Control of Gas Pipeline Services - Minister Briefing

[ Last Updated 28 November 2005 ]

Short Description Resulting from concerns that gas pipeline businesses may be taking advantage of their monopolies, in 2003 the Minister of Energy requested the Commerce Commission to recommend whether or not those services should be controlled under the Commerce Act.

Author David Smol, Deputy Secretary, Resources and Networks Branch

To: Trevor Mallard
Minister of Energy

Document Table of Contents

Executive Summary
Advice Framework
Targeted (Thresholds) Control Regime for Gas
Overall Recommendations/Conclusions
Recommended Action
Purpose of Report
Background
Consideration of the Commerce Commission's Recommendations
Overall Conclusion/Recommendation
Other Issues
List of Attachments
Recommended Action
Attachment A: Company Specific Results
Attachment B: MED Summary of Final Submissions, Including Modelling Assumptions
Attachment C: Commerce Commission Advice - Benefits of a Targeted Control Regime
Attachment D: Commerce Commission Advice - New Issues Raised Final Submissions
Attachment E: Commerce Commission Advice - Vector Acquisition of a Controlling Interest in NGC
Attachment F: Provisions of the Commerce Act Relating to the Order in Council

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List of Tables

Table 1: Commerce Commission Inquiry Process
Table 2: Ratio of Efficiency Cost to Recoverable Excess Returns
Table 3: Regulatory Options
Table 4: Average Annual Pipeline Charges and Total Charges Per Customer
Table 5: Company Specific Revenue, Earnings and Consumer Benefits
Table 6: Percentage Reduction in Revenue and Price
Table 7: Return on Capital Relative to WACC
Table 8: Net Public Benefits of Control
Table 9: List of Attachments
Attachment A: Table 1: Powerco Financials
Attachment A: Table 2: Vector Financials
Attachment A: Table 3: NGCT Financials
Attachment A: Table 4: NGCD Financials
Attachment A: Table 5: Wanganui Financials
Attachment A: Table 6: MDL Financials
Attachment B: Table 7: Submitters
Attachment B: Table 8: Overall Position
Attachment B: Table 9: Arguments Against Control
Attachment B: Table 10: Commerce Commission Assumptions

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Printed: 24/11/2009