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.