Fees and costs associated with obtaining and holding a licence include:
The application fee for a network operator’s licence is $2,500.
The application fee for a retail supplier’s licence is $2,500.
If you are applying for both a network operator’s licence and a retail supplier’s licence, the fee is $5,000.
Annual licence fees
For licensed retail suppliers, annual licence fees vary according to average daily throughput. Fees range from $1,000 for “small” scale schemes to $6,000 for “large” scale schemes.
For licensed network operators, fees vary according to the volumetric capacity of the supply of the infrastructure to which their licences relates. Fees range from $2,000 for “small” scale schemes to $9,000 for “large scale” schemes.
Audit costs vary, but usually represent the bulk of compliance costs for licensees.
Please note that audits are required to determine:
- the adequacy of your licence plans
- whether the infrastructure is capable of operating safely and in accordance with your licence plans before it is brought into commercial operation (for licensed network operators only) and
- ongoing compliance (once licensed).
We understand that a compliance audit of a complex scheme can cost approximately $30,000.
Insurance report costs
Applicants for new schemes and licensees of existing schemes must provide a report from an insurance broker who holds an Australian financial services licence under Part 7.6 of theCorporations Act 2001 (Cth) that authorises the broker to provide financial product advice for, and deal in, contracts of insurance within the meaning of Chapter 7 of that Act. This report is required at the time of application (for new schemes) or within 6 months of being licensed (for existing schemes). The cost of obtaining such a report will vary according to the circumstances, but we understand it may cost approximately $10,000 - $15,000 to obtain.
Ombudsman scheme membership fees
A licensed retail supplier supplying water or providing sewerage services to small retail customers is required to join an approved ombudsman scheme. This requirement also applies to certain licensed network operators.
Licensees should contact the Energy & Water Ombudsman NSW (opens in a new window) (EWON) to determine what membership and usage fees apply.