Estimates of appropriations

Vote Energy - Estimates 2009/2010

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Climate Change Issues (M12), Minister of Energy and Resources (M28)

ADMINISTERING DEPARTMENT: Ministry of Economic Development

MINISTER RESPONSIBLE FOR MINISTRY OF ECONOMIC DEVELOPMENT: Minister for Economic Development

Overview of the Vote#

The Minister of Energy and Resources is responsible for appropriations in the Vote for the 2009/10 financial year covering the following:

  • a total of just over $28 million for policy advice on the operation and information disclosure of energy resource markets, management of the Crown mineral estate, administration of the gas, electrical safety and measurement and energy efficiency regimes, implementation of the New Zealand emissions trading scheme and associated emissions unit register, and provision of information on stock and flow levels of the energy and minerals sectors
  • a total of just under $97 million for the Electricity Commission's work in regulating the electricity system, securing reserve energy supplies for New Zealand now and into the future, and promoting electricity efficiency
  • a total of just over $73 million for the Energy Efficiency and Conservation Authority's work in promoting energy efficiency, including by providing grants and assistance
  • a total of $20 million over three years to support the acquisition of seismic data from New Zealand's frontier petroleum basins
  • a total of $9 million for grants relating to New Zealand produced biodiesel
  • a total of just under $194 million over the remaining four years of a five year multi-year appropriation for variable costs relating to maintaining a secure supply of energy for New Zealand; note that in the event of the Whirinaki power station operating, the related costs are normally recovered from the sale of the resulting electricity generated
  • a total of $17 million for the operating, maintenance and depreciation costs relating to the Whirinaki power station
  • a total of $3 million to manage and fund New Zealand's oil stocks obligations with the International Energy Agency
  • a total of under $1 million for international membership fees and to meet Ministry of Energy residual liabilities, and
  • a total of just under $8 million over four years for the deployment of marine energy devices.

Details of these appropriations are set out in Parts 2-6 for Vote Energy in the Information Supporting the Estimates of Appropriations.

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Energy
2008/092009/10
Titles and Scopes of Appropriations by Appropriation TypeBudgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

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.
5,8304,8615,405

Emissions Trading Implementation (M12)

This appropriation is limited to the implementation and administration of the New Zealand Emissions Trading Scheme.
6,3842,1903,263

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.
1,5161,3661,121

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.
1,7521,4561,865

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.
9,2109,0539,137

Policy Advice on Energy and Resource Issues (M28)

This appropriation is limited to the purchase of policy advice, ministerial servicing, and decision support for the Minister in relation to the operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and related natural resources) and energy efficiency and conservation issues, including Treaty of Waitangi issues in relation to natural resources in particular mineral and energy resources. It also includes purchase of ownership and purchase advice on Crown entities.
7,1086,2245,863

Provision of Climate Change Unit Register and Information (M28)

This appropriation is limited to services relating to the operation of a register to enable the allocation and trading of climate change units under the Climate Change Response Act 2002.
1,4611,0661,454

Total Departmental Output Expenses

33,26126,21628,108

Non-Departmental Output Expenses

Electricity Governance and Market Operations (M28)

Funds the Electricity Commission's major functions as the regulator for the electricity system. It also covers core electricity system and market operation functions, carried out under service provider contracts.
49,04349,04355,099

Energy Efficiency and Conservation MCOA (M28)

38,07538,07237,121
Electricity Efficiency
This 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.
13,40113,39811,000
Energy Efficiency and Conservation
This 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.
24,67424,67426,121

Maintenance and Operation of Whirinaki (M28)

Largely fixed operating and maintenance costs for Whirinaki power station including the Contact Operating and Maintenance contract, depreciation on the plant and obligations arising under the Reserve Generation Capacity Agreement.
66,95015,30017,000

Management of IEA Oil Stocks (M28)

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.
5,7004,8213,000

Reserve Energy and Emergency Measures-Availability Costs (M28)

Funds the cost of having reserve electricity capacity and capability available, including:
1. tendering for reserve energy and emergency options; and
2. ensuring availability of reserve energy capacity.
Does not include cost of supply of reserve energy (fuel) or implementation of emergency measures.
29,98127,58329,981

