NEW ZEALAND

Disclosure and regulation themes for NZ power

New Zealand energy companies will soon have to disclose more information about their oil and gas ...

That is the general thrust of the Electricity and Gas Industries Bill currently before Parliament, which Energy Minister Pete Hodgson last night urged be passed without delay, given the critical nature of the sectors for New Zealand's continued economic growth.

The bill amends the Crown Minerals Act to require more extensive disclosure of information relating to gas and oil reserves, which in turn will enable improved investment decisions and enhanced security of electricity supply.

The bill also provides for "back-stop" legislation for governing the gas industry should it fail, as the electricity sector did, to reach agreement on self-governance.

"It is important that back-stop legislation is in place should it be needed," Hodgson warned, though he said the regulations were more of an incentive to reach voluntary agreements rather than a threat.

"The government expects the Electricity Commission, and the Energy Commission if it is formed, to use persuasion, promotion and the provision of information and model arrangements to achieve policy objectives wherever possible."

Hodgson said the bill reflected the government's objective to ensure electricity was delivered in an efficient, fair, reliable and environmentally sustainable manner. It also reflected the government's stance on energy efficiency, conservation and renewables.

He added that the new legislation sought to apply a consistent regulatory framework to the electricity and gas sectors, reflecting the linkages between them. However, its regulatory powers with respect to the gas industry might be "further refined" in parallel with the industry's own efforts at self-governance, he cautioned.

"This Bill sets the legal framework for the next phase in the development of New Zealand's electricity and gas industries. The government looks forward to working further with the electricity and gas industries and consumer groups to ensure we meet the challenges of a sustainable energy future," Hodgson concluded.

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