Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Z Energy in stoush over cost of ETS

Z Energy in stoush over cost of ETS

By Pattrick Smellie

Feb. 5 (BusinessDesk) - South Island mining OceanaGold Corp is refusing to pay for diesel it bought from Z Energy, which charged for the fuel based on a higher cost of the emissions trading scheme than the New Zealand-owned company actually pays.

Z's lawyers agreed in court the company had charged more than it paid for carbon costs under the ETS, but that there was "nothing wrong with this," according to a High Court judgment from Associate Judge David Gendall on the dispute.

Z had sought but was refused a summary judgment requiring OceanaGold to cough up close to $1.2 million more than the gold miner believes it should have to pay under its contract for supply.

The government's ETS, intended to price carbon and help control carbon emissions, sets a top price per tonne of carbon of $25, and makes Z liable to pay carbon costs on one in every two tonnes of carbon emitted.

However, carbon prices over the period of the contract in dispute were more in the region of $14 a tonne and OceanaGold claims Z is attempting to impose an additional element of "windfall" profit margin.

OceanaGold argues its contract specified a fixed margin, so the additional charge is unlawful under the contract.

The agreement terminated in May 2012, before global carbon prices collapsed further.

Justice Gendall said while Z regarded the issue as "a simple debt recovery exercise", OceanaGold argued "the supply agreement required pricing of the fuel to be 'detailed and transparent' and that although the plaintiff could recoup the actual underlying costs of supply of fuel… as those costs fluctuated over the life of the contract, (Z's) margin on the supply was visible and fixed."

The judge said OceanaGold contended Z "could not … by charging more for the ETS than it paid, obtain additional profit margin on its supply of fuel to (OceanaGold)."

Justice Gendall ruled the issue raised sufficient issues to mean a summary judgment was not warranted. The issue will go to a full hearing at a date to be determined.

Z Energy, formerly the domestic wholesale, retail and distribution arm of Shell New Zealand, is owned 50/50 by infrastructure group Infratil and the New Zealand Superannuation Fund.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news