Control of Gas Pipeline Services
26. In 2005, the Commerce Commission recommended that Part 5 control be imposed on the gas pipeline services of Vector and Powerco. This recommendation was approved by Cabinet (CAB Min (05) 27/3). Part 5 control on Vector and Powerco was imposed from 25 August 2005.
27. The Commission also recommended that strengthened regulatory constraints on all gas pipeline companies be introduced in the form of a targeted (thresholds) control regime, similar to the thresholds regime for electricity lines companies under Part 4A of the Commerce Act. This recommendation was agreed to by Cabinet (CAB Min (05) 27/3).
28. Officials recommend deferring work on the gas thresholds regime until the Review of Regulatory Control Provisions is complete. Officials consider that they would be in a much better position to design and introduce a gas thresholds regime following the Review.
29. It is also proposed that enhancements to the gas information disclosure regime are held over until the outcomes of the Review are known.
30. Officials consider that the risk of deferring both the introduction of a gas thresholds regime and the enhancement of the gas information disclosure regime is low given that the two largest gas pipeline businesses (Powerco and Vector) have their gas distribution services under Part 5 control, and because in the Gas Control Inquiry, the Commerce Commission found no case for price controlling other gas pipeline businesses at this time.
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