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 2017-18 are:

  • Ausgrid - 1,019,000
  • Endeavour Energy - 682,000
  • Essential Energy - 659,000
  • TransGrid - 669,000

The licence fees reflect the cost to IPART of administering our compliance function.

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, annual gas authorisation and licence fees are determined on the following basis;

  • Reticulator Authorisation:  A fixed fee of $1,000 plus a variable fee based on each reticulators share of the total pipeline length in NSW. Only those reticulators with more than 250 km of pipelines are charged the variable component.
  • Distributor Licence:  A $200 fixed fee only.

Fees for 2012-13 were as follows;

  • Total reticulators' fees were $511,800
  • Total distributors' fees were $1,000

All fees are GST exempt.

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