Energy Minister Simeon Brown says the new legislation will improve transparency of key information in the gas market to help the Government manage New Zealand’s dwindling gas supplies.

Parliament has passed the Gas (Market Transparency) Amendment Bill which allows regulations to be made to enable the collection and publication of gas market information.

Brown says improving access to high-quality data is critical.

“New Zealand’s declining gas reserves and tightening supply are creating significant problems and uncertainty for businesses and threatening wider economic impacts.

“For too long, the information that the Government and sector have had on gas reserves, production and demand has been fragmented, incomplete and outdated which is making the situation even harder to manage.

“The market is becoming more volatile and uncertain. In this environment, access to reliable, timely information is vital.”

The new regulation-making power will enable the Government to collect and publish more useful, comprehensive and timely data to underpin better planning and investment decisions by the Government, sector and businesses, Brown says. 

“This is part of the Government’s focus on fixing the basics and building the future by strengthening New Zealand’s energy security and supporting a more resilient economy.”

Consultation with stakeholders would determine what information should be collected and how it would be accessed and used, while taking into account compliance costs for market participants.

The move to improve transparency about the gas market follows the Government’s pre-Budget announcement of a new Gas Transition Loan Guarantee Scheme to help businesses using more than 1000 GJ of gas a year, reduce their gas use.

The Government has also launched a $200 million Gas Security Fund to seek ways to shore up New Zealand’s gas supply and storage.

“There is no single or quick solution to New Zealand’s energy challenges.

“Instead, the Government is working on a number of practical measures simultaneously, including fast-tracking consents for more renewable electricity generation, and making the market fairer, to help ensure all New Zealand homes and businesses have access to an affordable and reliable energy supply.”