This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 July 2016, impose levies on gas industry participants for the 2016/17 financial year. The levies fund the costs of the Gas Industry Company Limited (GIC) in performing functions and duties and exercising powers, including the cost of collecting the levies. GIC is the approved industry body under the Gas Act 1992.
The 2016/17 levies are—
a wholesale gas levy of 1.15 cents for every gigajoule of gas purchased from gas producers, calculated monthly on the basis of the buyer’s purchases in the previous month and payable monthly. The levy is not payable on gas supplied from gas producers who have purchased the gas from other gas producers. This year’s levy rate is an increase from the rate of 1.12 cents per gigajoule that applied in the 2015/16 financial year:
a retail gas levy of 57.67 cents per month (which is the annual levy rate of $6.92 divided by 12) for each installation control point to which the retailer has a contract to supply gas (as recorded on the registry under the Gas (Switching Arrangements) Rules 2008) as at the last day of the previous month. This year’s levy rate is a decrease from the rate of 58.08 cents per month that applied in the 2015/16 financial year.
The levies are exclusive of goods and services tax.
The regulations also require industry participants to keep until 30 June 2018 all of the information that is necessary for the purpose of establishing the correct amount of the wholesale levy payable, and to supply that information to GIC on request.
Regulatory impact statement
The Ministry of Business, Innovation, and Employment produced a regulatory impact statement on 13 April 2016 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this regulatory impact statement can be found at—
Date of notification in Gazette: 19 May 2016.
These regulations are administered by the Ministry of Business, Innovation, and Employment.