Scanpower and GasNet warned for breaching information disclosure requirements
Published28 Nov 2018
The Commerce Commission has issued formal warnings to Dannevirke-based electricity lines company Scanpower and Whanganui-based 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.
Deputy Chair Sue Begg said 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,” Ms Begg said.
Given this was the first breach of the regulations by each business, and their positive responses to the Commission’s concerns, the Commission considers warning letters to be the most appropriate form of action. Such warnings are taken into account by the Commission in the event of any future non-compliance.
“We also would like to remind all of the regulated businesses that they need to take their information disclosure obligations seriously. Failing to comply is a breach of the Commerce Act and can lead to court proceedings and a subsequent financial penalty,” Ms Begg said.
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.