Estimates of appropriations

Vote Energy - Estimates of Appropriations 2011/12

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 2011/12 financial year covering the following:

  • a total of just over $6.600 million for policy advice on the operation and information disclosure of energy resource markets
  • a total of just under $14.900 million for the management of the Crown mineral estate
  • a total of just under $5.700 million for the administration of the gas, electrical safety and measurement and energy efficiency regimes
  • a total of just under $2.900 million for the provision of information on stock and flow levels of the energy and minerals sectors
  • a total of just over $80 million for the Electricity Authority's work in regulating the electricity system, and securing reserve energy supplies for New Zealand now and into the future
  • a total of just under $146 million for the Energy Efficiency and Conservation Authority's work in promoting energy efficiency, including by providing grants and assistance of just over $101 million for the Warm Up New Zealand: Heat Smart programme
  • a total of $9 million for grants relating to New Zealand produced biodiesel
  • a total of $2 million in the last year of a five year multi-year appropriation for variable costs relating to maintaining a secure supply of energy for New Zealand subject to the impending sale of the Whirinaki Power station, and a total of $2 million for the operating, maintenance and depreciation costs relating to the station, subject to its impending sale
  • a total of $3.500 million in the second year of a four year multi-year appropriation for facilitating and promoting increased switching between suppliers by electricity consumers
  • 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 $1.400 million in the first year of a new five year multi-year appropriation for the deployment of marine energy devices.

The Minister for Climate Change Issues is responsible for appropriations in the Vote for the 2011/12 financial year covering a total of just over $6.400 million for the implementation and administration of the New Zealand emissions trading scheme and the associated emissions unit register.

The Ministry expects to collect just over $485 million of Crown revenue in 2011/12 which is mainly made up of: a total of just under $346 million from petroleum royalties; a total of just over $92 million in levies from the Electricity Industry; and a total of just over $30 million from 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
2010/112011/12
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.
5,3094,8355,680

Emissions Trading Implementation (M12)

This appropriation is limited to the implementation and administration of the New Zealand Emissions Trading Scheme.
4,8394,1634,847

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.
5,6575,1791,106

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.
1,8271,5611,827

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.
11,63210,32614,871

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.
8,0037,4176,619

Provision of Climate Change Unit Register and Information (M12)

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.
1,5591,3361,559

Total Departmental Output Expenses

38,82634,81736,509

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.
38,18138,18162,535

Energy Efficiency and Conservation MCOA (M28)

40,95440,95442,943
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.
13,00013,00017,519
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.
27,95427,95425,424

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.
11,00010,0002,000

Management of IEA Oil Stocks (M28)

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.
3,0003,0003,000

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.
23,98123,9816,245

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.
20,02120,021-

Total Non-Departmental Output Expenses

137,137136,137116,723

Non-Departmental Other Expenses

Biodiesel Grants (M28)

This appropriation is limited to the provision of grants to New Zealand biodiesel producers.
1,0001,0009,000

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.
296296444

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.
2,1082,1081,038

International Energy Agency Contribution (M28)

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.
5050150

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

Electricity Commission Litigation Fund (M28)

Funding to ensure that the Electricity Commission is able to participate in litigation effectively and without delay.
148148-

Total Non-Departmental Other Expenses

3,9713,97111,001

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

Electricity Authority Capital (M28)

This appropriation is limited to providing a capital injection to the Electricity Authority.
9,0119,011-

Total Non-Departmental Capital Expenditure

11,01111,0112,000

Total Annual and Permanent Appropriations

190,945185,936166,233

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)

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 2009/10-
Adjustments to 2010/11-
Adjusted Appropriation20,000
Actual to 2009/10 Year End12,279
Estimated Actual for 2010/115,721
Estimated Actual for 2011/12-
Estimated Appropriation Remaining2,000

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 2009/1094,956
Adjustments to 2010/11-
Adjusted Appropriation144,001
Actual to 2009/10 Year End33,490
Estimated Actual for 2010/1110,000
Estimated Actual for 2011/129,045
Estimated Appropriation Remaining91,466

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 2009/10(2,448)
Adjustments to 2010/11(2,302)
Adjusted Appropriation250
Actual to 2009/10 Year End(2,565)
Estimated Actual for 2010/11200
Estimated Actual for 2011/12-
Estimated Appropriation Remaining2,615

Reserve Energy and Emergency Measures - Variable Costs (M28)

This appropriation is limited to net variable operating costs of the Whirinaki Reserve Energy Plant when used to provide reserve energy; and implementation of emergency measures.

Commences: 1 November 2010

Expires: 30 June 2012

Original Appropriation4,867
Adjustments for 2009/10-
Adjustments to 2010/11-
Adjusted Appropriation4,867
Actual to 2009/10 Year End-
Estimated Actual for 2010/112,000
Estimated Actual for 2011/122,000
Estimated Appropriation Remaining867

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 2009/10(1,495)
Adjustments to 2010/11(5,799)
Adjusted Appropriation706
Actual to 2009/10 Year End38
Estimated Actual for 2010/11668
Estimated Actual for 2011/12-
Estimated Appropriation Remaining-

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: 1 July 2011

Expires: 30 June 2016

Original Appropriation4,949
Adjustments for 2009/10-
Adjustments to 2010/11-
Adjusted Appropriation4,949
Actual to 2009/10 Year End-
Estimated Actual for 2010/11-
Estimated Actual for 2011/121,328
Estimated Appropriation Remaining3,621

Promoting and Facilitating Customer Switching (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 2009/10-
Adjustments to 2010/11-
Adjusted Appropriation10,500
Actual to 2009/10 Year End-
Estimated Actual for 2010/111,500
Estimated Actual for 2011/123,500
Estimated Appropriation Remaining5,500

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 2009/10-
Adjustments to 2010/11-
Adjusted Appropriation2,060
Actual to 2009/10 Year End-
Estimated Actual for 2010/11687
Estimated Actual for 2011/12687
Estimated Appropriation Remaining686

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: 1 January 2010

Expires: 30 June 2013

Original Appropriation244,950
Adjustments for 2009/1031,768
Adjustments to 2010/11350
Adjusted Appropriation277,068
Actual to 2009/10 Year End33,103
Estimated Actual for 2010/11110,000
Estimated Actual for 2011/12101,067
Estimated Appropriation Remaining32,898