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Output Expense > Policy Advice on Energy and Resource Issues

Description

This output expense provides policy advice on the effective operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and other natural resources).

The outputs included in this output expense contributed to the following business environment outcomes: Securing our energy future; Managing our natural resources; and Boosting the productivity of Auckland.

Quantity, Quality, Timeliness and Cost

Work Programme

All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were negotiated with the Minister.

The following outputs were included in this output expense for 2006/07:

National Energy Strategy

This output relates to leading the development of a national energy strategy (now referred to as the New Zealand Energy Strategy [NZES]). The development of the strategy involves leading a whole-of government process, and significant engagement with stakeholders and the wider public. This output has strong linkages with providing advice on climate change policies for the energy sector, and the replacement of the National Energy Efficiency and Conservation Strategy (NEECS) (now referred to as the New Zealand Energy Efficiency and Conservation Strategy [NZEECS]). In 2006/07, this output included the following:

• The draft NZES was released on 11 December 2006 and briefings held in the four main centres. The Ministry led a whole-of-government consultation process, including ensuring alignment with climate change policy and the NZEECS. Submissions closed on 30 March 2007 and a summary of submissions was reported to the Minister in June 2007. Further analysis of key issues for finalising the NZES was undertaken.

Electricity

This output relates to monitoring and advising the Government on effective governance and operation of the electricity market and implementation of regulations as required. In particular, it seeks to ensure that electricity industry arrangements and policy settings promote reliability, good environmental outcomes, and efficient and fair prices. In 2006/07, this output included the following:

Effective management of security of supply, including dry-year risk (both short- and long-term)

• The reserve generation plant at Whirinaki and other elements of the Electricity Commission's (EC) reserve energy policy operated effectively.

Effective wholesale and retail competition

• Quarterly reports on retail prices were provided to the Minister, including analysis of trends in prices and the various price drivers. Decisions were made to amend the Electricity Industry Reform Act 1998 to improve competition and facilitate investment and generation.

Effective governance of the electricity sector

• Ministry officials have continued to provide ongoing advice in relation to the EC's work on the operation of the electricity market under the Electricity Governance Rules and Regulations. The performance of the electricity market was also reviewed as part of the development of the NZES.

Efficient line services (including transmission security and efficient prices)

• Officials continued to work closely with the EC and Transpower on a number of significant transmission issues, including the development of an amended upgrade proposal, with the EC's final decision being released in early July 2007.
• Draft regulations to ensure generators can connect to distribution lines were released for consultation in September 2006 and again in April 2007, with regulations made in July 2007.

Fuels and Crown Resources

This output relates to 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. An area of focus was 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 gas industry arrangements, rules and regulations; and
• improving the regulatory environment on gas pipelines.

The Gas Industry Company (GIC) is well established and staffed. GIC has developed various retail and infrastructure arrangements, and is producing a number of arrangements in relation to the wholesale and transmission segments of the sector. Provisional "control" of Powerco and Vector gas networks has been put in place by the Commerce Commission. The implementation of final control has been delayed and is now not likely until April 2008. A proposed "threshold" regime for gas pipelines has been put on hold until the Government's review of Parts 4, 4A and 5 of the Commerce Act 1986 is completed.

Energy and the Environment

This output relates to 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 1991 (RMA), and contributing to the development of policy advice for fresh water. In 2006/07, this output included the following:

Participating actively in the development of advice on the domestic climate change policy package, as coordinated by the Ministry for the Environment (MfE) (Climate Change Office)

• The Ministry supported the passage of the Climate Change Response Act Amendment Bill through to enactment (this will enable individuals to hold and trade in units in the unit register). Provided input to policy on the development of an emissions trading system (led by MfE and the Treasury).

Participating actively in the inter-departmental process relating to the development of policy advice for fresh water

• The Ministry has participated in the work led by MfE and the Ministry of Agriculture and Forestry on improving freshwater allocation and quality – in particular, development of a National Policy Statement (NPS).

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

• The Ministry developed and provided submissions under the RMA on various proposed generation projects, covering wind and hydro. The Ministry is monitoring the development of regional energy strategies by several regional councils (to support the NZES). In conjunction with MfE, the Ministry also provided advice on facilitating renewable generation under the RMA, including the development of NPSs.

Crown Entity Monitoring

Monitoring and reporting to the Minister on the financial and non-financial performance of the EC were provided as reflected through:

• the Statement of Intent;
• the Output Plan; and
• management reports (for reference as appropriate to the Minister).

Advice was provided to the Minister on: proposals for a new Chair; the renewal of three appointments to the board; and the appointment of a new member to the board.

Cost (Figures are GST exclusive)	2007 Main Estimates $000	2007 Supplementary Estimates $000	2007 Actual $000	2006 Actual $000
Revenue:
Crown	4,447	4,912	4,773	4,009
Other	32	32	54	146
Total Revenue	4,479	4,944	4,827	4,155
Expenses:
Annual appropriations	4,479	4,944	4,827	4,155
Other appropriations	-	-	-	-
Total Expenses	4,479	4,944	4,827	4,155
Net Surplus/(Deficit)	-	-	-	-
Sources of Revenue Other			$000	$000
Petroleum fuels monitoring levies			-	105
Inter-departmental cost recovery			54	39
Miscellaneous			-	2
Total Revenue Other			54	146

Major Budget Variances

The Supplementary Estimates increase reflected implementation of the Biofuels Sales Obligation and fuel quality legislation ($175,000), a transfer from the Provision of Climate Change Register and Information to support the Carbon Sequestration project ($100,000), and other fiscally neutral transfers to meet additional cost pressures including those related to the draft NZES ($100,000) and the recruitment of the EC Executive Chairperson ($90,000).

The variance between 2006/07 and 2005/06 actual expenses was mainly due to expenditure associated with development of and consultation on the draft NZES.

The petroleum fuels monitoring levies received in 2005/06 related to the lower sulphur diesel publicity campaign. This was not repeated in 2006/07.

Output Expense > Management of the Crown Mineral Estate

Description

This output expense 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.

The outputs included in this output expense contributed to the following business environment outcomes: Securing our energy future; and Managing our natural resources.

Quantity, Quality, Timeliness and Cost

(Performance standards for outputs other than policy advice are in brackets where applicable.)

Work Programme

All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were negotiated with the Minister.

The following outputs were included in this output expense for 2006/07:

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 1991 and preparation of minerals programmes and regulations prescribed under the Crown Minerals Act 1991. The 2006/07 work programme included the following:

Conducting a review of the Crown Minerals Act 1991 by 31 December 2006

• The Ministry completed a comprehensive review of the Crown Minerals Act 1991. The review identified significant issues for both Crown and industry, which could be ameliorated through specific amendments to the Act.

Conducting a review of the Minerals Programme for Petroleum and implementing any approved changes by 30 June 2007

• Analysis of the programme to December 2006 revealed a wide range of concerns regarding its effectiveness to meet the rapidly changing exploration environment in New Zealand. The Minister provided agreement in October 2006 to officials preparing policy proposals for changes to the current petroleum minerals programme and consulting industry more generally on relevant policy issues. Further work will be undertaken in 2007/08.

Petroleum and Minerals Investment

This output relates to 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. In 2006/07, this output included the following:

Identifying and pursuing overseas organisations likely to invest in exploration and production, particularly in oil and gas

Promoting relevant financial, geotechnical and other investment data

Promoting New Zealand's petroleum and mineral resources at key international conferences

• Two block offers were concluded in Offshore Taranaki and the Great South Basin; five permits were awarded in the Great South Basin, and it is expected that oil companies will spend $1.2 billion exploring the area.
• Officials have developed and implemented a marketing and promotions plan for minerals and targeted events for attendance that will raise the profile of the New Zealand mineral estate, i.e. Prospectors and Developers Association Conference (PDAC).
• Officials have undertaken an economic evaluation of selected southern lignite deposits, upgraded data stored, and engaged with developers advocating maintaining access and advising on emerging relevant technologies, while advising Government on their economic development potential.

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

Permit applications processed:

• 132 (190) permit applications; and
• 372 (200) permit change applications.

The decrease in the number of permit applications is a direct correlation between number of permits and area of land under permit. Due to an increased volume of acreage applications, the total number of permits has reduced.

The increase in the number of permit change applications is a result of significant increases in commodity prices, especially gold and oil, and there has been a significant rise in activity within the New Zealand petroleum and minerals industry. The effect of this is an increase in the number of extensions of duration applications to maintain rights to acreage, and additional investors have applied for approval to farm into permits.

Estimated Crown revenue collected:

• Royalties – $85.2 ($52.1) million; and
• Energy resource levies – $55.1 ($71.5) million.

Gas from the Pohokura field, which is attracting a higher gas price, is displacing production from Maui and impacting the ERL revenue collection. However, the royalties paid on the Pohokura gas have exceeded forecast.

Quality

Petroleum and mineral permits (including licences) were monitored for compliance with work programme conditions to ensure the integrity of the allocation system by conducting on-site field inspections on:

• 40 (40) mineral/coal mining permits;
• 30 (30) mineral/coal prospecting and exploration permits; and
• 25 (a minimum of 25) compliance audits of energy resource levy or royalty payers, with any shortfalls pursued.

Timeliness

• 90% (90%) of new permit applications that were priority one (including changes to area, minerals and duration) were processed within 5 (5) working days following receipt of the Land and Minerals Status Report, completion of iwi consultation and all other permit holder obligations
• 100% (100%) of permits with outstanding fees or royalty obligations had compliance action commenced within one month of due date.

Cost (Figures are GST exclusive)	2007 Main Estimates $000	2007 Supplementary Estimates $000	2007 Actual $000	2006 Actual $000
Revenue:
Crown	3,003	3,003	2,934	3,425
Other	3,197	6,328	5,488	3,909
Total Revenue	6,200	9,331	8,422	7,334
Expenses:
Annual appropriations	6,106	8,204	8,198	7,474
Other appropriations	-	-	-	-
Total Expenses	6,106	8,204	8,198	7,474
Net Surplus/(Deficit)	94	1,127	224	(140)
Sources of Revenue Other			$000	$000
Petroleum			2,658	1,701
Minerals/mining			2,014	1,200
Coal permit annual fee			678	537
Conferences			-	353
Other fees			80	62
Total Fees			5,430	3,853
Inter-departmental cost recovery			57	49
Miscellaneous			1	7
Total Revenue Other			5,488	3,909

Major Budget Variances

The Supplementary Estimates increase was due to marginal cost increases reflecting permitting activity.

The variance between the Supplementary Estimates and actual Revenue Other reflects lower than predicted levels of petroleum fees ($2.658 million actual revenue against forecast $3.223 million).

The variance between 2006/07 and 2005/06 actual expenses mainly reflected expenditure associated with the development and implementation of the online data capture and permit management systems.

Output Expense > Administration of Gas and Electricity Regulations

Description

This output expense 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 (to 31 August 2006); and information disclosure for the gas industry.

Quantity, Quality, Timeliness and Cost

(Performance standards are in brackets where applicable.)

Energy Safety Advice

This output relates to providing advice on energy safety issues associated with the safe supply and use of gas and electricity. Projects for 2006/07 included the following:

Provide support for the passage of the Energy Safety Review Bill and the Energy (Miscellaneous Matters) Amendment Bill (LPG Levy) in accordance with the legislative timetable

• The Energy Safety Review Bill passed into law in December 2006.
• Ministers asked that the Energy (Miscellaneous Matters) Amendment Bill (LPG Levy) be placed on hold while further work on legislative amendments to provide for wider consideration on new levies for LPG and biogas safety work was undertaken.

