The Terms of Reference for the Fuel market Financial Performance Study Energy have been released today, says Energy and Resources Minister Judith Collins.
The Study, being undertaken by the Ministry of Business, Innovation and Employment, will take an in depth look at fuel company finances to determine if the price New Zealanders are paying at the pump is reasonable.
“Petrol and diesel are fundamental to New Zealander households and businesses and I am concerned that the difference between what fuel is imported and sold for (fuel margins) has steadily increasing over a number of years.
“We need to know why this is happening and determine if what people are paying at the pump is reasonable or whether companies are making super-normal profits.
“This study will offer new insights into our fuel sector and help us understand if there is an issue and, if there is, show where we need to focus to address it.
The Fuel Market Financial Performance Study will look specifically at returns on capital employed of the major businesses at different parts of the value chain. These returns will then be assessed against an appropriate cost of capital and compared with fuel suppliers in other countries.
The Study will also consider margins and other market performance measures as another way of providing insight into industry profitability.
“This is a technical study but I do expect some observations to be made about regional price differences.
“I am pleased that the companies involved – Z Energy, BP, Mobil and Gull – have all said that they will co-operate with MBIE. The companies were also consulted on the Terms of Reference,” Ms Collins says.
The Fuel Market Financial Performance Study is expected to be completed by June.Related Documents
Terms of Reference into Fuel Price Inquiry (pdf 353.62 KB)
| A Beehive release | February 24, 2017 ||
New freshwater reforms will result in 56,000 km more fences protecting New Zealand waterways from stock – enough to go round the world one and a half times, says Primary Industries Minister Nathan Guy.
The new rules on stock exclusion are part of the Government’s plans announced today setting a target for 90% of rivers and lakes to be swimmable by 2040.
“Farmers have made huge progress in recent years to improve their environmental practices and this will be another important step forward. Dairy farmers have already voluntarily fenced off over 24,000km of waterways,” says Mr Guy.
“We know that stock standing in or regularly crossing waterways can do significant damage. While dairy farmers have voluntarily fenced off around 96% of their waterways, we want to extend this to other types of farms as well.
“The proposed national regulation would ensure that dairy cattle, beef cattle, pigs and deer are kept out of waterways.
“We need to ensure the changes are practical for farmers, so the exclusions would be implemented in a staged process starting this year through to 2030, depending on the stock type and land slope.
“There are long term benefits for the primary industries and wider economy from these reforms. Overseas markets and consumers increasingly demand a strong environmental performance over and above regulatory requirements. In this context, protecting New Zealand’s natural advantage has never been more important.
“No single organisation or group is solely responsible for improving our water quality. Meeting the target will take a collective effort, but the primary industries have a key contribution to make.
“In the meantime, the Ministry for Primary Industries continues to work with the primary sectors to invest in good ideas which promote environmental best practice. One example is the Farm Systems Change program, which identifies high preforming farms and uses farmers’ networks to spread their knowledge.
“Another is a major programme under the Primary Growth Partnership, called Transforming the Dairy Value Chain. Under this programme effluent management systems have been improved, and every region now has a riparian planting guideline developed in conjunction with regional councils.
“As a Government we are committed to growing the primary industries at the same time as improving water quality. Water storage schemes like Central Plains Water and the Waimea Community Dam help in this by taking pressure off groundwater sources and maintaining summer river flows, delivering both economic and environmental benefits.
“We also know that science will play a major role in improving our freshwater. The ‘Our Land and Water’ National Science Challenge is investing $96.9 million over 10 years into this, hosted by AgResearch and involving six other Crown research institutes.
To read the proposals, and find out how to have your say, visit www.mfe.govt.nz
The Energy Efficiency and Conservation Authority (EECA) today opened the latest funding round for Crown loans to support energy efficiency and renewable energy projects across public sector organisations
EECA Business General Manager Greg Visser said public sector organisations could access interest-free loans to invest in energy efficiency improvements and renewable energy technology.
“The opportunities are many and varied. A hospital may swap environmentally unfriendly boilers for heat pumps, a polytech might retrofit super-efficient LED lights, or a council might receive assistance to invest in electric vehicles,” Mr Visser said.
“Invariably, entities such as hospitals and universities have higher priorities than saving energy. But these targeted, interest-free loans mean funding is not diverted from core priorities. Indeed, ongoing energy savings allow more money to go into those priority needs.”
In a previous funding round, Southern District Health Board got funding to upgrade energy management systems at Southland Hospital using a combination of Crown loans and EECA funding. The project will create energy cost savings of $138,000 and carbon reductions of 1,350 tonnes a year.
“It is well known that many hospitals need to allocate almost all available funds to cliniThis email address is being protected from spambots. You need JavaScript enabled to view it.cal services. We know from previous funding rounds that many projects would never have got off the ground without Crown loans,” Mr Visser said.
EECA research shows that public sector organisations, just like any business, can save up to 20% of the energy they use through smarter energy use. That can have a big impact on energy bills. There are also other benefits such as improved patient comfort through better building lighting and heating and cooling.
EECA can also use its expertise in energy efficiency to help Crown entities develop an energy management plan across all its parts so there is a long-term focus on energy management and savings.
Mr Visser said the loans are a great chance for public sector organisations to be innovative and prioritise energy management. The latest round, totalling $2 million, closes on 31 March.
In the past five years, 38 public sector projects have received Crown loans, resulting in cumulative savings of $9 million and carbon reductions of over 5,000 tonnes each year.
| An EECA release | February 24, 2017 ||
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Early adopters of new technology that cuts energy use or carbon emissions can get support for their innovative project in a new funding round announced by the Energy Efficiency and Conservation Authority (EECA) today.
EECA provides support towards the cost of energy saving or renewable energy technology that has yet to be widely adopted in New Zealand.
“We are looking to support technology that is innovative, under-utilised or has not been applied in the New Zealand environment,” said EECA Project Manager, Dinesh Chand.
“We are looking to support pioneering projects that can be replicated by other companies so that energy savings go beyond the innovator.”
“Replication potential of projects like this is important. The support is provided to help share the risk for the early adopter. There is a national advantage if energy-saving technology is successful and if others take it up.”
Funding for both capital and showcasing the technology can cover up to 40% of the project costs to a maximum of $100,000.
The Technology Demonstration Programme is part of EECA’s work with business to promote energy efficiency and renewable energy.
To qualify for funding, projects must reduce energy intensity or greenhouse gas emissions, be applicable to multiple businesses in a sector, and must be financially viable, with a reasonable payback period.
“Applicants must also commit to having their project independently monitored and to promoting the project and the outcomes from it,” Mr Chand said.
A standout project from the previous funding round was Ports of Auckland Ltd (POAL), which received funding to install LED floodlighting, the first New Zealand port to do so.
While LED lighting has been around for some time, the lighting intensity and reliability suitable to the harsh port environment had not been up to the mark.
“We can’t wait to demonstrate the effectiveness of LED floodlighting at our port,” said Ports of Auckland CEO Tony Gibson, who has set the goal of POAL becoming New Zealand’s most sustainable port.
“This is a very exciting project and it really is just the start of what we hope to achieve through new technology.”
Mr Chand hopes and expects other New Zealand ports will follow POAL’s lead.
Businesses or organisations wishing to apply for funding to develop a demonstration project can do so either through a technology supplier registered with EECA or by completing and returning the technology demonstration application form available on the EECA Business website at: https://www.eecabusiness.govt.nz/funding-and-support/technology-demonstration-projects/
| An EECA release | February 24, 2017 ||
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Ξ Funding available for early adopters of energy-saving technology
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Cadpro's Matthew Weake spends a fair bit of time on the factory floor so this gives him a pretty good idea of how smoothly or otherwise an operation is running.
Here are a couple of examples of what he has come away with from recent visits:
Hi MaxIn the past few weeks 2 company visits really stood out for me – Metro Glass and Sistema. Metro process raw glass sheets into finished panels with laminating, printing, double glazing units, tempering etc. They use a range of automation equipment from robots to waterjet cutters. What really impressed me was the way they have worked out to track complex jobs through production in a timely manner.Sistema has been in the new of late with the change in ownership and they deserve the credit they have been given. It appears that they use as much local expertise as they can before heading off-shore in their automation processes and suppliers.I’m always interested in the design side of things but invariably the conversations lead to data management and workflows through factories.
It is really refreshing to see local companies doing significant manufacturing here and doing it well with a focus on continuous business improvement.
Cheers for now
Matthew
Matthew Weake BE(Mech)(Hons)Mechanical & Manufacturing Sales
CADPRO Systems LtdPhone: +64 9 302 4028Mobile: +64 274 820 845Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242