Short- term

Workshops

Retail Competition Workshop - April 2011

Some submissions on Gas Industry Co's November 2010 Retail Competition and Transmission Capacity: Statement of Proposal expressed a strong preference for a non-regulated approach to improving competition in the retail market supplied by Vector's North Pipeline.

On 14 April Gas Industry Co held a workshop to explore ways to improve competition without regulation.

Background material:

Retail Competition and Transmission Capacity Statement of Proposal: Submissions Analysis and Next Steps

Draft Gas Governance (Constrained Transmission Pipeline) Rules

Agenda:

Agenda for 14 April Retail Competition Workshop

Workshop presentations:

Gas Industry Co presentation

Creative Energy presentation

Feedback following the Workshop:

Mighty River Power

Capacity Workshop - September 2010

On 15 September 2010 Gas Industry Co held a workshop with a small group of participants to consider design options for addressing the current competition issue.

The agenda and presentation from the workshop are available below

15 September Vector Capacity Workshop Agenda

Gas Industry Co Introductory Presentation

Creative Energy Presentation on Evaluation Objectives and Options

Gas Industry Co Presentation on Next Steps

Note on Capacity Meeting and additional Gas Industry Co Work

Capacity Questions for participants

Gas Industry Co invited feedback on several questions regarding several points discussed at the workshop. The questions and a summary of the responses to those questions are available below:

Capacity questions for participants

Summary of participants responses to Gas Industry Co questions

Consultation

Retail Competition and Transmission Capacity Statement of Proposal: Submissions Analysis and Next Steps

In this paper Gas Industry Co presents an analysis of submissions on the Retail Competition and Transmission Capacity Statement of Proposal released for consultation in November 2010.
This paper also presents further analysis of the extent of the reduction in competition and the associated economic costs. Submitters on the Statement of Proposal thought these were matters requiring more evidence and we therefore obtained an independent assessment of them. This assessment was completed by Covec Limited and is included in Appendix A of the paper.

Feedback

Although we do not ask for formal submissions on this paper, we welcome any feedback. Feedback should be emailed to Ian Wilson, Principal Adviser, Infrastructure Access Group at ian [dot] wilsonatgasindustry [dot] co [dot] nz

Retail Competition and Transmission Capacity: Statement of Proposal

Date Published: 12 November 2010

In the paper Retail Competition and Transmission Capacity: Statement of Proposal, Gas Industry Co proposes introducing the Gas Governance (Constrained Transmission Pipeline) Rules.

The Rules are Gas Industry Co's preferred option for ensuring there are no unintended effects on competition arising from a TSO's commercial arrangements for transporting gas on constrained transmission pipeline.

The Bridge Commitments

Following the April Retail Competition workshop, key members of the gas industry have put in place a package of measures to address the short-term issues large end users on the constrained North Pipeline are facing. The 'Bridge Commitments' comprise seven commitments. Notably each signatory supplier has agreed that, where it supplies an end user, and that end user tenders its gas supply, it will make pipeline capacity available to competing suppliers.

Gas Industry Co has assessed the Bridge Commitments and considers that they should:

· ensure existing large end users on the constrained North Pipeline have an effective choice of supplier in the short term;

· help to facilitate development of longer term access arrangements and investment; and

· materially change the market.

As a result of these conclusions, Gas Industry Co has determined that intervention by way of Rules is not justified at this time.

Gas Industry Co will continuously monitor the effectiveness of the Bridge Commitments and update industry if anything occurs that may change its assessment.

In the mean time Gas Industry Co will continue to work with the industry on the Gas Transmission Investment Programme. For more information on this work please refer to the 'Long-term' tab.

The Bridge Commitments can be found here: The Bridge Commitments

Gas Industry Co's detailed assessment of the Bridge Commitments in the context of our short-term capacity work can be found here:

Update on the Retail Competition and Transmission Capacity Workstream

Gas Industry Co's news release on this work can be found here: News release

Vector Update

Vector Limited recently sent a letter to Shippers updating them on progress made under the Bridge Commitments.

A copy of the letter can be found here: Vector letter to Shippers

Gas Industry Co Progress Report

Gas Industry Co's first progress report on the Bridge Commitments is available below

Bridge Commitments: Progress Report May 2012

Bridge Commitments: Progress Report Feb 2012