Background
Introduction
1. The Commerce Commission (Commission) is undertaking the Natural Gas (gas) Control Inquiry (Inquiry) in response to a request from the Minister of Energy (Minister) dated 30 April 2003. The Minister has requested the Commission to report by 29 November 2004.
2. The letter of request and subsequent correspondence with the Minister (terms of reference) require the Commission to report on whether goods and services supplied by persons in markets directly related to either a gas transmission system or a gas distribution system or both (gas services) should be controlled.
3. This report presents the Commission's final recommendations.
Suppliers
4. The suppliers of gas services can be grouped under two headings: transmission and distribution service suppliers.
Table 1: Transmission and Distribution Service Providers: Transmission| Transmission Business | Transmission Pipeline Systems |
| NGC Transmission (NGCT) | South, North, Kapuni to Rotowaro, Bay of Plenty, Morrinsville, LTS, Frankley Road |
Maui Development Limited
(Shell, Todd, OMV) | Oaonui to Huntly (Maui pipeline) |
| Todd Petroleum and Shell | Kapuni to Hawera |
| Todd Taranaki | McKee Production Station to Faull Road |
| Swift Energy | Rimu to NGC South and Waihapa to New Plymouth and TCC power stations (the TAW pipeline) |
| Westech Energy | Surrey Road to NGCLTS |
Table 1: Transmission and Distribution Service Providers: Distribution| Distribution Business | Distribution Pipeline Systems |
| NGC Distribution (NGCD) | Northland, Whangaparoa, South Auckland, Waikato, Bay of Plenty, Rotorua, Taupo, Gisborne, Kapiti Coast |
| Powerco | Napier and Hastings area, Southern Hawke's Bay, Taranaki, Manawatu, Levin and Foxton, Hutt/Mana and Wellington |
| Vector | Greater Auckland, Tuakau and Ramarama |
| Wanganui Gas | Wanganui/Rangitikei |
| Nova Gas | Wellington, Porirua, Hutt Valley, Hastings, Hawera, Papakura and Manukau City |
5. NGCT is currently the only transmission business that provides third party access to its transmission system. However, Maui Development Limited (MDL) is currently working through a proposal to offer a service to transport third party gas on the Maui pipeline.
Inquiry Process
6. The Commission has previously released the Draft Framework Paper and Draft Report.I Conferences have been held and submissions taken on both of these reports. The Commission's Inquiry process is detailed in Table 2.
Table 2: Inquiry Process| Item | Date |
| Proposed process released by Commission | 30 May 2003 |
| Written submissions on proposed process | 16 June 2003 |
| Draft Framework Paper released by Commission | 16 July 2003 |
| Process published in Gazette notice pursuant to s 57(2) of the Commerce Act | 25 July 2003 |
| Written submissions on Draft Framework Paper | 20 August 2003 |
| Conference on Draft Framework Paper | 1-4 September 2003 |
| Cross submissions following conference | 19 September 2003 |
| Draft Report released by Commission | 21 May 2004 |
| Revised process published in Gazette notice pursuant to s 57(2) of the Commerce Act | 3 June 2004 |
| Written submissions on Draft Report | 2 July 2004 |
| Conference on Draft Report | 22-28 July 2004 |
| Cross submissions following conference | 13 August 2004 |
| Tax Treatment Draft Paper released by Commission | 8 September 2004 |
| Written submissions on Tax Treatment Draft Paper | 23 September 2004 |
| Draft cost benefit model numbers released by Commission | 2 November 2004 |
| Written submissions on draft cost benefit model numbers | 5 November 2004 |
| Final Report provided to Minister of Energy | 29 November 2004 |
7. Background issues are discussed in more detail in Chapter 1 (Background).
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