Details of that review will be finalised in the coming weeks but the government wants to ensure the market is efficient, effectively competitive and fit for the future.
Energy Minister Simeon Brown said this afternoon that New Zealand currently had inadequate supply of natural gas to meet demand.
“New Zealand needs abundant, affordable energy. That’s why the coalition government is taking a series of immediate actions to restore confidence to our energy sector and remove regulatory barriers that have stopped firms generating electricity or bringing in the fuel that Kiwis need.”
The government will also pass legislation by the end of the year to reverse the oil and gas exploration ban, and remove regulatory barriers to the construction of facilities to import Liquefied Natural Gas (LNG).
Previously, the oil and gas exploration reversal legislation was only due to be introduced this year.
LNG is used widely overseas to provide flexible and scalable energy supply, and Cabinet has now agreed to legislation consents for an LNG terminal.
Cabinet has also agreed to:
• Ease restrictions on electricity lines companies owning generation – details to be confirmed later this year
• Ensure access for gentailers to hydro contingency
• Improve electricity market regulation
