Estimates of appropriations

Vote Energy - Estimates 2013/2014

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Energy and Resources (M28)

ADMINISTERING DEPARTMENT: Ministry of Business, Innovation and Employment

MINISTER RESPONSIBLE FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development

Overview of the Vote#

The Minister of Energy and Resources is responsible for appropriations in the Vote for the 2013/14 financial year covering the following:

Departmental appropriations consisting of:

  • a total of under $7 million for policy advice on the operation and information disclosure of energy resource markets, services to support the Minister, and monitoring the performance and compliance of Crown entities
  • a total of over $18 million for the management of the Crown mineral estate
  • a total of under $6 million for the administration of the gas, and electrical safety regime, which is an industry levy funded activity, and
  • a total of just over $3 million for the 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.

Non-departmental appropriations consisting of:

  • a total of just over $68 million for the Electricity Authority's work in regulating the electricity system, this is an industry levy funded activity
  • a total of under $77 million for the Energy Efficiency and Conservation Authority's work in promoting energy efficiency which includes providing grants and assistance of a forecast $33 million for the Home Insulation programme and $11 million for the Warm Up New Zealand: Heat Smart programme in 2013/14
  • a total of just over $5 million to manage and fund New Zealand's oil stocks obligations with the International Energy Agency
  • a total of $3 million for the Crown's contribution to Pike River related matters
  • a total of $2 million in the final year of a four year multi-year appropriation for facilitating and promoting increased switching between suppliers by electricity consumers
  • a total of $2 million for the acquisition of petroleum data
  • a total of under $2 million for the management of emergency events by the electricity System Operator, including increased monitoring and management responsibilities in the event of an emerging security situation, and planning and running an emergency conservation campaign
  • a total of $519,000 for international membership fees, and to meet Ministry of Energy residual liabilities in regards to urgent mine restoration and rehabilitation relating to the operations of the state coal mines prior to 1987, and
  • a total of $558,000 for the contestable fund for deployment of marine energy devices.

Capital expenditure consists of:

  • a total of $2 million in non-departmental capital in Crown Energy Efficiency.

The Ministry expects to collect just over $472 million of Tax and Non-Tax revenue in 2013/14:

  • a total of over $351 million from petroleum royalties
  • a total of under $86 million in levies from the Electricity Industry, and
  • a total of just under $36 million from coal and gas energy resource levies.

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
2012/132013/14
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.
5,3275,3275,680

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.
2,0612,0611,267

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.
1,7271,7271,827

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.
1,5171,5171,492

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.
15,69715,37918,103

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.
5,0285,0285,215

Total Departmental Output Expenses

31,35731,03933,584

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.
63,90663,90668,145

Energy Efficiency and Conservation MCOA (M28)

37,34437,34430,904
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.
13,00013,00013,000
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.
24,34424,34417,904

Implementation of the Home Insulation Programme (M28)

This appropriation is limited to the implementation of the Home Insulation programme.
--2,000

Management of IEA Oil Stocks (M28)

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.
5,5225,5225,185

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.
200200-

Total Non-Departmental Output Expenses

106,972106,972106,234

Non-Departmental Other Expenses

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.
2,0002,0003,000

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.
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.
680680680

International Energy Agency Contribution (M28)

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.
150150150

International Energy Agency Subscription (M28)

Payment of annual subscription for membership of the International Energy Agency.
170170170

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

Air Quality Grants and Assistance (M28)

This appropriation is limited to assistance for the decommissioning of high-emission heating options to improve air quality in polluted airsheds.
1,1001,100-

Total Non-Departmental Other Expenses

4,7434,7434,643

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

Total Non-Departmental Capital Expenditure

2,0002,0002,000

Total Annual and Permanent Appropriations

145,072144,754146,461

Details of Multi-Year Appropriations#

Multi-Year Appropriations - Energy
Type, Title, Scope and Period of AppropriationsAppropriation, Adjustments and Use$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 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation20,000
Actual to 2011/12 Year End15,557
Estimated Actual for 2012/132,443
Estimated Actual for 2013/142,000
Estimated Appropriation Remaining-

Security Management (M28) (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: 1 July 2012

Expires: 30 June 2017

Original Appropriation6,000
Adjustments for 2011/12(1,200)
Adjustments to 2012/131,200
Adjusted Appropriation6,000
Actual to 2011/12 Year End-
Estimated Actual for 2012/131,200
Estimated Actual for 2013/141,200
Estimated Appropriation Remaining3,600

Non-Departmental Other Expenses

Contestable Fund for Deployment of Marine Energy Devices (M28) (M28)

This appropriation is limited to a contestable fund for marine energy generation and associated administration.

Commences: 1 July 2011

Expires: 30 June 2016

Original Appropriation4,949
Adjustments for 2011/12(1,852)
Adjustments to 2012/13(1,000)
Adjusted Appropriation2,097
Actual to 2011/12 Year End-
Estimated Actual for 2012/13225
Estimated Actual for 2013/14558
Estimated Appropriation Remaining1,314

Home Insulation (M28) (M28)

This appropriation is limited to grants towards insulation targeting low income households.

Commences: 1 July 2013

Expires: 30 June 2016

Original Appropriation93,000
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation93,000
Actual to 2011/12 Year End-
Estimated Actual for 2012/13-
Estimated Actual for 2013/1433,000
Estimated Appropriation Remaining60,000

Promoting and Facilitating Customer Switching (M28) (M28)

This appropriation is limited to facilitating, and promoting increased switching of electricity suppliers to consumers.

Commences: 1 November 2010

Expires: 30 April 2014

Original Appropriation10,500
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation10,500
Actual to 2011/12 Year End4,902
Estimated Actual for 2012/133,598
Estimated Actual for 2013/142,000
Estimated Appropriation Remaining-

Ratana Housing Repairs (M28)

This appropriation is limited to the repair of housing at Ratana to a standard which improves the overall safety and energy efficiency of the house and enables the installation of clean-heating devices and insulation.

Commences: 6 December 2010

Expires: 30 June 2013

Original Appropriation2,060
Adjustments for 2011/12-
Adjustments to 2012/13-
Adjusted Appropriation2,060
Actual to 2011/12 Year End64
Estimated Actual for 2012/131,996
Estimated Actual for 2013/14-
Estimated Appropriation Remaining-

Warm Up New Zealand (M28) (M28)

This appropriation is limited to grants towards insulation and clean heating devices to make New Zealand homes healthier and more energy efficient.

Commences: 1 January 2010

Expires: 30 June 2014

Original Appropriation244,950
Adjustments for 2011/1230,118
Adjustments to 2012/13-
Adjusted Appropriation275,068
Actual to 2011/12 Year End183,300
Estimated Actual for 2012/1380,768
Estimated Actual for 2013/1411,000
Estimated Appropriation Remaining-