Review and amend the Electricity Regulations 1997 and the Gas Regulations 1993, in particular as required by the Energy Safety Review Bill when passed into legislation

• During 2006/07, the discussion paper on the review of the Gas Appliances Safety Regime was completed. It incorporated feedback from submissions sought. This work is intended to both update the Gas Regulations 1993 and progress the removal of the special exemption for gas appliances from Trans-Tasman Mutual Recognition Arrangement (TTMRA) discussions with Australian regulators.
• Substantial progress was made on reviewing the Electricity Regulations 1997 and the Gas Regulations 1993. Due to delays with the passage of the Energy Safety Review Bill, the timing for completing the review of the regulations was extended to 2007/08.

Quality

Generic quality performance measures for policy advice, Ministerial services and briefings as detailed in the Ministry's Quality Standards for Policy Advice and Ministerial Servicing applied to this output.

Energy Safety Enforcement and Conformance

This output relates to 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

• 119 (80) audits of networks and distribution systems, and installations and appliances were undertaken.
• 106 (50–70) significant gas and electricity accidents and incidents, where there was serious injury or loss as defined in section 16 of the Electricity Act 1992 and section 17 of the Gas Act 1992,¹¹ were investigated.

Quality

• Electrical and gas safety representative organisations surveyed rate, on average, that they are 3(3) satisfied to 4(4) very satisfied with the Energy Safety Service's performance, as evidenced by an annual survey.¹²

Timeliness

• 94% (90%) of audit and inspection reports were completed within 30 working days of the audit or inspection.
• 100% (90%) of accident investigations were responded to and action commenced within 24 hours of notification of the accident.

Petroleum Monitoring

Quantity

• The Ministry oversaw the testing of a minimum of 101 (90) sample sets¹³ in accordance with a statistically based sampling plan to meet the requirements of the Petroleum Products Specifications Regulations 2002. Ninety sample sets is a minimum standard. Additional sample sets were taken for further validation.

Quality

• All (all) testing laboratory reports on petroleum quality were reviewed monthly to ensure that appropriate action had been taken on the test results and report recommendations.

Timeliness

• 95% (95%) of analysis of results from petroleum testing laboratories and recommendations were completed within 15 working days from receipt of reports.

Electrical Workers Licensing

Quantity

• 408 (400) electrical workers' registrations were actioned.
• 7,131 (11,000) practising licences were issued.
• 0 (600) telephone competency audits of registered electrical workers who had not uplifted a practising licence were commenced. The Electrical Workers Licensing Group continued to work with the industry to complete the required audits on transfer to the Department of Building and Housing (DBH).
• 0 (40) competency audits of electrical workers who held a provisional licence and/or were supervised trainees were conducted, as difficulties contacting electrical workers to be audited, particularly supervised trainees, were experienced. The Electrical Workers Licensing Group continued to work with the industry to complete the required audits on transfer to the DBH.

The administration of the Electrical Workers Licensing Regime transferred to the DBH from 1 September 2006. The forecast volumes for electrical workers' registrations and issue of practising licences were based on projections for the two-month period to 31 August 2006 while this output operated within the Ministry of Economic Development.

Quality

• All (all) decisions by the Registrar that were referred to the Electrical Workers Registration Board complied with the Electricity Act 1992, Electricity Regulations 1997 and published policies.

Timeliness

Licensing and registrations

• 95% (95%) of correctly completed practising licence applications were processed within 10 clear business days of receipt.
• 90% (95%) of correctly completed registration applications (New Zealand-based trainees) were processed within 10 clear business days of receipt.
• 65% (65%) of correctly completed overseas registration applications were processed within 10 clear business days of receipt.
• 408 correctly completed registration applications (New Zealand-based trainees) were received in the two months to 31 August 2006 against a forecast of 250. This volume impacted the ability of the unit to process all applications within the standard of 95%. The position was recovered by October but is not reflected in this report due to the transfer of activities to the DBH on 1 September 2006.

