Australian Capital Territory

Utilities (Annual Licence Fees Determination 2015-16) Notice 2015 

Notifiable Instrument NI2015-563

made under the
Utilities Act 2000, s 52 (Public notice of licence decisions) (see also s 45 (Determination of fee) and s 53 (Public access to licences etc))
EXPLANATORY STATEMENT

Section 45(1) of the Utilities Act 2000 (Utilities Act) gives the Independent Competition and Regulatory Commission (Commission) the power to determine the annual licence fee payable by each utility licensed to provide a utility service in the ACT. 

Section 52(1)(i) of the Utilities Act requires the Commission to prepare a notice upon making a determination of a fee under section 45. The notice is a notifiable instrument.

The Commission notes the increase in total regulatory costs estimated for 2015-16 on the actual costs for 2014-15. This increase in costs is primarily attributable to an increase in technical regulation costs and associated work load for 2015-16. Technical regulation has stated that the increase in expenditure for 2015-16 relates mainly to an increase in contractor costs and audit work. This will be followed by a decrease in expenditure and workload for the 2016-17 year.

The three licensees subject to an annual licence fee are:

•	East Australia Pipe Line Limited (gas transmission services);
•	Icon Water Limited (water and sewerage services); and
•	TransGrid (electricity transmission services).

The licence fee payable by each licensed utility is the amount considered by the Commission to be a reasonable contribution towards the costs incurred, or expected to be incurred for 2015-16 in relation to the regulation of utility services provided by the licensees by:

•	the Independent Competition and Regulatory Commission, 
•	the technical regulator; and 
•	the ACT Civil and Administrative Tribunal.