Compliance Policy
Introduction
The April 2008 Government Policy Statement on Gas Governance (GPS) seeks as an outcome that gas governance arrangements are supported by appropriate compliance and dispute resolution processes. Gas Industry Co recommended to the Minister of Energy that the Governor-General make regulations to provide for the enforcement of the gas governance rules and regulations recommended by Gas Industry Co.
Overview
Summary of Status
The Gas Governance (Compliance) Regulations 2008 (the 'Compliance Regulations') came into effect on 11 September 2008. The purpose of the Compliance Regulations is to provide for the monitoring and enforcement of the following gas governance arrangements:
- the Gas (Switching Arrangements) Rules 2008
- the Gas (Processing Facilities Information Disclosure) Rules 2008
- the Gas (Downstream Reconciliation) Rules 2008
- the Gas Governance (Critical Contingency Management) Regulations 2008.
Consultation
Previously Consulted On
Proposed Amendments to Rulings Panel Summary of Procedures
The Gas Governance (Compliance) Regulations 2008 (the Compliance Regulations) were published in the New Zealand Gazette by the Minister of Energy on 14 August 2008 and came into effect on 11 September 2008. The purpose of the Compliance Regulations is to provide for the monitoring and enforcement of the following rules: Gas (Switching Arrangements) Rules 2008; Gas (Processing Facilities Information Disclosure) Rules 2008; Gas (Downstream Reconciliation) Rules 2008; and Gas Governance (Critical Contingency Management) Regulations 2008 (collectively, the 'Rules').
A situation recently arose where there was a lack of clarity regarding process once a matter has been referred to the Rulings Panel for determination. The Rulings Panel has proposed a minor amendment to its summary of procedures in response. The proposed addition to the Rulings Panel summary of procedures will insert a new paragraph 7 to read:
"Once the Rulings Panel has decided to determine an alleged breach under regulation 36(c) or the Investigator refers an alleged breach to the Rulings Panel under regulation 37, the procedures listed below apply in determining the alleged breach. If exceptional circumstances arise in relation to an alleged breach that suggest a hearing should not go ahead or should be deferred, such circumstances must be brought to the attention of the Rulings Panel, with full details of the circumstances. The Rulings Panel may then, at its sole discretion as permitted by legislation, amend its processes in respect of that alleged breach."
Gas Industry Co is currently consulting on the proposed amendment to the Rulings Panel summary of procedures. Gas Industry Co invites submissions from stakeholders on the proposed procedures. Submissions are due by Wednesday, 7 April 2010.
Submissions received
Proposed guidelines for the management of proposed changes to gas governance rules and regulations
It is anticipated that changes will, from time to time, be proposed to the five sets of gas governance rules and regulations that are now in effect. To ensure that proposed changes are processed efficiently and effectively, it is intended to set rule change guidelines in place.
Submissions received
Summary of procedures: Gas Governance (Compliance) Regulations 2008
Author: Nicole MacFarlane
The Gas Governance (Compliance) Regulations 2008 (the 'Compliance Regulations') were published in the New Zealand Gazette by the Minister of Energy on 14 August 2008 and came into effect on 11 September 2008.
The purpose of the Compliance Regulations is to provide for the monitoring and enforcement of the following rules: Gas (Switching Arrangements) Rules 2008; Gas (Processing Facilities Information Disclosure) Rules 2008; and Gas (Downstream Reconciliation) Rules 2008 (collectively, the 'Rules').
Gas Industry Co has consulted on the procedures for the market administrator, investigator and Rulings Panel appointed under the Compliance Regulations.
Submissions received
Options for Compliance and Enforcement Arrangements in the New Zealand Gas Industry
The consultation paper sought input from stakeholders on the preferred model for a compliance and enforcement regime to support the proposed switching and registry rules and other industry arrangements developed by the Gas Industry Co.
Submissions received
Statement of Proposal and Recommendation
Compliance arrangements for the Gas Governance (Critical Contingency Management) Regulations 2008
Recommendation to the Minister of Energy on Critical Contingency Amendments to Gas Compliance Regulations
Date Published: 30 June 2008 Author: Ian Dempster, Tristan Meo and Ben Farrington and Lee Wilson (Concept Consulting Group)
On 30 June 2008, Gas Industry Co recommended regulations providing for the effective management of critical gas contingencies, called the Gas Governance (Critical Contingency Management) Regulations (the 'proposed Regulations'). The proposed Regulations include mandatory processes for the management of critical contingencies, including compliance with curtailment instructions. An effective compliance regime is crucial to ensuring that the proposed Regulations achieve their purpose. Accordingly, Gas Industry Co recommended that the proposed Gas Governance (Compliance) Regulations 2008 be amended as set out in Appendix A of this recommendation.
