Licence fees

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Electricity licence fees

The Minister for Resources and Energy issues licences for the transmission and distribution of electricity in NSW, and IPART administers the licensing regime on behalf of the Minister, a task which includes administration of licensing fees. Each year, IPART makes a recommendation to the Minister, and the Minister determines the annual licence fees. 

The licence fees for 2018-19 are:

  • Ausgrid - $1,040,000
  • Endeavour Energy -$696,000
  • Essential Energy -$672,000
  • TransGrid - $682,000

We calculated the licence fees in accordance with the method we developed in 2016.

Development of the licence fee calculation methodology

In 2016 we developed a methodology to calculate the appropriate fee levels. This review has been completed and IPART has made its recommendations for fees to be charge in 2016-17 to the Minister for Resources and Energy (Minister). Our final report includes the recommended fees and explains our methodology.

During April and May 2016, we sought submissions on a Draft Report on our review of Licence Fees.  This process has concluded. 

See submissions received below:

10 May 2016 - Ausgrid - W16/2283 - T. Armstrong
13 May 2016 - Endeavour Energy - W16/2282 - R. Howard
13 May 2016 - TransGrid - W16/2280 - P. Italiano
24 May 2016 - Essential Energy - W16/2281 - G. Humphreys (Please note subsequent information and a correction to this submission was provided on 2 June 2016.)

We will review this methodology in 2019-20. Until then, the fees will be escalated annually by Sydney CPI and adjusted by IPART’s annual productivity factor, and we will make our recommendation to the Minister in June each year.

Gas licence fees

Under the Gas Supply Act 1996, the Minister for Energy determines licence fees for holders of gas distribution licences and gas reticulation authorisations.  These are based on the NSW Treasurer’s estimate of the cost incurred by the State in relation to each licence or authorisation holder. IPART provides the estimated costs and recommended fees to the Treasurer each year.

The Minister approved the following fees for 2015-16:

Gas distributors:

Elgas Ltd $200.00 
Elgas Reticulation Pty Ltd $200.00 
Origin Energy LPG Pty Ltd $200.00 
Westfarmers Kleenheat Gas Pty Ltd $200.00 

Gas reticulators:

Actew AGL Distribuiton $11,826 
APT Allgas Energy Ltd $1,514 
Australian Gas networks (Albury) Pty Ltd  $12,678 
Australian Gas networks (NSW) Pty Ltd $21,098 
Central Ranges pipeline Pty Ltd $4,636 
Jemena Gas Networks NSW $431,523
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