11. Question No. 11—Energy and ResourcesJONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and ResourcesQuestion No. 11—Energy and Resources11. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources: Does she have confidence there will be no electricity security of supply issues in light of Transpower's advice to her that there is a risk of inadequate capacity" to meet demand over the period when the Pohukura Gas field is closed for maintenance and there are restrictions on the HVDC inter-island electricity transmission system?Hon Dr MEGAN WOODS (Minister of Energy and Resources): Yes. Transpower as the system operator monitors security of supply closely. These planned outages have been coordinated on the basis of this monitoring and Transpower's planning. The risks of inadequate capacity occurring have been highlighted in the worst-case scenarios modelling by Transpower. I am updated weekly on the current security of supply situation and note Transpower's latest advice is that there remains a low likelihood of any physical security of supply issues. In the event that this is an issue there are systems and processes in place to manage that. The current high-voltage direct current (HVDC) work has proceeded well and as expected. It expects that the HVDC will return to full capacity when the outages are completed ahead of Easter 2020. In the middle of 2019 I became aware there was a range of simultaneously planned outages for the first quarter of 2020. At that time I sought reassurance from Transpower that their planned outage coordination process would minimise the risks for consumers and for security of supply and Transpower later informed me that at least one planned outage had been rescheduled through this process and that the risks of security of supply were manageable. Subsequent to this I asked for assurance from the Electricity Authority (EA) that the planned outage coordination process was performing optimally and the EA and Gas Industry Co. subsequently began a review of the process which is currently under way. I can assure the member that this is something I have taken a great deal of interest in. SPEAKER: Before I ask the member to ask a supplementary question I will apologise for not informing the House that I had been warned that this was going to be a longer than normal answer and it certainly was. Jonathan Young: Thank you Mr Speaker. So despite that fulsome answer does she accept Transpower's advice that "inadequate capacity" is still a risk over this period? Hon Dr MEGAN WOODS: The member is quoting from a briefing that was in December. What I indicated in my primary answer is the latest information that I have from Transpower is that there remains a low likelihood of any physical security of supply issues and everything is proceeding according to plan. As I also indicated to the member this is something that I am briefed on weekly.Jonathan Young: Thank you. So is the Cabinet paper that was released last month that proposes she be granted emergency powers to reallocate electricity or gas in situations of acute shortage signalling that electricity shortages are something consumers should be concerned about?Hon Dr MEGAN WOODS: The Cabinet paper to which the member is referring is in no way connected to this event. What he is referring to is a suggestion of what possibly could be included in a future draft terms of reference not something that would be used in an occurrence such as this. What this Government has signalled however is that we will in the very near future be tabling amendments to the Gas Act so we can have full information disclosure during unforeseen and unplanned outages such as we saw in 2018 with the Pohokura pipeline. But the two events the member is referring to are unconnected. Kieran McAnulty: What are the systems and processes in place to manage physical security of supply events?Hon Dr MEGAN WOODS: If there were to be a security of supply event there are well-established systems to manage these. For managing gas security of supply the critical contingency management regulations provide for the management of situations such as unplanned gas production outages. An independent body is in place that has power to declare critical contingency events. Once those are declared a curtailment system will kick in. For electricity Transpower is responsible for ensuring that demand is met. Finally Transpower works closely with the upstream producers and thermal generator in performing its system operator role.Jonathan Young: Well if there are well-planned mechanisms in place to manage security of supply issues and outages why is she looking to have emergency powers to reallocate gas or electricity in situations of acute shortage given to the Minister of Energy and Resources?Hon Dr MEGAN WOODS: As I indicated in a previous supplementary to the member he is talking about two unconnected events. What he is referring to is a Cabinet paper which was on the recommendations of the electricity pricing review which was around institutional arrangements and how we may in some time in the future move towards an energy regulator rather than separate regulators for electricity and gas as is currently the model and what some of the rules within that might be. So I think the member's a little bit confused."