Formats and related files
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for Climate Change Issues (M12), Minister for Economic Development (M25), Minister of Energy (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
| 2007/08 | |||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Administration of Gas and Electricity Regulations (M28)Advice on the administration of the gas and electricity safety and associated policy work and administration of regimes on supply, quality and measurement for gas and electricity safety; petroleum quality monitoring; electrical worker licensing; and information disclosure for the gas industry. |
5,607 | (500) | 5,107 |
Emissions Trading Implementation (M12)This appropriation is limited to the implementation and administration of the New Zealand Emissions Trading Scheme. |
- | 3,312 | 3,312 |
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. |
1,877 | (231) | 1,646 |
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. |
1,027 | (1,027) | - |
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. |
- | 1,027 | 1,027 |
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. |
8,831 | 1,400 | 10,231 |
Policy Advice on Energy and Resource Issues (M28)Policy advice on the operation of energy and resource markets (electricity, oil, gas, geothermal, coal, minerals and related natural resources) including Treaty of Waitangi issues in relation to natural resources in particular mineral and energy resources. |
5,759 | 268 | 6,027 |
Provision of Climate Change Unit Register and Information (M28)Services relating to the implementation and operation of a register to enable the allocation and trading of climate change units under the Climate Change Response Act 2002. |
1,456 | - | 1,456 |
Total Departmental Output Expenses |
24,557 | 4,249 | 28,806 |
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. |
1,778 | 1,156 | 2,934 |
Control of Natural Gas Services (M28)For the costs of administering the Commerce Act 1986 Part 5 control regime over the gas pipeline services of Powerco and Vector. |
300 | 1,881 | 2,181 |
Electricity Efficiency (M28)The performance of electricity efficiency functions appropriation covers:1. conducting electricity efficiency research; and2. development and administration of programmes that provide incentives for cost-effective energy efficiency and conservation, aimed at changing market behaviours. |
13,074 | - | 13,074 |
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 |
Enforcement of Electricity Sector Regulation (M28)For the provision of 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. |
3,317 | 2,261 | 5,578 |
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. |
16,000 | 17,500 | 33,500 |
Management of IEA Oil Stocks (M28)For the cost of managing and funding of oil stocks to meet International Energy Agency obligations. |
22,000 | - | 22,000 |
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; and2. 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 |
135,493 | 22,798 | 158,291 |
Other Expenses to be incurred by the Crown |
|||
Electricity Commission Litigation Fund (M28)Funding to ensure that the Electricity Commission is able to participate in litigation effectively and without delay. |
444 | - | 444 |
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. |
115 | 35 | 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 Other Expenses to be incurred by the Crown |
808 | 35 | 843 |
Total Annual and Permanent Appropriations |
160,858 | 27,082 | 187,940 |
Details of Multi-Year Appropriations#
| Type, Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Non-Departmental Output Expenses |
||
Generating Reserve Electricity At Whirinaki MYA (M28)To cover Whirinaki non-operating and maintenance security of supply costs; predominantly expected to cover fuel supply in the event that the plant is required to generate reserve electricity. Commences: 1 July 2004 Expires: 30 June 2009 |
Original Appropriation | 16,000 |
| Adjustments for 2006/07 | 26,191 | |
| Adjustments to 2007/08 | (39,045) | |
| Adjusted Appropriation | 3,146 | |
| Actual to 2006/07 Year End | 3,146 | |
| Estimated Actual for 2007/08 | - | |
| Estimated Actual for 2008/09 | - | |
| Estimated Appropriation Remaining | - | |
Generating Reserve Electricity At Whirinaki MYA (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 Appropriation | 49,045 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | 9,956 | |
| Adjusted Appropriation | 59,001 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | 6,394 | |
| Estimated Actual for 2008/09 | 10,000 | |
| Estimated Appropriation Remaining | 42,607 | |
Reserve Energy and Emergency Measures - Variable MYA (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 Appropriation | 5,000 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | 1,000 | |
| Adjusted Appropriation | 6,000 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | - | |
| Estimated Actual for 2008/09 | 1,000 | |
| Estimated Appropriation Remaining | 5,000 | |
Security of Supply - Procurement Costs MYA (M28)To implement emergency options if needed, including the purchase of demand side management and reserve energy production (fuel for the Whirinaki Plant). Commences: 1 July 2004 Expires: 30 June 2009 |
Original Appropriation | 16,000 |
| Adjustments for 2006/07 | (13,333) | |
| Adjustments to 2007/08 | (2,667) | |
| Adjusted Appropriation | - | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | - | |
| Estimated Actual for 2008/09 | - | |
| Estimated Appropriation Remaining | - | |