Complaints

• 100% (70%) of complaints against registered electrical workers were processed to notification of the Complaints Assessment Committee decision (subject to external parties, e.g. legal intervention) within 18 weeks.
• 100% (70%) of complaints against registered electrical workers were processed to notification of the Board's decision (subject to external parties, e.g. legal intervention) within 15 weeks.

Information Disclosure

Quantity and timeliness

• Annual compliance checks of all gas information disclosures were undertaken, with 80% (80%) of checks completed within 60 (60) working days of their receipt by the Ministry.
• Any cases of non-compliance were followed up with the companies concerned within 30 working days of the non-compliance being detected, achieving full compliance within 120 working days of the detection. (Note that, 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 (all) financial information disclosures were accompanied by an audit certificate.
• All (all) information disclosures were accompanied by a declaration form completed by a director of the company concerned.
• All (all) information entered into the Ministry database was subject to validation checks for accuracy and completeness.

Cost (Figures are GST exclusive)	2007 Main Estimates $000	2007 Supplementary Estimates $000	2007 Actual $000	2006 Actual $000
Revenue:
Crown	895	495	496	772
Other	5,623	5,065	4,744	8,668
Total Revenue	6,518	5,560	5,240	9,440
Expenses:
Annual appropriations	6,443	5,485	5,397	8,791
Other appropriations	-	-	-	-
Total Expenses	6,443	5,485	5,397	8,791
Net Surplus/(Deficit)	75	75	(157)	649
Sources of Revenue Other			$000	$000
Certificate of compliance sales			238	1,290
Practising licence fees			297	1,966
Other Electrical Workers Licensing Group fees			117	650
Electrical levies			2,855	3,450
Gas levies			735	801
Petroleum fuels monitoring levy			468	463
Other energy safety fees			3	-
Total Fees and Levies			4,713	8,620
Inter-departmental cost recovery			30	37
Miscellaneous			1	11
Total Revenue Other			4,744	8,668

Major Budget Variances

The Supplementary Estimates changes reflected a delay in the passage of LPG levy legislation enabling additional funding of energy safety activities due to the changing priorities of the legislative programme ($0.430 million); a fiscally neutral transfer of the output levy balance for the transfer of the Electrical Workers Licensing Group to the DBH ($0.128 million); and support for the baseline pressures package addressing fiscal risks within the Ministry ($0.400 million).

The variance between the Supplementary Estimates and actual Revenue Other reflects reductions in LPG levies, electrical workers' licence fees and gas levies.

The variance between 2006/07 and 2005/06 actual expenses reflected the transfer of the Electrical Workers Licensing Group to the DBH.

Output Expense > Provision of Climate Change Register and Information

Description

This output expense provides services relating to the development, implementation and operation of a register to enable the allocation and trading of emission 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 the register must be available for international audit in September 2006.

Quantity, Quality, Timeliness and Cost

The work programme, which was delivered as agreed with the Minister, included:

• development of the software needed to support the register by 1 September 2006 (the register will not be publicly launched until the United Nations Framework Convention on Climate Change (UNFCCC) has initialised the International Transaction Log (ITL) in 2007);
• the majority of New Zealand Emission Unit Register (NZEUR) initialisation tests for the implementation of the connection to the ITL completed (finalisation is pending the UNFCCC IT software functionality); and
• officials of the Ministry actively participating at the Registry System Administrator (RSA) Forum coordinated by the Secretariat of the 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

• Version 3 of the register is due to be released in August 2007. To the extent to which the register development is completed, the system adheres to applicable UNFCCC requirements as well as the Ministry standards for information technology projects. The register is on track to be released to the public in November 2007.

Cost (Figures are GST exclusive)	2007 Main Estimates $000	2007 Supplementary Estimates $000	2007 Actual $000	2006 Actual $000
Revenue:
Crown	1,556	756	742	774
Other	-	-	2	-
Total Revenue	1,556	756	744	774
Expenses:
Annual appropriations	1,556	756	744	774
Other appropriations	-	-	-	-
Total Expenses	1,556	756	744	774
Net Surplus/(Deficit)	-	-	-	-

Revenue Other was derived from inter-departmental cost recovery.

Major Budget Variances

The Supplementary Estimates decrease was due to a fiscally neutral transfer to Policy Advice on Energy and Resource Issues for the Carbon Sequestration project ($0.100 million), and support for the Ministry baselines pressures package addressing fiscal risks within the Ministry ($0.700 million). Delays by the UNFCCC in implementing the ITL has meant associated delays in the development work of the Climate Change Register.

Output Expense > Energy and Resource Information Services

Description

This output expense 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.

The outputs included in this output expense contributed to the following business environment outcomes: Securing our energy future; and Managing our natural resources.

Quantity, Quality, Timeliness and Cost

Outputs in this output expense in 2006/07 included the following:

Updating and publishing Energy Data files, the Energy Sector Greenhouse Gas Inventory Report and the Energy Outlook

• Two Energy Data files were published during the year (September 2006 and July 2007).
• The Energy Greenhouse Gas Emissions Report 1990–2006 (Energy Sector Greenhouse Gas Inventory Report) was published in July 2007.
• The Energy Outlook to 2030 was published in September 2006.

Updating and publishing crude oil, petrol and diesel prices

• The Ministry's website was updated weekly.

Managing New Zealand's response to any international disruption to oil supplies

• The Ministry released the Oil Emergency Response Strategy discussion document in September. Submissions were sought, received and have been analysed. Inter-agency meetings (with Ministry of Transport, MCDEM, EECA, and Department of Internal Affairs) have been held to discuss the next steps. The Minister agreed to defer the Cabinet report-back on the final emergency response strategy to 30 June 2008.

Managing New Zealand's international energy relationships

• The Ministry provided briefings and support for several Ministerial-level energy meetings, including: the Pacific Energy Ministers meeting in April; the United Nations Commission on Sustainable Development in May; and the International Energy Agency (IEA) Governing Board and APEC Energy Ministers meetings in May. The Ministry also hosted the 33rd meeting of the APEC Energy Working Group in Auckland in March.

Timeliness

All publications and briefings are produced to deadlines specified in the Ministry of Economic Development Output Plan

There were some small delays due to data sourcing taking longer than expected.

Quality

Generic quality performance measures for policy advice, Ministerial services and briefings as detailed in the Ministry's Quality Standards for Policy Advice and Ministerial Servicing applied to this output expense.

All material produced for publication was reviewed for completeness and accuracy prior to publication in accordance with internal systems and procedures and, where relevant, international requirements.

Cost (Figures are GST exclusive)	2007 Main Estimates $000	2007 Supplementary Estimates $000	2007 Actual $000	2006 Actual $000
Revenue:
Crown	749	1,839	1,839	1,302
Other	1,051	1,051	1,111	1,003
Total Revenue	1,800	2,890	2,950	2,305
Expenses:
Annual appropriations	773	1,863	1,839	1,802
Other appropriations	1,027	1,027	882	980
Total Expenses	1,800	2,890	2,721	2,782
Net Surplus/(Deficit)	-	-	229	(477)
Sources of Revenue Other			$000	$000
Petroleum fuels monitoring levy			1,064	962
Sale of publications			10	19
Inter-departmental cost recovery			37	22
Total Revenue Other			1,111	1,003

Major Budget Variances

The Supplementary Estimates increase in funding reflected work on meeting IEA obligations for reserve oil stocks ($0.540 million), the impact of the release of the draft New Zealand Energy Strategy on the resources modelling work programme ($0.400 million) and the hosting of the APEC Energy Working Group ($0.150 million).

The variance between Supplementary Estimates and actual expenses is due to the draft New Zealand Energy Strategy resources modelling work requiring less dedicated resources than originally anticipated.

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