Licence fees (or equivalent) enable the Regulator to recover its reasonable costs in the administration of the relevant sector-based legislation, where those costs have not been funded by the Consolidated Fund or licensees directly.
The Tasmanian Electricity Code (the Code) requires the Regulator to develop an electricity licence fee structure that is consistent with a set of principles set down in the Code and sets out how licence fees will be determined.
The structure of electricity licence fees is reviewed periodically. The most recent review was conducted by the Regulator in early 2020.
The Regulator also sets licence fees for gas industry participants and is required to provide advice to the Minister for Primary Industries and Water on the Regulator's component of the licence fees to be paid by TasWater.
In cases where the fee, or part of the fee, is based on regulatory effort, this refers to the Regulator’s regulatory activities with respect the particular entity, except in cases where the regulatory activities apply to all entities in a particular sector, such as the annual Energy in Tasmania reports, in which case the costs are allocated to all relevant entities.
For the period 1 July 2020 to 30 June 2025
From 1 July 2020, the Regulator will set licence fees in the electricity supply industry and its component of licence fees in the gas and water and sewerage sectors using the methodology contained in the Regulator's Structure of Licence Fees document, as published in March 2020. For further information on the development of the structure of licence fees click here.
Below is a summary of annual licence fees applicable from 1 July 2020 for entities in these three industries:
Gas Licence Fees
Small LPG distributor or distributor: $50.
All other gas licensees: total licence fee payable comprises of two components - a fixed fee of $1 000, and a variable fee based on regulatory effort (subject to adjustment).
If required by legislation, the Regulator will increase the licence fee amounts to entities in the gas industry to recover the costs of the Director of Gas Safety, and then remit those amounts to the Director of Gas Safety.
Electricity Licence Fees
|Type of electricity licence||Licence fee cost/basis for calculation|
|Generation - Installed generation capacity of 5MW or less||No licence fee|
|Generation - Installed generation capacity of greater than 5MW||Fixed fee of $1 000 plus variable component based on expected regulatory effort|
|Distribution (TasNetworks)||Variable fee based on expected regulatory effort in areas where the Regulator has regulatory functions|
|Transmission (TasNetworks)||Variable fee based on expected regulatory effort in areas where the Regulator has regulatory functions|
|Hydro Tasmania for generation, distribution and retail operations on the Bass Strait Islands (BSI)||Variable fee based on expected regulatory effort associated with BSI regulatory activities|
Water and Sewerage Licence Fees
TasWater's licence fee is determined by the Minister responsible for the Water and Sewerage Industry Act 2008 (the Act) and are an amount that the Minister considers to be a reasonable contribution towards the cost of administering the Act. That amount includes the costs to be incurred by the Regulator in administering the Act, the costs incurred by the Ombudsman in investigating complaints, and the costs that arise from the regulation, by prescribed persons, of activities specified in the licence.
For further information on the development of the structure of licence fees click here.
Previous licence fee arrangements
Structure of Licence Fees (1 July 2017 to 30 June 2020) (141Kb)
Structure of Licence Fees (1 July 2014 to 30 June 2017) (282Kb)