Supplementary estimates of appropriations

Vote Energy - Supplementary Estimates 2012/13

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

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Energy
  2012/13
Titles and Scopes of Appropriations by Appropriation Type Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
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.
5,680 (353) 5,327

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.
1,067 994 2,061

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 (100) 1,727

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.
1,517 - 1,517

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.
13,963 1,734 15,697

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.
5,010 18 5,028

Total Departmental Output Expenses

29,064 2,293 31,357

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.
63,906 - 63,906

Energy Efficiency and Conservation MCOA (M28)

37,344 - 37,344
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.
13,000 - 13,000
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.
24,344 - 24,344

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.
600 (400) 200

Management of IEA Oil Stocks (M28)

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.
5,160 362 5,522

Total Non-Departmental Output Expenses

107,010 (38) 106,972

Non-Departmental Other Expenses

     

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.
1,100 - 1,100

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.
- 2,000 2,000

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.
444 - 444

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

International Energy Agency Contribution (M28)

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.
150 - 150

International Energy Agency Subscription (M28)

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

Total Non-Departmental Other Expenses

2,743 2,000 4,743

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 - 2,000

Total Non-Departmental Capital Expenditure

2,000 - 2,000

Total Annual and Permanent Appropriations

140,817 4,255 145,072

Details of Multi-Year Appropriations#

Multi-Year Appropriations - Energy
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 Zealand’s offshore petroleum basins.

Commences: 1 July 2009

Expires: 30 June 2014

Original Appropriation 20,000
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 20,000
Actual to 2011/12 Year End 15,557
Estimated Actual for 2012/13 2,443
Estimated Actual for 2013/14 2,000
Estimated Appropriation Remaining -

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: 1 July 2012

Expires: 30 June 2017

Original Appropriation 6,000
Adjustments for 2011/12 (1,200)
Adjustments to 2012/13 1,200
Adjusted Appropriation 6,000
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 1,200
Estimated Actual for 2013/14 1,200
Estimated Appropriation Remaining 3,600

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 Appropriation 4,949
Adjustments for 2011/12 (1,852)
Adjustments to 2012/13 (1,000)
Adjusted Appropriation 2,097
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 225
Estimated Actual for 2013/14 558
Estimated Appropriation Remaining 1,314

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 Appropriation 10,500
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 10,500
Actual to 2011/12 Year End 4,902
Estimated Actual for 2012/13 3,598
Estimated Actual for 2013/14 2,000
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 Appropriation 2,060
Adjustments for 2011/12 -
Adjustments to 2012/13 -
Adjusted Appropriation 2,060
Actual to 2011/12 Year End 64
Estimated Actual for 2012/13 1,996
Estimated Actual for 2013/14 -
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: 1 January 2010

Expires: 30 June 2014

Original Appropriation 244,950
Adjustments for 2011/12 30,118
Adjustments to 2012/13 -
Adjusted Appropriation 275,068
Actual to 2011/12 Year End 183,300
Estimated Actual for 2012/13 80,768
Estimated Actual for 2013/14 11,000
Estimated Appropriation Remaining -

Information Supporting the Supplementary Estimates Vote Energy#

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

Part 1 - Summary of the Vote#

Part 1.3 - Trends in the Vote

Summary of Financial Activity

Summary of Financial Activity - Energy
  2012/13
    Supplementary Estimates  
  Estimates
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000
Total
$000

Appropriations

         
Output Expenses 137,274 2,293 2,405 4,698 141,972
Benefits and Other Unrequited Expenses - N/A - - -
Borrowing Expenses - - - - -
Other Expenses 80,209 - 11,121 11,121 91,330
Capital Expenditure 2,000 - - - 2,000
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -

Total Appropriations

219,483 2,293 13,526 15,819 235,302

Crown Revenue and Capital Receipts

         
Tax Revenue 35,874 N/A - - 35,874
Non-Tax Revenue 433,543 N/A (100) (100) 433,443
Capital Receipts 2,000 N/A - - 2,000

Total Crown Revenue and Capital Receipts

471,417 N/A (100) (100) 471,317

Part 2 - Details and Expected Performance for Output Expenses#

Part 2.1 - Departmental Output Expenses#

Administration of Gas, Electricity and Energy Efficiency Regulations and related Acts (M28)

Scope of Appropriation

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.

