Supplementary estimates of appropriations

Vote Energy - Supplementary estimates and supporting information 2008/09

MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister for Climate Change Issues (M12), Minister for Economic Development (M25), Minister of Energy and Resources (M28)

ADMINISTERING DEPARTMENT: Ministry of Economic Development

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

Details of Appropriations#

Details of Annual and Permanent Appropriations

Details of Annual and Permanent Appropriations - Energy
2008/09
Titles and Scopes of Appropriations by Appropriation TypeEstimates
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; fuel quality monitoring; and information disclosure.
5,6092215,830

Emissions Trading Implementation (M12)

This appropriation is limited to the implementation and administration of the New Zealand Emissions Trading Scheme.
4,9841,4006,384

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.
1,3281881,516

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.
1,2275251,752

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.
8,1141,0969,210

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.
6,4436657,108

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.
1,45651,461

Total Departmental Output Expenses

29,1614,10033,261

Non-Departmental Output Expenses

Acquisition of Petroleum Exploration Data - Extension (M28)

To fund 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.
5031,6842,187

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.
49,043-49,043

Energy Efficiency and Conservation MCOA (M28)

38,235(160)38,075
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.
18,401(5,000)13,401
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.
19,8344,84024,674

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.
7,117(1,101)6,016

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.
16,00050,95066,950

Management of IEA Oil Stocks (M28)

For the cost of managing and funding of oil stocks to meet International Energy Agency obligations.
10,000(4,300)5,700

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.
29,981-29,981

Total Non-Departmental Output Expenses

150,87952,797203,676

Non-Departmental Other Expenses

Electricity Commission Litigation Fund (M28)

Funding to ensure that the Electricity Commission 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 (with a particular focus on the homes of low income earners); and to develop the solar hot water industry.
19,30010,91230,212

International Energy Agency Contribution (M28)

Payment of contributions towards the cost of energy-related research undertaken by the International Energy Agency.
50-50

International Energy Agency Subscription (M28)

Payment of annual subscription for membership of the International Energy Agency.
150-150

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

20,14310,91231,055

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

Development of Reserve Electricity Generation Capacity (M28)

To provide funding for the purchase of a reserve electricity generation plant.
-200200

Total Non-Departmental Capital Expenditure

2,0002002,200

Total Annual and Permanent Appropriations

202,18368,009270,192

Details of Multi-Year Appropriations#

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

Non-Departmental Output Expenses

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 (M25)

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