Under the Electricity Supply Act 1995, the Minister for Energy and Environment is responsible for issuing licences for the transmission and distribution of electricity in NSW. IPART administers the licensing regime on behalf of the Minister, a task which includes administration of licence fees. Each year, IPART makes a recommendation to the Minister, and the Minister determines the annual licence fees.
The licence fees for 2019-20 are:
We calculated the licence fees in accordance with the method we developed in 2016 (which is discussed below).
In 2016, we conducted a review of the previous methodology used to calculate electricity licence fees. We published a final report in June 2016, which includes a recommendation for 2016-17 fees, and details of the methodology developed to calculate licence fees until 2019/20.
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: