Regulatory Regime for the Gas Sector

Abstract

As in many parts of the world, the New Zealand gas industry was subject to State intervention, both through ownership and heavy regulation. Policies of recent Governments have been for the State to withdraw from ownership of gas enterprises, and where possible remove regulations so as to open the industry up to greater competition. A new “light-handed” regulatory regime is now being introduced which is designed specifically to deal with the problems associated with those parts of the industry where there is limited scope for competition – in access to pipelines and the pricing of gas transmission and distribution. The new approach is seen as having the potential to bring significant long run advantages to both producers and consumers of gas.