New Zealand and approximately half of the coal and other mineral resources. It also has jurisdiction of the petroleum and minerals in New Zealand's exclusive economic zone and continental shelf.
Outputs provided include maintenance of an efficient and effective management regime for the exploration of petroleum, mineral and coal resources and allocating and managing prospecting, exploration and mining permits; promotion of investment opportunities in exploration and development of petroleum and minerals; policy and strategic advice on the Crown minerals sector; management of the geoscience resource data library; and collection of royalties, levies and fees related to petroleum and minerals extraction and permits.
Service Performance
Where appropriate, comparative figures for the previous year are shown in parentheses.
Petroleum and Minerals Policy
This output provides operational policy advice on the management of the Crown mineral estate, including preparation and review of minerals programmes and regulations prescribed under the Crown Minerals Act 1991. The 2004/2005 work programme includes:
- operational policy and strategic advice on the petroleum and minerals sector; and
- completing and publishing the Petroleum Minerals Programme 2005.
Quantity, Quality and Timeliness
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 policy advice will apply as detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing.
Petroleum and Minerals Investment
This output involves activity to secure appropriate international and domestic sourced investment to enable the Crown's petroleum and mineral assets to contribute to the economic development of New Zealand. The output includes exploring partnership opportunities with domestic and international organisations to attract explorers to New Zealand; identifying and pursuing overseas organisations likely to invest in exploration and mining, especially with regard to oil and gas; ensuring that both financial and geo-technical data is readily accessible to potential explorers; and ongoing assessment of the success of investment strategies. Projects will be delivered as detailed in the Ministry of Economic Development Output Plan and include:
- provision of strategic investment advice for ensuring New Zealand's business regime is internationally competitive;
- an investment strategy and marketing plans for minerals and coal;
- implementation of the strategies set out in the marketing plans for petroleum and minerals;
- ongoing monitoring of the effectiveness of these strategies and policies and reviewing all plans against marketing objectives; and
- implementing a customer research and management system.
Exploration and Mining Services
Quantity
Process an estimated:
- 165 (165) permit applications; and
- 220 (220) permit change applications.
Estimated Crown revenue collected:
- Royalties - $32.7 ($33.3) million; and
- Energy resource levies - $77.4 ($86.3) million.
An estimated 170 (145) records and reports received from petroleum and minerals holders will be entered into the resource data library.
Quality
Petroleum and mineral permits (including licences) will be monitored for compliance with work programme conditions to ensure the integrity of the allocation system by:
- reviewing all (100%) petroleum and mineral permits against permit work statements; and
- conducting on-site field inspections on:
- 30 mineral mining permits; and
- 15 mineral prospecting and exploration permits.
Petroleum and mineral permit holders will be notified in writing of any non-compliance with work programme conditions within 10 working days of the non-compliance activity being identified.
A minimum of 10 (10) compliance audits of energy resource levy or royalty payers will be undertaken within five months of receipt of annual royalty or levy and any shortfalls pursued.
Timeliness
- 90% (90%) of new permit applications that are priority one21 (including changes to area, minerals and duration) will be processed within four (six) months of receipt.
- 90% (90%) of client enquiries and data information requests will be actioned and completed within ten working days of receipt.
- 95% (95%) of royalties will be collected within one (1) month of due date.
- 90% (90%) of fees will be collected within two (2) months of due date.
Costs: Output Class - Management of the Crown Mineral Estate
| | 2004/2005
Forecast | 2003/2004
Supple-
mentary
Estimates | 2003/2004
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 2,184 | 2,184 | 2,184 |
| Third Party Revenue | 3,186 | 3,536 | 3,186 |
| Expenses | 5,276 | 5,626 | 5,626 |
| Surplus/(Deficit) | 94 | 94 | (256) |
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 provides for advice on energy safety issues associated with the safe supply and use of gas and electricity.
Quantity and Timeliness
Provide support for the passage of the Energy Safety Review Bill in accordance with the legislative timetable and prepare regulation amendments required to support the EnergySafe programme.
Review and amend 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 provides for operating an effective investigation, compliance, enforcement and communication regime for gas and electricity safety, including reviewing and implementing changes in legislation, regulations and standards, and a petroleum quality monitoring regime.
Quantity
8022 (90) audits, surveys and inspections of gas and electricity networks and distribution systems, and installations and appliances will be undertaken.
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 199223 are expected to be investigated. Including minor accidents and incidents, the number of events is expected to total 80-100.
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.24
Timeliness
90% (90%) of audit and inspection reports will be completed within 30 working days of the audit or inspection.
90% of accident investigations will be responded to and action commenced within 24 hours of notification of the accident.
Petroleum Monitoring
Quantity
The Ministry will oversee the testing of a minimum of 90 sample sets25 (250 petroleum monitoring tests) 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% of analysis of results from petroleum testing laboratories and recommendations will be completed within 15 working days from receipt of reports.
Electrical Workers Licensing
Quantity
Expected numbers:
- Action an estimated 1,000 (1,000) electrical workers registrations.
- Issue an estimated 20,500 (20,500) practising licenses.
Conduct an estimated:
- 5,000 (5,000) telephone competency audits26 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 (100%) 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 clear business days of receipt;
- 95% (95%) of correctly completed registration applications (New Zealand based trainees) will be processed within 10 clear business days of receipt; and
- 65% (65%) of correctly completed overseas registration applications will be processed within 10 clear business days of receipt.
Complaints
- 95% (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 25 weeks.
- 95% (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 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.
- 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.
- 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
| | 2004/2005
Forecast | 2003/2004
Supple-
mentary
Estimates | 2003/2004
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 1,064 | 785 | 785 |
| Third Party Revenue | 7,631 | 7,508 | 7,508 |
| Expenses | 8,606 | 8,204 | 8,204 |
| Surplus/(Deficit) | 89 | 89 | 89 |
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. Current indications are that the register may be required for international audit in 2006, and international trading will start once the Protocol comes into force, which is expected to be 1 January 2008.
Service Performance
Where appropriate, comparative figures for the previous year are shown in parentheses.
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 the detailed business requirements specifications for development of a New Zealand national unit register; and
- preparation of a business case and project budget for the Minister's approval.
Preparation of the detailed business requirements specification is dependent on the United Nations Framework Convention on Climate Change (UNFCCC) completing their technical documentation on national register requirements.
Quality and Timeliness
The detailed business specifications will be prepared in accordance with the Ministry of Economic Development standards and practices for information technology projects, with delivery and reporting against agreed milestones. 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
| | 2004/2005
Forecast | 2003/2004
Supple-
mentary
Estimates | 2003/2004
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 427 | 427 | 161 |
| Third Party Revenue | - | - | - |
| Expenses | 427 | 427 | 161 |
| 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
Where appropriate, comparative figures for the previous year are shown in parentheses.
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 Energy Outlook;
- 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
| | 2004/2005
Forecast | 2003/2004
Supple-
mentary
Estimates | 2003/2004
Estimated
Actual |
| | $000 | $000 | $000 |
| Revenue Crown | 1,339 | 1,231 | 1,231 |
| Third Party Revenue | 1,075 | 975 | 975 |
| Expenses | 2,405 | 2,197 | 2,197 |
| Surplus/(Deficit) | 9 | 9 | 9 |
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