Economic Regulation Authority (Licensing Funding) Regulations 2014

regulations 1 and 2 — on the day on which these regulations are published in the Gazette;

the rest of the regulations — on 1 January 2015.

In these regulations —

are incurred by the Authority in the quarter in connection with the performance of its licensing functions; and

cannot be recovered through the imposition of specific charges or annual licence charges;

an electricity distribution licence;

an electricity generation licence;

an electricity retail licence;

an electricity transmission licence;

an integrated regional licence;

a gas distribution licence;

a gas trading licence;

a water services licence;

the rate quoted on Reuters Screen BBSW as the Bank Bill Reference Rate (Mid Rate) for a one month bill at or about 10 a.m. (Sydney time) on the first day after the allowed period; or

if a rate is not quoted as described in paragraph (a) — the rate determined by the Authority having regard to comparable indices then available;

For the purposes of regulations 6 and 7, an integrated regional licence is to be treated as if it were separate licences, one for each activity (described in the Electricity Industry Act 2004 section 4(1)(a), (b), (c) or (d)) authorised under the licence.

The following functions of the Authority are listed for the purposes of this regulation —

dealing with an application under the Electricity Industry Act 2004 for the grant, renewal or amendment of a licence or approval to transfer a licence;

dealing with an application under the Energy Coordination Act 1994 for the grant, renewal or amendment of a licence or approval to transfer a licence;

dealing with an application under the Water Services Act 2012 for the grant, renewal, amendment or cancellation of a licence or the approval of the transfer of a licence.

If the Authority performs a function listed in subregulation (1), the applicant is liable to pay a charge for the performance of the function.

The Authority must give the applicant a notice that specifies —

the amount of the charge; and

the day on which the notice was issued.

The amount specified in the notice is payable to the Authority within 30 days after the day on which the notice was issued.

The amount of the charge is an amount equivalent to the costs described in subregulation (6) that —

have been incurred by the Authority; and

are directly attributable to the performance of the function or to the doing of anything that was necessary or convenient to be done for or in connection with the performance of the function.

For the purposes of subregulation (5), the costs are —

costs of consultants or contractors engaged by the Authority including accommodation costs, travel costs and equipment costs; and

photocopying, mailing, publishing and advertising costs; and

costs associated with public consultation conducted under the Act under which the application was made; and

costs associated with producing or amending maps of areas to which the licence, or proposed licence, relates.

The Authority must, at the request of the applicant, give the applicant an itemised account of the costs covered by the charge.

If the applicant does not pay the amount of the charge in full within the allowed period, interest on any outstanding amount is payable to the Authority at the prescribed rate calculated daily.

A person may, before making an application referred to in regulation 4(1) (the proposed application), request from the Authority an estimate of the amount of the charge for dealing with the proposed application.

The Authority must, if there is sufficient information about the proposed application to make an estimate, give the person an estimate of the charge within 7 days after the day on which the request was made.

The Authority is not bound by an estimate.

A licensee is liable to pay an annual licence charge, for each licence held by the licensee, in connection with the performance of the Authority’s licensing functions under the Act under which the licence is held.

The annual licence charge for a licence is —

for an electricity distribution licence — $2 732;

for an electricity generation licence — $2 406;

for an electricity retail licence — $3 416;

for an electricity transmission licence — $2 406;

for a gas distribution licence — $2 778;

for a gas trading licence — $3 105;

for a water services licence — $2 885.

The annual licence charge is payable to the Authority —

within one month after the day on which the licence was granted; and

within one month after each anniversary of that day.

If a licensee does not pay an annual licence charge in full within the allowed period, interest on any outstanding amount is payable to the Authority at the prescribed rate calculated daily.

In this regulation —

For each quarter and for each licence in effect during any period in the quarter, a charge is payable in connection with the core function costs for the quarter.

The charge is payable by the licensee.

The amount of the charge is determined in accordance with the following formula —

If the licensee did not hold the licence for the whole of the quarter, the charge is reduced by the proportion of the quarter during which the licensee did not hold the licence.

If —

the licence was granted, or ceased to have effect, during the quarter; and

the charge payable for the licence is reduced under subregulation (5),

In subregulation (6) —

If the licence was granted after the end of the financial year immediately preceding the quarter, the number of units to be used for the purposes of the variables U_L and U_T in subregulation (4) is the number specified in the licence.

As soon as is practicable after the end of each quarter the Authority must —

assess the standing charge payable by a licensee for the quarter in respect of a licence; and

give a notice of assessment to the licensee specifying —

the amount of the charge payable; and

the amount of the core function costs used in calculating the charge; and

the day on which the notice of assessment was issued.

The amount specified in the notice is payable to the Authority within 30 days after the day on which the notice was issued.

If the licensee does not pay the amount specified in the notice in full within the allowed period, interest on the outstanding amount is payable to the Authority at the prescribed rate calculated daily.

The Authority must, at the request of the licensee, give the licensee a written explanation of how the core function costs specified in the notice were calculated, including reasonable details of what the core function costs relate to.

The Authority may recover a charge that is unpaid in whole or in part, together with any interest payable, in a court of competent jurisdiction as a debt due to the Authority.

In proceedings under subregulation (1) a certificate —

purporting to be signed by the chairman; and

specifying an amount as being all or part of a specific charge, annual licence charge or standing charge; and

specifying an amount as being interest payable under regulation 4(8), 6(4) or 8(3); and

specifying a person as being liable to pay the specified amounts; and

stating that the specified amounts are unpaid,

the total amount of specific charges paid or payable by each licensee;

the total amount of standing charges paid or payable by each licensee.