APPROPRIATION MINISTER(S): Minister of Energy and Resources (M28)
APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment
RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development
Summary of the Vote#
Overview#
Part 1 - Summary of the Vote#
The Minister of Energy and Resources is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:
- a total of under $28 million for policy advice on the operation and information disclosure of energy resource markets, services to support the Minister, monitoring the performance and compliance of Crown entities, the management of the Crown mineral estate, and the administration of the gas and electrical safety regime, which is an industry levy funded activity
- a total of over $83 million for non-departmental output expenses
- a total of over $33 million for non-departmental other expenses
- a total of $2 million for non-departmental capital expenditure, and
- a total of over $34 million for multi-category expenses.
The Ministry expects to collect just under $486 million of Tax and Non-Tax revenue in 2014/15:
- a total of just under $356 million from petroleum and other Crown mineral royalties
- a total of just under $93 million in levies from the Electricity Industry
- a total of just under $36 million from coal and gas energy resource levies, and
- a total of $2 million from repayment of energy efficiency loans.
Details of these appropriations are set out in Parts 2-4.
Estimates of Appropriations#
Details of Appropriations and Capital Injections#
Annual and Permanent Appropriations
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Departmental Output Expenses | |||
Administration of Fuel Quality Monitoring Programme (M28)This appropriation is limited to ensuring New Zealand's retail fuel supply meets the Engine Fuel Specification regulations. | - | - | 1,007 |
Energy and Resource Information Services (M28)Provision of information and technical advice on energy and resources, the management of the response to any international disruption in oil supplies, and the management of New Zealand's energy-related international relations. | 1,267 | 1,267 | 1,019 |
Energy and Resource Information Services RDA (M28)Provision of information and technical advice on energy and resources, the management of the response to any international disruption in oil supplies, and the management of New Zealand's energy-related international relations. | 1,827 | 1,827 | 1,827 |
Energy and Resources Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M28)This appropriation is limited to the development of operational policies in relation to the operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and natural related resources) and energy efficiency and conservation issues, services to support the Minister, and monitoring the performance and compliance of Crown Entities. | 1,492 | 1,492 | 1,476 |
Management of the Crown Mineral Estate (M28)Allocation and management of Crown-owned petroleum, coal and mineral resources under the Crown Minerals Act 1991 and minerals programmes issued under the Act. | 18,103 | 18,103 | 17,458 |
Policy Advice - Energy and Resource Issues (M28)This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters. | 3,815 | 3,815 | 4,811 |
Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts (M28)This appropriation is limited to the purchase of advice on administration and associated policy work, Ministerial servicing and decision support for the Minister in relation to, and the administration of the regimes for: gas and electricity safety; energy efficiency and conservation; the supply, quality and measurement of gas and electricity; and fuel quality monitoring. | 2,988 | 2,988 | - |
Total Departmental Output Expenses | 29,492 | 29,492 | 27,598 |
Non-Departmental Output Expenses | |||
Electricity Industry Governance and Market Operations (M28)This appropriation is limited to formulating, monitoring and enforcing compliance with the regulations and rules governing the electricity industry and other outputs in accordance with the statutory functions under the Electricity Industry Act; and delivery of core electricity system and market operation functions, carried out under service provider contracts. | 68,145 | 68,145 | 73,399 |
Implementation of the Home Insulation Programme (M28)This appropriation is limited to the implementation of the Home Insulation programme. | 2,000 | 2,000 | 2,500 |
Management of IEA Oil Stocks (M28)For the cost of managing and funding of oil stocks to meet International Energy Agency obligations. | 6,333 | 5,802 | 6,697 |
Energy Efficiency and Conservation MCOA (M28) | 30,904 | 30,904 | - |
Electricity EfficiencyThis output class is limited to:- conducting electricity efficiency research, and - development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours. | 13,000 | 13,000 | - |
Energy Efficiency and ConservationThis output class is limited to operational and policy outputs in accordance with statutory functions under the Energy Efficiency and Conservation Act 2000 and the government's energy strategies. | 17,904 | 17,904 | - |
Total Non-Departmental Output Expenses |
107,382 | 106,851 | 82,596 |
Non-Departmental Other Expenses | |||
Electricity Litigation Fund (M28)This appropriation is limited to ensuring that the regulatory body for the electricity industry is able to participate in litigation effectively and without delay. | 444 | 444 | 444 |
International Energy Agency Contribution (M28)Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency. | 150 | 150 | 150 |
International Energy Agency Subscription (M28)Payment of annual subscription for membership of the International Energy Agency. | 170 | 170 | 170 |
Ministry of Energy Residual Liabilities (M28)Payment of residual liabilities of the former Ministry of Energy and to meet urgent mine restoration and rehabilitation relating to the operations of the state coal mines prior to 1987. | 199 | 199 | 199 |
Crown Contribution to Pike River Recovery and Related Matters (M28)This appropriation is limited to providing a Crown contribution towards the potential recovery of bodies in the Pike River Coal Mine and related matters. | 7,500 | 5,500 | - |
Energy Efficiency and Renewable Energy Grants and Assistance (M28)This appropriation is limited to the Crown's contribution to fund improvements to the energy efficiency of New Zealand businesses and homes and increased use of renewable energy. | 680 | 680 | - |
Total Non-Departmental Other Expenses |
9,143 | 7,143 | 963 |
Non-Departmental Capital Expenditure | |||
Crown Energy Efficiency (M28)This capital expenditure appropriation is limited to provision of funding for the Crown loans scheme to assist public sector agencies in implementing energy efficiency projects. | 2,000 | 1,500 | 2,000 |
Total Non-Departmental Capital Expenditure | 2,000 | 1,500 | 2,000 |
Multi-Category Expenses and Capital Expenditure | |||
Energy Efficiency and Conservation MCA (M28)The overarching purpose of this appropriation is to provide research and policy advice in relation to energy efficiency and conservation and renewable energy. | - | - | 34,103 |
Non-Departmental Output Expenses | |||
Electricity EfficiencyThis category is limited to: - conducting electricity efficiency research, and - development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours. | - | - | 17,519 |
Energy Efficiency and ConservationThis category is limited to operational and policy outputs in accordance with statutory functions under the Energy Efficiency and Conservation Act 2000 and the government's energy strategies. | - | - | 16,584 |
Total Multi-Category Expenses and Capital Expenditure | - | - | 34,103 |
Total Annual and Permanent Appropriations |
148,017 | 144,986 | 147,260 |
Multi-Year Appropriations
| Type, Title, Scope and Period of Appropriations | Appropriation, Adjustments and Use | $000 |
|---|---|---|
Non-Departmental Output Expenses | ||
Acquisition of Petroleum Exploration Data (M28)This appropriation is limited to the acquisition of seismic information relating to New Zealands offshore petroleum basins. Commences: 01 July 2009 Expires: 30 June 2014 | Original Appropriation | 20,000 |
| Adjustments for 2012/13 | - | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 20,000 | |
| Actual to 2012/13 Year End | 16,687 | |
| Estimated Actual for 2013/14 | 3,313 | |
| Estimated Actual for 2014/15 | - | |
| Estimated Appropriation Remaining | - | |
Resource Data Acquisition and Management (M28)This appropriation is limited to the acquisition and analysis of seismic information relating to New Zealands minerals, petroleum and geothermal resources. Commences: 01 July 2014 Expires: 30 June 2018 | Original Appropriation | 8,000 |
| Adjustments for 2012/13 | - | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 8,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | - | |
| Estimated Actual for 2014/15 | 2,000 | |
| Estimated Appropriation Remaining | 6,000 | |
Security Management (M28)This appropriation is limited to the management of emergency events by the System Operator, if required, including increased monitoring and management responsibilities in the event of an emerging security situation, and planning and running an emergency conservation campaign. Commences: 01 July 2012 Expires: 30 June 2017 | Original Appropriation | 6,000 |
| Adjustments for 2012/13 | - | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 6,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | 2,400 | |
| Estimated Actual for 2014/15 | 1,200 | |
| Estimated Appropriation Remaining | 2,400 | |
Non-Departmental Other Expenses | ||
Contestable Fund for Deployment of Marine Energy Devices (M28)This appropriation is limited to a contestable fund for marine energy generation and associated administration. Commences: 01 July 2011 Expires: 30 June 2016 | Original Appropriation | 4,949 |
| Adjustments for 2012/13 | (2,852) | |
| Adjustments to 2013/14 | (1,148) | |
| Adjusted Appropriation | 949 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | - | |
| Estimated Actual for 2014/15 | - | |
| Estimated Appropriation Remaining | 949 | |
Home Insulation (M28)This appropriation is limited to grants towards insulation targeting low income households. Commences: 01 July 2013 Expires: 30 June 2016 | Original Appropriation | 93,000 |
| Adjustments for 2012/13 | - | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 93,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | 33,000 | |
| Estimated Actual for 2014/15 | 32,500 | |
| Estimated Appropriation Remaining | 27,500 | |
Promoting and Facilitating Customer Switching (M28)This appropriation is limited to facilitating, and promoting increased switching of electricity suppliers to consumers. Commences: 01 November 2010 Expires: 30 April 2014 | Original Appropriation | 10,500 |
| Adjustments for 2012/13 | - | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 10,500 | |
| Actual to 2012/13 Year End | 8,269 | |
| Estimated Actual for 2013/14 | 2,231 | |
| Estimated Actual for 2014/15 | - | |
| Estimated Appropriation Remaining | - | |
Warm Up New Zealand (M28)This appropriation is limited to grants towards insulation and clean heating devices to make New Zealand homes healthier and more energy efficient. Commences: 01 January 2010 Expires: 30 June 2014 | Original Appropriation | 244,950 |
| Adjustments for 2012/13 | 30,118 | |
| Adjustments to 2013/14 | - | |
| Adjusted Appropriation | 275,068 | |
| Actual to 2012/13 Year End | 259,200 | |
| Estimated Actual for 2013/14 | 15,868 | |
| Estimated Actual for 2014/15 | - | |
| Estimated Appropriation Remaining | - |
Supporting Information#
Part 1 - Vote as a Whole#
1.1 - New Policy Initiatives
New Policy Initiatives
| Policy Initiative | Appropriation | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Electricity Authority: 3 Year Customer Switching Fund | Electricity Industry Governance and Market Operations | - | 2,500 | 2,500 | 2,500 | - |
| Establishment of the Resource Data Acquisition and Management programme | Resource Data Acquisition and Management programme | - | 2,000 | 2,000 | 2,000 | 2,000 |
| Savings as a result of the formation of the Ministry of Business, Innovation and Employment | Departmental Output Expense | |||||
| Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts | - | (59) | (59) | (59) | (59) | |
| Energy and Resource Information Services | - | (48) | (48) | (48) | (48) | |
| Energy and Resources Operational Policy, Ministerial Servicing and Crown Entity Monitoring | - | (16) | (16) | (16) | (16) | |
| Management of the Crown Mineral Estate | - | (285) | (285) | (285) | (285) | |
| Policy Advice - Energy and Resource Issues | - | (74) | (74) | (74) | (74) | |
| Total Policy Initiatives | - | 4,018 | 4,018 | 4,018 | 1,518 |
1.2 - Trends in the Vote#
Summary of Financial Activity#
| 2009/10 | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual $000 | Actual $000 | Actual $000 | Actual $000 | Budgeted $000 | Estimated Actual $000 | Departmental Transactions Budget $000 | Non- Departmental Transactions Budget $000 | Total Budget $000 | Estimated $000 | Estimated $000 | Estimated $000 | |
Appropriations | ||||||||||||
| Output Expenses | 137,785 | 124,080 | 109,554 | 95,926 | 113,083 | 111,152 | 27,598 | 85,796 | 113,394 | 118,430 | 109,835 | 106,135 |
| Benefits or Related Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Expenses | 110,151 | 71,971 | 91,165 | 82,748 | 60,242 | 58,242 | - | 33,463 | 33,463 | 29,412 | 963 | 963 |
| Capital Expenditure | 2,030 | 11,011 | 1,922 | 1,329 | 2,000 | 1,500 | - | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | ||||||||||||
Output Expenses | 37,942 | 38,945 | 37,982 | 37,344 | 30,904 | 30,904 | - | 34,103 | 34,103 | 34,103 | 34,103 | 34,103 |
Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Appropriations | 287,908 | 246,007 | 240,623 | 217,347 | 206,229 | 201,798 | 27,598 | 155,362 | 182,960 | 183,945 | 146,901 | 143,201 |
Crown Revenue and Capital Receipts | ||||||||||||
| Tax Revenue | 39,192 | 35,708 | 36,363 | 34,486 | 35,874 | 35,874 | N/A | 35,874 | 35,874 | 35,874 | 35,874 | 35,874 |
| Non-Tax Revenue | 537,554 | 473,706 | 456,757 | 468,024 | 420,482 | 420,482 | N/A | 448,955 | 448,955 | 452,030 | 450,393 | 447,893 |
| Capital Receipts | 1,784 | 1,831 | 34,906 | 1,893 | 2,000 | 2,000 | N/A | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
Total Crown Revenue and Capital Receipts | 578,530 | 511,245 | 528,026 | 504,403 | 458,356 | 458,356 | N/A | 486,829 | 486,829 | 489,904 | 488,267 | 485,767 |
Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered.
Adjustments to the Summary of Financial Activity Table due to Vote Restructuring#
| 2009/10 Adjustments $000 | 2010/11 Adjustments $000 | 2011/12 Adjustments $000 | 2012/13 Adjustments $000 | 2013/14 Budgeted Adjustments $000 | 2013/14 Estimated Actual Adjustments $000 | |
|---|---|---|---|---|---|---|
Appropriations | ||||||
| Output Expenses | (37,942) | (38,945) | (37,982) | (37,344) | (30,904) | (30,904) |
| Benefits or Related Expenses | - | - | - | - | - | - |
| Borrowing Expenses | - | - | - | - | - | - |
| Other Expenses | - | - | - | - | - | - |
| Capital Expenditure | - | - | - | - | - | - |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | ||||||
Output Expenses | 37,942 | 38,945 | 37,982 | 37,344 | 30,904 | 30,904 |
Other Expenses | - | - | - | - | - | - |
Capital Expenditure | - | - | - | - | - | - |
Total Appropriations | - | - | - | - | - | - |
Crown Revenue and Capital Receipts | ||||||
| Tax Revenue | - | - | - | - | - | - |
| Non-Tax Revenue | - | - | - | - | - | - |
| Capital Receipts | - | - | - | - | - | - |
Total Crown Revenue and Capital Receipts | - | - | - | - | - | - |
The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.
1.3 - Analysis of Significant Trends#
Output Expenses
The following are the key changes that are reflected in these trends:
- increases in the New Zealand Emissions Trading Scheme and register, from 2010/11 (introduced in 2007/08)
- the transfer of Emissions Trading Scheme and Climate Change Register functions to the Environmental Protection Authority in 2012/13, and
- funding for the Petroleum Action Plan for the New Zealand Petroleum and Minerals unit announced in 2010/11 increased funding from 2013/14.
Other Expenses
The following are the key changes that are reflected in these trends:
- a one off asset impairment technical adjustment of $38.659 million in 2009/10 to reflect the decision that the Crown will not continue to own the Whirinaki reserve generation electricity station (and related fuel)
- a grants fund was established for a three year period to support the production in New Zealand of biodiesel in 2009/10
- funding for the Petroleum Action Plan for the Crown Minerals unit was announced for 2010/11 and in outyears
- the establishment of a new appropriation relating to the Crown contribution relating to Pike River Coal Mine related matters in 2010/11 and 2011/12
- the decrease of funding for the Warm Up New Zealand MYA from 2011/12 to 2014/15 represents the spending profile which is scheduled to cease on 30 June 2015 (there is no further funding for the MYA)
- the sale of the Whirinaki Power Station and cessation of related operating costs as of 30 June 2012
- the introduction of the Housing Insulation and the Electricity Authority - System Operator Service Provider Agreement initiatives from 2013/14 to 2015/16, and
- the introduction of a three year programme in Budget 2013 for Home Insulation with $33 million for 2013/14, $32.500 million in 2014/15 and $27.500 million in 2015/16.
Capital Expenditure
The peak in 2010/11 relates to a one-off funding of capital to the Electricity Authority.
Multi-Category Expenses and Capital Expenditure
The trend is reasonably consistent with the exception of the decrease in 2013/14 which relates to the completion of the Warm Up New Zealand programme in June 2013 and savings from the Business Energy Efficiency programme.
1.4 - Reconciliation of Changes in Appropriation Structure#
| Old Structure | New Structure | |||||
|---|---|---|---|---|---|---|
| 2013/14 Appropriations in the 2013/14 Structure | 2013/14 (Current) $000 | Appropriations to which Expenses (or Capital Expenditure) have been Moved from or to | Amount Moved $000 | 2013/14 Appropriations in the 2014/15 Structure | 2013/14 (Restated) $000 | 2014/15 $000 |
Vote Energy | Vote Energy | |||||
Departmental Output Expense | Transferred to: | |||||
| Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts | 2,988 | Departmental Output ExpenseAdministration of Fuel Quality Monitoring Programme | (1,016) | |||
| Vote Labour Non-Departmental Output Expense Workplace Health and Safety | (1,972) | |||||
| From: Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts | 1,016 | Administration of Fuel Quality Monitoring Programme | 1,016 | 1,007 | ||
Vote Energy | ||||||
Non-Departmental Output Expense | ||||||
| Energy Efficiency and Conservation MCOA | 30,904 | Transferred from Energy Efficiency and Conservation MCOA | - | To Energy Efficiency and Conservation MCA | 30,904 | 34,103 |
| Total | 33,892 | (1,972) | 31,920 | 35,1110 | ||
The above changes reflect the implementation and restructure of Multi-Class Output appropriations (MCOAs) to Multi-Category appropriations (MCAs) as per the Public Finance Act amendments.
Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Administration of Fuel Quality Monitoring Programme (M28)
Scope of Appropriation
Expenses and Revenue
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | - | - | 1,007 |
| Revenue from the Crown | - | - | - |
| Revenue from Others | - | - | 972 |
Comparators for Restructured Appropriation
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Vote, Type and Title of Appropriation | Budgeted $000 | Estimated Actual $000 | Budget $000 |
| Administration of Fuel Quality Monitoring Programme | 1,016 | 1,016 | 1,007 |
What is Intended to be Achieved with this Appropriation
This appropriation contributes to creating a trading environment in which consumers are well informed, adequately protected, trading is fair and consumers and businesses participate with confidence.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Administration and maintenance of a Fuel Quality Monitoring Programme enforcing compliance with the Engine Fuel Specifications Regulations 2011 to promote and maintain confidence in the quality of the retail fuel supply. | New measure | New measure | Annual publication of the Fuel Quality Monitoring Report |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Transfer from Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts | 2014/15 | - | 1,007 | 1,007 | 1,007 | 1,007 |
Reasons for Change in Appropriation
This appropriation was established for 2014/15 with funding transferred from the Administration of Gas, Electricity and Energy Efficiency Regulations and Related Acts appropriation.
Energy and Resource Information Services (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 1,267 | 1,267 | 1,019 |
| Revenue from the Crown | 1,267 | 1,267 | 1,019 |
| Revenue from Others | - | - | - |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide information and technical advice on energy and resources.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| New Zealand's obligations for reporting energy information to international organisations, including the International Energy Agency (IEA), Asia Pacific Economic Cooperation (APEC) and United Nations Framework Convention on Climate Change (UNFCCC) are met. | All international requirements are met. Data is provided to the international organisations by their stated deadlines. | All international requirements are met. Data is provided to the international organisations by their stated deadlines. | All international requirements are met. Data is provided to the international organisations by their stated deadlines. |
| All publications and information provided on projections of energy supply and demand and energy sector greenhouse gas emissions are reliable. | All publications are reviewed for completeness and accuracy before publication. Methodologies are reviewed externally, on an as required basis and published on MBIE website. | All publications are reviewed for completeness and accuracy before publication. Methodologies are reviewed externally, on an as required basis and published on MBIE website. | All publications are reviewed for completeness and accuracy before publication. Methodologies are reviewed externally, on an as required basis and published on MBIE website. |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Efficiency Dividend | 2012/13 | (38) | (38) | (38) | (38) | (38) |
Reasons for Change in Appropriation#
The decreased appropriation is a result of a one-off transfer from 2012/13 to 2013/14 in retention of underspends.
Energy and Resource Information Services RDA (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 1,827 | 1,827 | 1,827 |
| Revenue from Others | 1,827 | 1,827 | 1,827 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide information and technical advice on energy and resources.
How Performance will be Assessed and End of Year Reporting Requirements#
Refer to the Energy and Resource Information Services appropriation for performance measures and standards, which apply to both the revenue-dependent part of the appropriation and this part.
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Energy and Resources Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 1,492 | 1,492 | 1,476 |
| Revenue from the Crown | 1,492 | 1,492 | 1,476 |
| Revenue from Others | - | - | - |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide effective and efficient ministerial services; and to monitor the performance and compliance of Crown entities.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Responses to Parliamentary Questions, Ministerial Correspondence and Ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes. | 95% or above | 95% or above | 95% or above |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Efficiency Dividend | 2012/13 | (23) | (23) | (23) | (23) | (23) |
Management of the Crown Mineral Estate (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 18,103 | 18,103 | 17,458 |
| Revenue from the Crown | 11,948 | 11,948 | 11,303 |
| Revenue from Others | 6,162 | 6,162 | 6,162 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide efficient allocation and management of Crown-owned petroleum and mineral resources.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Timeliness of decision making on the acceptance of petroleum mining permit applications. | Updated measure | Updated measure | 100% of petroleum mining permit applications are accepted or declined within 120 working days |
| Timeliness of assessment of completeness of new minerals permit applications. | Updated measure | Updated measure | 95% of new permit applications for minerals are assessed for completeness and the applicant contacted within 5 working days. If the application is incomplete the applicant is advised (within the 5 working days) to meet its obligations |
| Timeliness of processing of new minerals permit applications. | New measure | New measure | 80% of new minerals permit applications are granted or declined within 6 months |
| Timeliness of processing of minerals permit change applications. | New measure | New measure | 90% of minerals permit change applications are granted or declined within 3 months |
| Timeliness of assessment of new petroleum exploration permit applications in Block Offer. | New measure | New measure | 100% of petroleum exploration permit applications are assessed in accordance with the Block Offer Initiative for Bids (IFB) and accepted or declined within 5 months |
| Timeliness of processing of petroleum exploration permit applications (with the exception of new exploration permit applications). | New measure | New measure | 100% of petroleum exploration permit applications are accepted or declined within 90 working days |
| Timeliness of processing of royalty returns. | New Measure | New Measure | 100% of permit holders' royalty returns are receipted within 30 days |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Savings as a result of MBIE formation | 2014/15 | - | (285) | (285) | (285) | (285) |
| Efficiency Dividend | 2012/13 | (286) | (286) | (286) | (286) | (286) |
| Petroleum Action Plan - Implementing the Recommendations of the Agency Capability Review | 2011/12 | 8,800 | 8,800 | 8,800 | 8,800 | 8,800 |
Reasons for Change in Appropriation#
The decreased appropriation is a result of one-off transfer from 2012/13 to 2013/14 in retention of underspends of $360,000, and savings returned to the Crown of $285,000 in 2014/15 and outyears as a result of the formation of MBIE.
Memorandum Account#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
Management of Crown Mineral Estate | |||
| Opening Balance at 1 July | 490 | 490 | (447) |
| Revenue | 6,162 | 6,162 | 6,162 |
| Expenses | (6,155) | (7,099) | (7,500) |
| Transfers and Adjustments | - | - | - |
Closing Balance at 30 June | 497 | (447) | (1,785) |
The Ministry is considering options to reduce the forecast 2014/15 deficit in outyears.
Policy Advice - Energy and Resource Issues (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 3,815 | 3,815 | 4,811 |
| Revenue from the Crown | 3,793 | 3,793 | 4,789 |
| Revenue from Others | 22 | 22 | 22 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to achieve timely, high quality policy advice as measured by the satisfaction of the Minister; external review of MBIE's policy advice; and hourly cost of policy advice.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| The satisfaction of the Minister of Energy and Resources with the policy advice service, as per the common satisfaction survey. | At least 70% | At least 70% | At least 70% |
| Technical quality of policy advice papers assessed by a survey with a methodological robustness of 80%. | At least an average of 73% | At least an average of 73% | At least an average of 73% |
| The total cost per hour of producing outputs. | At most $155 | At most $155 | At most $155 |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Savings as a result of MBIE formation | 2014/15 | - | (74) | (74) | (74) | (74) |
| Efficiency Dividend | 2012/13 | (85) | (85) | (85) | (85) | (85) |
| Reinstate Efficiency Dividend | 2012/13 | 177 | 177 | 177 | 177 | 177 |
Reasons for Change in Appropriation#
The increased appropriation is due mainly to a one-off fiscally neutral adjustment in 2013/14 to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation management structure.
Part 3 - Details of Non-Departmental Appropriations#
3.1 - Non-Departmental Output Expenses#
Electricity Industry Governance and Market Operations (M28)
Scope of Appropriation
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 68,145 | 68,145 | 73,399 |
Components of the Appropriation
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| System operator service provider costs | 38,137 | 36,524 | 40,139 |
| Other service provider costs | 11,170 | 11,170 | 12,431 |
| Electricity Authority Operations | 18,838 | 18,838 | 18,329 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to contribute to achieving competition in, reliable supply by, and the efficient operation of the electricity industry for the long term benefit of consumers.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| The percentage of notifications of alleged breaches completed or referred to the Rulings Panel within three months/six months/ twelve months of notification. | 77.5% / 87.5% / 98% | 77.5% / 87.5% / 98% | 80% / 90% / 98% |
| Electricity system and market operation performance will be assessed by monitoring service provider performance to ensure that contract and Code requirements, including performance standards, are met. | New measure | New measure | Contract, Code and performance standards met |
| Authority market development performance will be measured by progress against planned initiatives and net benefits to consumers. | New measure | New measure | At least 5 of the 6 top priority market development initiatives complete planned milestones |
| Consumer participation programme(s) initiated (Note 1). | New measure | New measure | Successful programme delivery |
Note 1 - Replaces previous MYA promoting and facilitating consumer switching, which ended on 30 April 2014. See reasons for change in appropriation heading below.
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Electricity Authority in its annual report.
Service Providers
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Electricity Authority | 68,145 | 68,145 | 73,399 | Provider's annual report | Ongoing |
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Electricity Authority - Three Year Customer Switching Fund | 2014/15 | - | 2,500 | 2,500 | 2,500 | - |
| Electricity Authority - System Operator Service Provider Agreement (SOSPA) | 2013/14 | 3,272 | 5,306 | 8,381 | 7,944 | 7,944 |
| Market For Financial Transmission Rights | 2012/13 | 960 | 960 | 960 | 960 | 960 |
| Changes to Appropriations for the implementation of New Governance Arrangements in the Electricity Industry Act 2010 | 2010/11 | 63,913 | 64,633 | 64,633 | 64,633 | 64,633 |
Reasons for Change in Appropriation
The increased appropriation is a result of funding for policy promoting consumer participation. The increase replaces a previous separate multi-year appropriation for promoting and facilitating consumer switching, which ended on 30 April 2014.
Implementation of the Home Insulation Programme (M28)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 2,000 | 2,000 | 2,500 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to cover the administration costs of implementing the home insulation programme. The programme is intended to deliver energy savings and health benefits to households at risk of housing related illness. It targets families with children, the elderly and people at risk of housing related illness.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Administer grants for retrofitting insulation: | |||
| Full compliance with basic principle | Full compliance with basic principle | Full compliance with basic principle |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Energy, Efficiency and Conservation Authority in its annual report.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Energy Efficiency and Conservation Authority | 2,000 | 2,000 | 2,500 | Provider's annual report | Ceases 30 June 2016 |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Establishment of the Home Insulation programme | 2013/14 | 2,000 | 2,500 | 2,500 | - | - |
Reasons for Change in Appropriation#
The increased appropriation is a result is due to a lower expenditure in the first year due to cost efficiencies achieved through synergies with the Warm Up New Zealand: Heat Smart programme which ceased at 30 June 2014.
Management of IEA Oil Stocks (M28)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 6,333 | 5,802 | 6,697 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to ensure New Zealand meets its 90 day oil stock holding obligation as a member of the International Energy Agency.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| New Zealand meets its International Energy Agency obligations. | New Zealand has 90 day oil stock reserves | New Zealand has 90 day oil stock reserves | New Zealand has 90 day oil stock reserves |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Minister for Energy and Resources in a report appended to the Ministry of Business Innovation and Employment's annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| New Zealand's International Oil Stockholding Obligation | 2013/14 | 2,185 | 3,333 | 5,658 | - | - |
Reasons for Change in Appropriation#
The increased appropriation is a result of the funding profile of New Zealand's International Oil Stockholding Obligation initiative.
Resource Data Acquisition and Management (M28)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriations, Adjustments and Use | $000 |
|---|---|---|
Resource Data Acquisition and Management (M28)This appropriation is limited to the acquisition and analysis of seismic information relating to New Zealand's minerals, petroleum and geothermal resources.Commences: 01 July 2014 Expires: 30 June 2018 | Original Appropriation | 8,000 |
| Adjustments to 2012/13 | - | |
| Adjustments for 2013/14 | - | |
| Adjusted Appropriation | 8,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | - | |
| Estimated Actual for 2014/15 | 2,000 | |
| Estimated Appropriation Remaining | 6,000 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide public good information about geological prospectivity of particular areas to generate commercial interest in exploration.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Vote, Type and Title of Appropriation | Budgeted $000 | Estimated Actual $000 | Budget $000 |
| Administer the Resources Data Acquisition and Management Fund, to advance knowledge of New Zealand's minerals, petroleum and geothermal resources. | New measure | New measure | Work is undertaken to agreed timelines and meets contract conditions All allocations meet the Ministry's procurement and financial guidelines |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Minister for Energy and Resources in a report appended to the Ministry of Business Innovation and Employment's annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| The Establishment of the Resource Data Acquisition and Management programme | 2014/15 | - | 2,000 | 2,000 | 2,000 | 2,000 |
Security Management (M28)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriations, Adjustments and Use | $000 |
|---|---|---|
Security Management (M28)This appropriation is limited to the management of emergency events by the System Operator, if required, including increased monitoring and management responsibilities in the event of an emerging security situation, and planning and running an emergency conservation campaign.Commences: 01 July 2012 Expires: 30 June 2017 | Original Appropriation | 6,000 |
| Adjustments to 2012/13 | - | |
| Adjustments for 2013/14 | - | |
| Adjusted Appropriation | 6,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | 2,400 | |
| Estimated Actual for 2014/15 | 1,200 | |
| Estimated Appropriation Remaining | 2,400 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to achieve enhanced security of supply in the electricity system during periods of emerging or actual security situations.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Timely decision for system operator requests for funding under the security management appropriation. | Updated measure | Updated measure | Decisions made on requests from the system operator for funding under this appropriation within 15 working days |
| The Electricity Authority decisions in relation to the security management appropriation made in accordance with the agreed process and criteria. | Funding decisions by the Electricity Authority follow the agreed process, and are in accordance with the criteria | Funding decisions by the Electricity Authority follow the agreed process, and are in accordance with the criteria | Funding decisions by the Electricity Authority follow the agreed process, and are in accordance with the criteria |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Electricity Authority in its annual report.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Electricity Authority | 2,400 | 2,400 | 1,200 | Provider's annual report | Ongoing |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Establishment of the Security Management programme | 2012/13 | 1,200 | 1,200 | 1,200 | 1,200 | - |
3.4 - Non-Departmental Other Expenses#
Electricity Litigation Fund (M28)#
Scope of Appropriation
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 444 | 444 | 444 |
What is Intended to be Achieved with this Appropriation
This appropriation ensures that the Electricity Authority is able to participate in litigation, or take prosecutions in accordance with its powers under the Electricity Industry Act 2010.
How Performance will be Assessed and End of Year Reporting Requirements
Performance measures are being developed and will be published in the 2014/15 Supplementary Estimates.
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Electricity Authority | 444 | 444 | 444 | N/A | Ongoing |
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Changes to Appropriations for the Implementation of New Governance Arrangements in the Electricity Industry Act 2010 | 2010/11 | 444 | 444 | 444 | 444 | 444 |
Home Insulation (M28)#
Scope of Appropriation and Expenses#
| Type, Title, Scope and Period of Appropriations | Appropriations, Adjustments and Use | $000 |
|---|---|---|
Home Insulation (M28)This appropriation is limited to grants towards insulation targeting low income households.Commences: 01 July 2013 Expires: 30 June 2016 | Original Appropriation | 93,000 |
| Adjustments to 2012/13 | - | |
| Adjustments for 2013/14 | - | |
| Adjusted Appropriation | 93,000 | |
| Actual to 2012/13 Year End | - | |
| Estimated Actual for 2013/14 | 33,000 | |
| Estimated Actual for 2014/15 | 32,500 | |
| Estimated Appropriation Remaining | 27,500 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to deliver energy savings and health benefits to households at risk of housing related illness. It targets families with children, the elderly and people at risk of housing related illness.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Provide subsidised retrofits to houses occupied by families with children, the elderly and people at risk of housing related illness. | Updated measure | Updated measure | 16,000 retrofits |
| Deliver an audit regime to provide confidence that installations are fit for purpose and represent value for money: | |||
| New measure | New measure | At least 5% audited 90% pass rate All identified faults rectified |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Energy Efficiency and Conservation Authority in its annual report.
Service Providers#
| Provider | 2013/14 Budgeted $000 | 2013/14 Estimated Actual $000 | 2014/15 Budget $000 | Reporting to the House | Expiry of Resourcing Commitment |
|---|---|---|---|---|---|
| Energy Efficiency and Conservation Authority | 33,000 | 33,000 | 32,500 | Provider's annual report | Ongoing |
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Establishment of the Home Insulation programme | 2013/14 | 33,000 | 32,500 | 27,500 | - | - |
International Energy Agency Contribution (M28)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 150 | 150 | 150 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide funding for energy related research undertaken by the International Energy Agency.
How Performance will be Assessed and End of Year Reporting Requirements#
An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| International Energy Agency and International Renewable Energy Agency contribution reprioritisations | 2011/12 | 120 | 120 | 120 | 120 | 120 |
International Energy Agency Subscription (M28)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 170 | 170 | 170 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to contribute to the payment of annual subscription for membership of the International Energy Agency.
How Performance will be Assessed and End of Year Reporting Requirements#
An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.
Ministry of Energy Residual Liabilities (M28)#
Scope of Appropriation#
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 199 | 199 | 199 |
What is Intended to be Achieved with this Appropriation#
This appropriation covers the work undertaken by the New Zealand Petroleum and Minerals business group to appoint and liaise with auditors of mine site rehabilitation work costs and the sharing of costs between the Crown and Solid Energy New Zealand (SENZ); meetings with SENZ to monitor the scope and schedule of rehabilitation work programmes; the approval of amendments to programmes; the approval of the payment of invoices, and the processing of rates demands from regional councils for former state coal mine sites.
How Performance will be Assessed and End of Year Reporting Requirements#
An exemption was granted under s15D(2)(b)(iii) of the Public Finance Act as the amount of this annual appropriation for a non-departmental other expense is less than $5 million.
3.5 - Non-Departmental Capital Expenditure#
Crown Energy Efficiency (M28)#
Scope of Appropriation
Capital Expenditure
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 2,000 | 1,500 | 2,000 |
What is Intended to be Achieved with this Appropriation
The appropriation is intended to deliver energy efficiency savings in the public sector.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| To facilitate savings within the public sector from energy efficiency projects through allocating $2 million of loans, providing annual savings of no less than 20% of the capital cost of energy efficient projects. | Updated measure | Updated measure | Annual cost savings of at least 20% of the value of energy efficiency projects |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Energy, Efficiency and Conservation Authority in its annual report.
Part 4 - Details of Multi-Category Expenses and Capital Expenditure#
Multi-Category Expenses and Capital Expenditure#
Energy Efficiency and Conservation (M28)
Overarching Purpose Statement
Scope of Appropriation
Non-Departmental Output Expenses
Electricity Efficiency
This category is limited to:
- conducting electricity efficiency research, and
- development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours.
Energy Efficiency and Conservation
This category is limited to operational and policy outputs in accordance with statutory functions under the Energy Efficiency and Conservation Act 2000 and the government's energy strategies.
Expenses, Revenue and Capital Expenditure
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
Total Appropriation | - | - | 34,103 |
Non-Departmental Output Expenses | |||
| Electricity Efficiency | - | - | 17,519 |
| Energy Efficiency and Conservation | - | - | 16,584 |
Comparators for Restructured Appropriation
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Vote, Type and Title of Appropriation | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Vote Energy - Non-Departmental Output Expense - Energy Efficiency and Conservation MCOA | |||
| Energy Efficiency | 13,000 | 13,000 | 17,519 |
| Energy Efficiency and Conservation | 17,904 | 17,904 | 16,584 |
| Total | 30,904 | 30,904 | 34,103 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to contribute to making improvements in energy efficiency, energy conservation and renewable energy, in accordance with the New Zealand Energy Efficiency and Conservation Strategy 2011-2016.
How Performance will be Assessed for this Appropriation
Performance will assessed by customer awareness of energy efficiency opportunities, energy savings from electricity levy funded activities, and the net carbon dioxide emission reductions.
What is Intended to be Achieved with each Category and How Performance will be Assessed
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
Non-Departmental Output Expenses | |||
Electricity Efficiency/Energy Efficiency and Conservation | |||
| This category is intended to contribute to making improvements in energy efficiency, energy conservation and renewable energy, in accordance with the New Zealand Energy Efficiency and Conservation Strategy 2011-2016. | |||
| Energy savings from electricity levy funded activities: | |||
| 1,235 GWh (4.4PJ) 220 GWh pa (0.8 PJ) | 1,235 GWh (4.4PJ) 220 GWh pa (0.8 PJ) | 1,836 GWh (6.6 PJ) 601 GWh pa (2.2 PJ) |
| 490 MW Annual savings 45 MW | 490 MW Annual savings 45 MW | 568 MW Annual savings 131 MW |
| Consumer and business markets are aware of energy efficiency opportunities and are engaged and willing to take action in key target sectors in residential, commercial, industrial and transport sectors. | New measure | New measure | 71% awareness |
| Implement new projects which reduce net carbon dioxide emissions at a total national net benefit. | |||
| New measure | New measure | 5,000 tonnes |
| New measure | New measure | 150,000 tonnes |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Establishment of the MCA Energy Efficiency and Conservation | 2014/15 | - | 34,103 | 35,052 | 34,103 | 34,103 |
Reasons for Change in Appropriation
This Multi-Category appropriation was established in 2014/15 by converting the previous Multi-Class output appropriation.