Regulations under a Fuel Industry Bill and other matters

Days left

24
open
Submissions due: 25 April 2020, 5pm

Submissions are now invited on proposed regulations under the Fuel Industry Bill, and on options for a regulatory backstop to be added to legislation in future.

Summary

On 27 February 2020, Government announced its response to the Commerce Commission fuel market study. Government will be introducing changes through a Fuel Industry Bill to promote greater competition in the wholesale and retail fuel markets including:

  • a more transparent wholesale pricing regime requiring fuel suppliers to publicly post the prices they sell to wholesale customers at storage terminals;
  • rules to ensure contracts between wholesale fuel suppliers and their customers are fair and support competition;
  • providing a dispute resolution scheme for the new regime; and
  • requiring retail fuel sites to display premium fuel prices on forecourt price boards.

Now that Government has made its response, we seek feedback from interested parties on the content of the regulations that will contain important details of the new regime. The consultation document provides information and seeks feedback on a range of questions for development of regulations including feedback on:

  • The details of new requirements for a transparent wholesale pricing regime, such as the fuel products covered, the obligations on suppliers for setting and posting prices, and for supplying fuel.
  • The details of rules to ensure contracts between wholesale fuel suppliers and their customers are fair and support competition, such as what the maximum length of contract term between suppliers and wholesale customers should be and how much of a wholesale customer’s fuel requirements can be exclusively tied to one supplier.
  • Dispute resolution process arrangements for wholesale market disputes.
  • Specific requirements for fuel suppliers to display premium prices on forecourt price boards.
  • The types of information that industry participants may be required to collect and disclose to monitor the impact of changes.

Additionally, feedback is sought on options for a backstop regulatory regime that will be included in legislation at a later stage. The document seeks feedback on questions including what the threshold and process for triggering a backstop should be, and how price regulation could apply under a backstop.

We are seeking feedback:

  • On issues relating to the development of regulations by 5pm, 25 April 2020
  • On issues specifically relating to a regulatory backstop by 5pm, Friday 15 May 2020.

 

How to make a submission

Please use the submission template.

This will help us to collate submissions and ensure that your views are fully considered. Please also include your name and (if applicable) the name of your organisation in your submission.

Please include your contact details in the cover letter or e-mail accompanying your submission.

You can make your submission by:

  • sending your submission as a Microsoft Word document to energymarkets@mbie.govt.nz.
  • mailing your submission to:
    Energy Markets Policy
    Building, Resources and Markets
    Ministry of Business, Innovation & Employment
    PO Box 1473
    Wellington 6140
    New Zealand

Please direct any questions that you have in relation to the submissions process to energymarkets@mbie.govt.nz.

Use of information

The information provided in submissions will be used to inform MBIE’s policy development process, and will inform advice to Ministers on regulating the New Zealand fuel market in response to the Commerce Commission’s Retail Fuel Market Study. We may contact submitters directly if we require clarification of any matters in submissions.

Release of information

We intend to upload PDF copies of submissions received to our website www.mbie.govt.nz. We will consider you to have consented to uploading by making a submission, unless you clearly specify otherwise in your submission.

If your submission contains any information that is confidential or you otherwise wish us not to publish, please:

  • indicate this on the front of the submission, with any confidential information clearly marked within the text
  • provide a separate version excluding the relevant information for publication on our website.

Submissions remain subject to request under the Official Information Act 1982. Please set out clearly in the cover letter or e-mail accompanying your submission if you have any objection to the release of any information in the submission, and in particular, which parts you consider should be withheld, together with the reasons for withholding the information. MBIE will take such objections into account and will consult with submitters when responding to requests under the Official Information Act 1982.

Private information

The Privacy Act 1993 establishes certain principles with respect to the collection, use and disclosure of information about individuals by various agencies, including MBIE. Any personal information you supply to MBIE in the course of making a submission will only be used for the purpose of assisting in the development of policy advice in relation to this review. Please clearly indicate in the cover letter or e-mail accompanying your submission if you do not wish your name, or any other personal information, to be included in any summary of submissions that MBIE may publish.