Acquisition of Petroleum Exploration Data - Extension (M28)

This appropriation is limited to the acquisition of seismic data in New Zealand's offshore petroleum basins.
5,7245,724-

Control of Natural Gas Services (M28)

For development of input methodologies under Part 4 of the Commerce Act 1986 and the costs of administering the Commerce Act 1986 Part 5 control regime over the gas pipeline services of Powerco and Vector.
2,1871,715-

Enforcement of Electricity Sector Regulation (M28)

For the provision of development of input methodologies under Part 4 and 4A of the Commerce Act 1986, the review of asset valuation methodologies, collecting and disclosing information, assessing performance against thresholds and implementing price controls as necessary in relation to electricity lines businesses and Transpower.
6,0163,630-

Total Non-Departmental Output Expenses

203,676145,888142,201

Non-Departmental Other Expenses

Biodiesel Grants (M28)

This appropriation is limited to the provision of grants to New Zealand biodiesel producers.
--9,000

Electricity Commission Litigation Fund (M28)

Funding to ensure that the Electricity Commission is able to participate in litigation effectively and without delay.
444444444

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.
30,21230,21245,368

International Energy Agency Contribution (M28)

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.
502550

International Energy Agency Subscription (M28)

Payment of annual subscription for membership of the International Energy Agency.
150149150

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.
199199199

Total Non-Departmental Other Expenses

31,05531,02955,211

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.
2,0002,0002,000

Development of Reserve Electricity Generation Capacity (M28)

This capital expenditure appropriation is limited to the purchase of reserve electricity generation plant.
200200-

Total Non-Departmental Capital Expenditure

2,2002,2002,000

Total Annual and Permanent Appropriations

270,192205,333227,520

Details of Multi-Year Appropriations#

Multi-Year Appropriations - Energy
Type, Title, Scope and Period of AppropriationsAppropriation$000

Non-Departmental Output Expenses

Acquisition of Petroleum Exploration Data (M28) (M28)

This appropriation is limited to the acquisition of seismic information relating to New Zealand’s offshore petroleum basins.

Commences: 1 July 2009

Expires: 30 June 2014

Original Appropriation20,000
Adjustments for 2007/08-
Adjustments to 2008/09-
Adjusted Appropriation20,000
Actual to 2007/08 Year End-
Estimated Actual for 2008/09-
Estimated Actual for 2009/1010,000
Estimated Appropriation Remaining10,000

Generating Reserve Electricity At Whirinaki (M28)

To cover Whirinaki Reserve Energy Plant security of supply costs, excluding those covered by the annual appropriation entitled Maintenance and Operation of Whirinaki. Predominantly expected to cover purchase of fuel against the event that the plant is required to generate reserve electricity.

Commences: 1 July 2007

Expires: 30 June 2012

Original Appropriation49,045
Adjustments for 2007/089,956
Adjustments to 2008/0985,000
Adjusted Appropriation144,001
Actual to 2007/08 Year End30,269
Estimated Actual for 2008/09500
Estimated Actual for 2009/109,607
Estimated Appropriation Remaining103,625

Reserve Energy and Emergency Measures - Variable (M28)

To cover Electricity Commission costs relating to the: 1. net variable operating costs of the Whirinaki Reserve Energy Plant when used to provide reserve energy, and 2. implementation of emergency measures.

Commences: 1 July 2007

Expires: 30 June 2012

Original Appropriation5,000
Adjustments for 2007/081,000
Adjustments to 2008/0980,000
Adjusted Appropriation86,000
Actual to 2007/08 Year End(3,448)
Estimated Actual for 2008/093,948
Estimated Actual for 2009/101,000
Estimated Appropriation Remaining84,500

Non-Departmental Other Expenses

Contestable Fund for Deployment of Marine Energy Devices (M28)

Contestable fund for marine energy generation and associated administration costs.

Commences: 1 July 2007

Expires: 30 June 2011

Original Appropriation8,000
Adjustments for 2007/08(495)
Adjustments to 2008/09-
Adjusted Appropriation7,505
Actual to 2007/08 Year End-
Estimated Actual for 2008/093,735
Estimated Actual for 2009/101,885
Estimated Appropriation Remaining1,885