Licence fees

Electricity licence fees

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 2023-24 are:

• Ausgrid - $600,000
• Endeavour Energy -$479,000
• Essential Energy -$528,000
• Transgrid - $440,000

We calculated the licence fees in accordance with the method we developed in 2021.

The licence fee calculation methodology

We published a final report in June 2016, which outlines the previous methodology used to calculate electricity licence fees from 2016–17.

In 2021 we reviewed the methodology to calculate licence fees. Our final report explains the revised methodology that we will use to recommend licence fees to the Minister from 2021–22.

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:

Gas reticulators: