Gas regulatory framework
The gas market is governed by regulations and rules jointly developed by the Gas Industry Company and the government.
GIC's governance role
The Gas Industry Company (GIC) develops regulated or non-regulated governance arrangements consistent with the Government's objectives as set out in the Gas Act 1992 and the Government Policy Statement on Gas Governance 2008 (GPS).
Government Policy Statement of Gas Governance 2008 [PDF, 35 KB]
Proposed industry arrangements are then submitted to the Minister of Energy and Resources for approval.
Recommendations made by the GIC cover:
- the operation and governance of gas markets
- access to infrastructure
- consumer outcomes.
A range of rules, regulations and non-regulated arrangements are in place for the downstream gas sector. The main ones are:
- Gas (Levy of Industry Participants) Regulations 2021
- Gas (Downstream Reconciliation) Rules 2008
- Gas (Switching Arrangements) Rules 2008
- Gas Governance (Compliance) Regulations 2008
- Gas Governance (Critical Contingency Management) Regulations 2008
- Gas (Dispute Resolution Scheme Membership) Class Exemption Regulations
- Retail Gas Contracts Oversight Scheme
- Gas Distribution Contracts Oversight Scheme
- Gas (Processing Facilities Information Disclosure) Rules 2008
Gas (Levy of Industry Participants) Regulations 2021
These regulations are part of an annual process conducted to help fund the majority of the GIC’s activities.
Further information about the process on the Gas Industry website(external link)
Read the 2021-22 regulatory impact statement about these regulations [PDF, 126 KB]
Read the full regulations on the New Zealand Legislation website(external link)
Gas (Downstream Reconciliation) Rules 2008
These rules establish a set of uniform processes to enable the fair, efficient, and reliable allocation and reconciliation of downstream gas quantities. The rules allow for an allocation agent to:
- gather information about gas injection and consumption
- allocate daily gas quantities to retailers at gas gates
- reconcile downstream gas quantities.
Further information on the rules on the Gas Industry Company website(external link)
Gas (Switching Arrangements) Rules 2008
These rules enable consumers to efficiently switch between competing retailers. A central gas register means that consumer information can be exchanged between retailers.
Further information on the rules on the Gas Industry Company Limited website(external link)
Gas Governance (Compliance) Regulations 2008
These regulations allow the following rules and regulations to be monitored and enforced:
- Gas (Switching Arrangements) Rules 2008
- Gas (Processing Facilities Information Disclosure) Rules 2008 (expired in June 2014)
- Gas (Downstream Reconciliation) Rules 2008
- Gas Governance (Critical Contingency Management) Regulations 2008.
Read the full regulations on the New Zealand Legislation website(external link)
Further information on the regulations on the Gas Industry Company Limited website(external link)
Gas Governance (Critical Contingency Management) Regulations 2008
These regulations set out the process for the industry to manage a gas supply emergency. They include the roles, responsibilities and obligations of certain parties before, during and after a critical event. A critical contingency operator is appointed under the regulations to determine, manage and terminate critical contingency event.
Read the full regulations on the New Zealand Legislation website(external link)
Further information on the regulations on the Gas Industry Company Limited website(external link)
Gas (Dispute Resolution Scheme Membership) Class Exemption Regulations 2014
These regulations exempt gas retailers from the obligation to be a member of the Electricity and Gas Complaints Commissioner (EGCC) Scheme in relation to the supply of liquefied petroleum gas (LPG) in, or directly into, cylinders, and in quantities less than 15 kilograms.
The EGCC is an effective, free and independent complaints resolution scheme available to gas consumers.
Further information on the EGCC(external link)
Read the full regulations on the New Zealand Legislation website(external link)
Retail Gas Contracts Oversight Scheme
Introduced in 2010, this scheme is a non-regulated arrangement designed to ensure that retailers’ supply arrangements with small consumers adequately protect the long-term interests of those consumers.
Gas Distribution Contracts Oversight Scheme
The objectives of this non-regulated scheme, introduced in 2012, are to ensure that core terms and conditions of distribution services agreements are clear, reasonable, promote market efficiency and enhance consumer outcomes.
Gas (Processing Facilities Information Disclosure) Rules 2008
These rules expired on 27 June 2014 and are inactive. They required gas processing facility owners to publish prescribed information about their facilities’ capability and capacity.