Energy firms warned for breaching information disclosure requirements
The Commerce Commission has issued formal warnings to electricity lines company Scanpower and gas distributor GasNet for failing to publish full asset management plans by their regulatory deadlines.
Scanpower and GasNet are both subject to information disclosure regulation under the Commerce Act, which requires electricity and gas network operators to provide the Commission and the public with information related to the performance and management of their networks.
Asset management plans contain detailed information on how gas and electricity businesses are managing the future maintenance and replacement of specific network assets.
Commissions Deputy Chair Sue Begg says both Scanpower and GasNet published full asset management plans only after the Commission informed them of their failure to comply. They have since acted to improve their governance to ensure they meet their obligations in the future.
“Scanpower and GasNet’s respective breaches result from a lack of due diligence in their governance as opposed to deliberate conduct. However, we are particularly disappointed with their non-compliance given the importance we place on good asset management practices,” she says.
The Commission intends to increase its scrutiny of companies’ information disclosure, both in terms of the accuracy of the information provided and its timeliness.
Copies of the warning letters can be found on the Commission’s case register.
Last updated on the 16th September 2019