Other Expenses to be incurred by the Crown |
||
Contestable Fund for Deployment of Marine Energy Devices MYA (M25)Contestable fund for marine energy generation and associated administration costs. Commences: 1 July 2007 Expires: 30 June 2011 |
Original Appropriation | 8,000 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | (495) | |
| Adjusted Appropriation | 7,505 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | 1,000 | |
| Estimated Actual for 2008/09 | 1,885 | |
| Estimated Appropriation Remaining | 4,620 |
Information Supporting the Supplementary Estimates Vote Energy #
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister Responsible for Climate Change Issues (M12), Minister for Economic Development (M25), Minister of Energy (M28)
ADMINISTERING DEPARTMENT: Ministry of Economic Development
MINISTER RESPONSIBLE FOR MINISTRY OF ECONOMIC DEVELOPMENT: Minister for Economic Development
Part 1 - Summary of the Vote#
Part 1.3 - Trends in the Vote
Summary of Financial Activity
| 2007/08 | |||||
|---|---|---|---|---|---|
| Estimates $000 |
Supplementary Estimates | Total $000 |
|||
| Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
|||
Appropriations |
|||||
| Output Expenses | 200,250 | 4,249 | 4,554 | 8,803 | 209,053 |
| Benefits and Other Unrequited Expenses | - | N/A | - | - | - |
| Borrowing Expenses | - | - | - | - | - |
| Other Expenses | 2,808 | - | (115) | (115) | 2,693 |
| Capital Expenditure | - | - | - | - | - |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
Total Appropriations |
203,058 | 4,249 | 4,439 | 8,688 | 211,746 |
Crown Revenue and Receipts |
|||||
| Tax Revenue | 33,780 | N/A | N/A | 13,520 | 47,300 |
| Non-Tax Revenue | 198,237 | N/A | N/A | 28,737 | 226,974 |
| Capital Receipts | - | N/A | N/A | - | - |
Total Crown Revenue and Receipts |
232,017 | N/A | N/A | 42,257 | 274,274 |
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Intended Impacts, Outcomes and Objectives
| Intended Impacts, Outcomes or Objectives of Appropriations | Appropriations |
|---|---|
| Objective: To implement and administer the New Zealand Emissions Trading Scheme. | Emissions Trading Implementation |
Administration of Gas and Electricity Regulations (M28)
Scope of Appropriation
Expenses and Revenue
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 5,607 | (500) | 5,107 |
| Revenue from the Crown | 895 | (100) | 795 |
| Revenue from Others | 4,783 | (400) | 4,383 |
Reasons for Change in Appropriation
Transfer of $100,000 funding from this appropriation to Vote Commerce to assist with mitigating immediate risks. Also, reduction of $400,000 reflecting that legislation for Liquefied petroleum gas (LPG) funding has not yet been approved.
Emissions Trading Implementation (M12)#
Scope of Appropriation#
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 3,312 | 3,312 |
| Revenue from the Crown | - | 3,312 | 3,312 |
Reasons for Change in Appropriation#
This new appropriation was established during the 2007/08 financial year for the implementation and administration of the New Zealand Emissions Trading Scheme.
Output Performance Measures and Standards#
| 2007/08 | |||
|---|---|---|---|
| Performance Measures | Estimates Standard |
Supplementary Estimates Standard |
Total Standard |
| The work programme which will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan, is expected to include preparation of the detailed business requirements specifications for development of the New Zealand Emissions Trading Scheme. | N/A | In accordance with work programme agreed by Minister | In accordance with work programme agreed by Minister |
| The detailed business specifications will be prepared in accordance with the Ministry of Economic Development standards and practices for information technology projects, with delivery and reporting against agreed milestones. | N/A | Met | In accordance with agreed milestones |
Energy and Resource Information Services (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 1,877 | (231) | 1,646 |
| Revenue from the Crown | 1,852 | (231) | 1,621 |
| Revenue from Others | 25 | - | 25 |
Reasons for Change in Appropriation#
Transfer of $400,000 from this appropriation to Vote Commerce to assist with mitigating immediate risks; partially offset by an expense transfer of $169,000 from 2006/07 to 2007/08 financial year.
Management of the Crown Mineral Estate (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 8,831 | 1,400 | 10,231 |
| Revenue from the Crown | 2,908 | - | 2,908 |
| Revenue from Others | 5,508 | 1,500 | 7,008 |
Reasons for Change in Appropriation#
A fiscally neutral adjustment was sought to accommodate the increase in Petroleum, Minerals and Coal permit activity.
Policy Advice on Energy and Resource Issues (M28)#
Scope of Appropriation#
Expenses and Revenue#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 5,759 | 268 | 6,027 |
| Revenue from the Crown | 5,725 | 197 | 5,922 |
| Revenue from Others | 34 | 71 | 105 |
Reasons for Change in Appropriation#
An expense transfer from 2006/07 to 2007/08 of $117,000 and additional funding for the implementation and administration of the New Zealand Marine Energy Deployment Fund of $150,000 and New Zealand Energy Efficiency and Conservation Strategies of $150,000, offset by a delay in the Biofuels Sales Obligation consumer awareness programme of ($220,000) expense transfer from 2007/08 to 2008/09. A small technical adjustment was also made to revenue and expenses relating to funding from the New Zealand Agency for International Development.
Part 2.2 - Non-Departmental Output Expenses#
Acquisition of Petroleum Exploration Data - Extension (M28)#
Scope of Appropriation
Expenses
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 1,778 | 1,156 | 2,934 |
Reasons for Change in Appropriation
A transfer of 2006/07 unspent funds to 2007/08 financial year was approved.
Control of Natural Gas Services (M28)#
Scope of Appropriation#
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 300 | 1,881 | 2,181 |
Reasons for Change in Appropriation#
Additional funding for the protracted Commerce Commission gas pipeline control work and review of Parts 4 and 4A of the Commerce Act.
Enforcement of Electricity Sector Regulation (M28)#
Scope of Appropriation#
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 3,317 | 2,261 | 5,578 |
Reasons for Change in Appropriation#
Funding for work relating to the development of input methodologies of $750,000, plus an expense transfer from 2006/07 to 2007/08 relating to delays in general electricity sector regulation enforcement work and the Transpower post-breach inquiry of $1,511,000.
Generating Reserve Electricity At Whirinaki MYA (M28)#
Scope of Appropriation and Expenses#
| Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Non-Departmental Output Expenses |
||
Generating Reserve Electricity At Whirinaki MYA (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 Appropriation | 49,045 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | 9,956 | |
| Adjusted Appropriation | 59,001 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | 6,394 | |
| Estimated Actual for 2008/09 | 10,000 | |
| Estimated Appropriation Remaining | 42,607 |
Reasons for Change in Appropriation#
Transfer of part 2006/07 old multi-year appropriation unused funds upon restructure to this appropriation.
Reserve Energy and Emergency Measures - Variable MYA (M28)#
Scope of Appropriation and Expenses#
| Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Non-Departmental Output Expenses |
||
Reserve Energy and Emergency Measures - Variable MYA (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 Appropriation | 5,000 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | 1,000 | |
| Adjusted Appropriation | 6,000 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | - | |
| Estimated Actual for 2008/09 | 1,000 | |
| Estimated Appropriation Remaining | 5,000 |
Reasons for Change in Appropriation#
Transfer of part 2006/07 balance of unused funds from old multi year appropriation to this new appropriation upon restructure.
Security of Supply - Procurement Costs MYA (M28)#
Scope of Appropriation and Expenses#
| Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Non-Departmental Output Expenses |
||
Security of Supply - Procurement Costs MYA (M28)To implement emergency options if needed, including the purchase of demand side management and reserve energy production (fuel for the Whirinaki Plant). Commences: 1 July 2004 Expires: 30 June 2009 |
Original Appropriation | 16,000 |
| Adjustments for 2006/07 | (13,333) | |
| Adjustments to 2007/08 | (2,667) | |
| Adjusted Appropriation | - | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | - | |
| Estimated Actual for 2008/09 | - | |
| Estimated Appropriation Remaining | - |
Reasons for Change in Appropriation#
This multi-year appropriation expired at the start of the 2007/08 financial year and was replaced by the appropriation entitled Reserve Energy and Emergency Measures - Variable.
Part 5 - Details and Expected Results for Other Expenses#
Part 5.2 - Non-Departmental Other Expenses#
Contestable Fund for Deployment of Marine Energy Devices (M25)
Scope of Appropriation and Expenses
| Type, Title, Scope and Period of Appropriations | Appropriation | $000 |
|---|---|---|
Other Expenses to be incurred by the Crown |
||
Contestable Fund for Deployment of Marine Energy Devices (M25) (M25)Contestable fund for marine energy generation and associated administration costs. Commences: 1 July 2007 Expires: 30 June 2011 |
Original Appropriation | 8,000 |
| Adjustments for 2006/07 | - | |
| Adjustments to 2007/08 | (495) | |
| Adjusted Appropriation | 7,505 | |
| Actual to 2006/07 Year End | - | |
| Estimated Actual for 2007/08 | 1,000 | |
| Estimated Actual for 2008/09 | 1,885 | |
| Estimated Appropriation Remaining | 4,620 |
Reasons for Change in Appropriation
Costs associated with implementing and administering this fund across the four-year period of the multi-year appropriation were transferred to Departmental Output Expense Policy Advice on Energy and Resource Issues.
International Energy Agency Subscription (M28)#
Scope of Appropriation#
Expenses#
| 2007/08 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 115 | 35 | 150 |
Reasons for Change in Appropriation#
Transfer of funds from Vote Commerce to cover increases in the subscription.