Statement of Proposal: Gas Outage and Contingency Management Arrangements
Date Published: August 2007 Authors: Ian Dempster & Nicole MacFarlane with support from Lee Wilson, Ben Farrington & Joanne Robinson
Industry members requested Gas Industry Co to develop mandatory arrangements to replace the voluntary National Gas Outage Contingency Plan (NGOCP). This Statement of Proposal puts forward replacement arrangements that are a combination of regulations under the Gas Act and industry-developed arrangements to meet the requirements of those regulations and also addresses potential consequential amendments to the proposed compliance regulations
Statement of Proposal - Gas Outage and Contingency Management Arrangements
Draft Gas (Compliance) Regulations 2008 (as at August 07)
Submissions received:
Compliance arrangements for the Gas (Downstream Reconciliation) Rules 2008
Recommendation to the Minister of Energy on Downstream Reconciliation Amendments to Gas Compliance Regulations
Date Published: 12 March 2008 Author: Tristan Meo
On 12 March 2008, Gas Industry Co made a recommendation to the Minister of Energy for amendments to the Gas Governance (Compliance) Regulations 2008 for compliance with, and enforcement of, the rules relating to the allocation and reconciliation of downstream gas quantities. Text of this recommendation, including the assessment under section 43N of the Act, is available below.
Statement of Proposal: Allocation and Reconciliation of Downstream Gas Quantities
Date Published: 4 September 2007 Author: Mark Soper and Nicole MacFarlane
Efficient arrangements for the accurate allocation and reconciliation of gas quantities are a key component of an efficient gas market. In response to:
- the Government's desire in the 2004 Government Policy Statement on Gas Governance for, amongst other things, the development of protocols and standards applying to balancing and reconciliation; and
- requests by industry participants;
Gas Industry Co has developed a proposal to recommend to the Minister of Energy rules for allocation and reconciliation of downstream gas quantities, and consequential amendments to the proposed compliance regulations.
Statement of Proposal - Allocation and Reconciliation of Downstream Gas Quantities
Draft Gas (Compliance) Regulations (as at September 07)
Submissions received:
Compliance arrangements for the Gas (Processing Facilities Information Disclosure) Rules 2008
Recommendation to the Minister of Energy on Gas Processing Facilities Amendments to Gas Compliance Regulations
Date Published: 28 January 2008 Author: Nicole MacFarlane
On 28 January 2008, Gas Industry Co made a recommendation for amendments to the Gas Governance (Compliance) Regulations 2008 for enforcement of rules requiring information disclosure by gas processing facility owners. The text of this recommendation, including the assessment under section 43N of the Act, is available below.
Statement of Proposal: Information Disclosure by Owners of Gas Processing Facilities
Date Published: 3 September 2007 Author: Ian Dempster, Nicole MacFarlane and Jim Truesdale (Concept Consulting Group)
Gas Industry Co has developed a statement of proposal in respect of information disclosure by owners of gas processing facilities. This proposal follows from the December 2006 recommendation to the Minister of Energy relating to protocols for access to gas processing facilities. That recommendation, subsequently approved by the Minister, suggested pursuing an industry arrangement for information disclosure, with a fall-back to a regulated option if the industry arrangement proved infeasible. As progress on the industry arrangement has stalled, Gas Industry Co has had to resort to preparing a proposal to regulate including consequential amendments to the proposed compliance regulations.
Statement of Proposal - Information Disclosure by Owners of Gas Processing Facilities
Compliance arrangements for the Gas (Switching Arrangements) Rules 2008
Recommendation to the Minister of Energy on Gas Compliance Regulations for Enforcement of Switching Arrangements
Date Published: 31 May 2007 Author: Nicole MacFarlane and Gael Webster
On 31 May 2007, Gas Industry Co made two recommendations in respect of arrangements for consumers switching between retailers and an associated compliance regime. In the associated compliance recommendation, Gas Industry Co proposed that the proposed Gas (Switching Arrangements) Rules be monitored and enforced by a Rulings Panel via a set of compliance regulations. The regulations provided for the powers and procedures of that Rulings Panel. The recommendation, including the assessment under section 43N of the Act, is available below:
Recommendation to the Minister of Energy on Regulations for Enforcement of Switching Arrangements
Statement of Proposal: Switching Arrangements for the New Zealand Gas Industry - Part 2: Compliance and Enforcement
Date Published: 31 August 2006 Author: Paul Mitchell
The statement of proposal is for compliance and enforcement arrangements to support the proposed switching arrangements for retail gas customers in New Zealand.
Statement of Proposal - Compliance and Enforcement Arrangements
Draft Regulations - Compliance and Enforcement Arrangements
Submissions received: