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Home > Electricity > Structure of licence fees for the electricity gas and water and sewerage sectors
Structure of licence fees for the electricity gas and water and sewerage sectors

For the period 1 July 2017 to 30 June 2020

From 1 July 2017, 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 for the electricity, gas and water and sewerage sectors document, as published in March 2017. 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 2017 for the three industries:

Gas Licence Fees
Type of licence
Licence fee cost/basis for calculation
Gas pipeline licenceVariable fee based on regulatory effort (subject to adjustment)
Gas distribution licenceVariable fee based on regulatory effort (subject to adjustment)
Gas retail licenceVariable fee based on regulatory effort (subject to adjustment)
Gas pipeline (facility) licenceVariable fee based on regulatory effort (subject to adjustment)
Small LPG distributor$50
Small LPG retailer$50

Where a licensee has both construction and operations licences then only one annual fee is charged.

The Regulator is able to recover the costs of the Director of Gas Safety through licence fees and then remit those amounts to the Director of Gas Safety. Please note that the above listed licence fees only relate to the Regulator’s costs of administration of the Gas Pipelines Act 2000 and Gas Act 2000 (Gas Acts). The licence fee amounts will be increased as necessary to recover the costs of the Director of Gas Safety in administering the Gas Acts.


Electricity Licence Fees
Type of licence
Licence fee cost/basis for calculation
Generation - Installed generation capacity of 5MW or lessNo licence fee
Generation - Installed generation capacity of greater than 5MW and less than 30MW.Fixed fee of $5 000
Generation - Installed generation capacity of greater than or equal to 30MW.Fixed fee of $5 000 plus variable component (variable component subject to adjustment)
Distribution (TasNetworks)Distributor will meet Regulator’s budgeted expenditure on the distribution sector (subject to adjustment)
TransmissionVariable fee based on regulatory effort (subject to adjustment)
Hydro Tasmania for generation, distribution and retail operations on the Bass Strait Islands (BSI)Licensee will meet Regulator’s costs associated with BSI regulatory activities (subject to adjustment)

Water and Sewerage Licence Fees

Licence fees are 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.


Part year fees for new entrants

Licence fees for new entry entities in the electricity supply industry, gas industry, and water and sewerage industry will be determined by the Regulator on a case-by-case basis.











This page was last updated on 31 July 2017 by the Office of the Tasmanian Economic Regulator (OTTER). Questions concerning its content can be sent by mail to GPO Box 770, Hobart, TAS, Australia 7001 or by email to office@economicregulator.tas.gov.au or by telephone to (03) 6166 4422.

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