Expenses and Revenue

Expenses and Revenue - Administration of Gas, Electricity and Energy Efficiency Regulations and related Acts (M28) - Energy
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,680 (353) 5,327
Revenue from Crown 249 47 296
Revenue from Other 5,502 (400) 5,102

Reasons for Change in Appropriation

The decreased appropriation is a result of reduction of $500,000 relating to the Liquid Petroleum and Gas (LPG) revenue and associated expense. This was partially offset by a fiscally neutral adjustment (FNA) of $100,000 from the departmental output expense Energy and Resources Information Services to assist with the Fuel Quality Monitoring programme and $47,000 retention of underspend from 2011/12.

Energy and Resource Information Services RDA (M28)#

Scope of Appropriation#

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.

Reasons for Change in Appropriation#

This appropriation decreased from $1.827 million to $1.727 million as a result of an fiscally neutral adjustment of $100,000 to departmental output expense Administration of Gas, Electricity and Energy Efficiency Regulations and related Acts to assist with the Fuel Quality Monitoring programme.

Energy and Resource Information Services (M28)#

Scope of Appropriation#

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.

Reasons for Change in Appropriation#

This appropriation increased from $1.067 million to $2.061 million as a result of an expense transfer of $1.194 million from 2011/12 to reflect the delays in completing the technical investigations programme (geophysical data acquisition and other studies). This was partially offset by a $200,000 retention of underspend to 2013/14.

Management of the Crown Mineral Estate (M28)#

Scope of Appropriation#

Allocation and management of Crown-owned petroleum, coal and mineral resources under the Crown Minerals Act 1991 and minerals programmes issued under the Act.

Expenses and Revenue#

Expenses and Revenue - Management of the Crown Mineral Estate (M28) - Energy
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 13,963 1,734 15,697
Revenue from Crown 7,808 884 8,692
Revenue from Other 6,162 850 7,012

Reasons for Change in Appropriation#

This increased appropriation is a result of an expense transfer of $1.244 million from 2011/12 to assist with the delays in implementing the recommendations of the Crown Minerals Agency Capability review in 2012/13 and an FNA of $850,000 to assist with hosting the 2013 New Zealand Petroleum Conference.

This increase was partially offset by $360,000 retention of underspend to 2013/14.

Policy Advice - Energy and Resource Issues (M28)#

Scope of Appropriation#

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.

Expenses and Revenue#

Expenses and Revenue - Policy Advice Energy and Resource Issues (M28) - Energy
  2012/13
  Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 5,010 18 5,028
Revenue from Crown 4,988 18 5,006
Revenue from Other 22 - 22

Reasons for Change in Appropriation#

The increased appropriation is a result of $525,000 retention of underspend from 2011/12. This increase was partially offset by $330,000 retention of underspend transfer to 2013/14 and an FNA of an efficiency dividend of $177,000 to Vote Economic Development and Vote Commerce.

Part 2.2 - Non-Departmental Output Expenses#

Maintenance and Operation of Whirinaki (M28)#

Scope of Appropriation

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.

Reasons for Change in Appropriation

The appropriation decreased by $400,000 which was the amount of funding returned to the Crown as savings, as a result of the Whirinaki Power Plant being sold, and the Ministry's obligation to cover operating and maintenance costs ceased.

Management of IEA Oil Stocks (M28)#

Scope of Appropriation#

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

Reasons for Change in Appropriation#

The appropriation increased from $5.160 million to $5.522 million as a result of an expense transfer of $362,000 from 2011/12 reflecting the delay in the expected costs to meet New Zealand's IEA Oil Stock Obligations.

Part 5 - Details and Expected Results for Other Expenses#

Part 5.2 - Non-Departmental Other Expenses#

Contestable Fund for Deployment of Marine Energy Devices (M28)

Scope of Appropriation and Expenses

Multi-Year Appropriations - Energy
Type, Title, Scope and Period of Appropriations Appropriation, Adjustments and Use $000

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: 1 July 2011

Expires: 30 June 2016

Original Appropriation 4,949
Adjustments for 2011/12 (1,852)
Adjustments to 2012/13 (1,000)
Adjusted Appropriation 2,097
Actual to 2011/12 Year End -
Estimated Actual for 2012/13 225
Estimated Actual for 2013/14 558
Estimated Appropriation Remaining 1,314

Scope of Appropriation#

This appropriation is limited to providing a Crown contribution towards the potential recovery of bodies in the Pike River Coal Mine and related matters.

Reasons for Change in Appropriation#

The increased appropriation of $2 million is a result of an expense transfer of $5 million from 2011/12. This was partially offset by an expense transfer of $3 million from 2012/13 to 2013/14 to align the funding with the continuing discussions between the Government and Pike River families.