OPERATIONS

Industry fears Hodgson's heavy hand

New Zealand's Gas Industry Steering Group met in Wellington yesterday amid growing concerns about...

Industry fears Hodgson's heavy hand

Energy Minister Pete Hodgson is reported to be considering similar moves to control the gas industry as he used earlier this year with electricity companies after they failed to agree on a self-regulating structure - he then set up a government-appointed board to oversee it.

Last week the industry was given a draft version of laws that the government says are only to be used if the industry cannot regulate itself. However, some executives have said this proposed legislation is rather draconian and they have criticised the lack of time allowed for industry comment - only a week.

They say the planned gas legislation is unnecessary and should not be introduced merely because of failures in the electricity industry.

Hodgson's raft of measures includes possible price control and Commerce Commission investigation of gas pipeline owners, primarily NGC, and the monopoly rents charged for access to transmission networks.

The energy industry fears overbearing legislation could scare off overseas investors at a time when further gas exploration, production and pipeline development is urgently need as New Zealand enters its post-Maui age.

Government plans for the reform and possible regulation of the gas sector were first signalled last November and drew an initial mixed and muted industry response.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry