Fees and Charges
Registration Fees
Under the Market Rules, fees are charged for registration of Participants and Facilities. The fees for registration (and other sundry matters) can be found here.
Information to be released on application
Under Market Rule 10.4, the IMO may charge a fee for provision of information, where that information is requested from the IMO.
Upon receiving a request for information under this Market Rule, the IMO will advise the relevant Participant of the fee for this service based on an estimate of the time required and an hourly charge.
Market Fees for 2010/11
The IMO is required to charge Market Fees in accordance with clause 2.24 of the Market Rules to recover the costs of:
- the IMO;
- System Management's wholesale market related functions; and
- Economic Regulatory Authority's wholesale market related functions.
The Market Fee rate for 2010/11 has been set at $0.551/MWh.
This fee will apply to all energy, including that sold/bought under bilateral contracts, from 1 July 2010.
In accordance with clause 9.13.1 of the Market Rules, the fee rate is based on spreading the total required revenue over both the total generation and the total consumption of electricity in the market.
There are two main variables in setting Market Fees. These are:
- Target Revenue (or budget) which needs to be set to adequately cater for the costs of the IMO, System Management and the ERA; and
- Forecast energy supply/consumption.
Revenue to be Recovered through Market Fees for 2010/11
The total revenue to be recovered through Market Fees is as follows:
| Total Revenue 2010/11 | (000) |
|---|---|
| IMO Revenue Requirement | 11,069 |
| SM Revenue Requirement | 6,878 |
| ERA Revenue Requirement | 1,376 |
| Total Revenue to be Recovered through Market Fees | 19,323 |
IMO 2010/11 Budget
Prior to 30 April 2010, the IMO submitted to the Minister its budget proposal for 2010/11 as part of its Operational Plan.
The 2010/11 budget was consistent with the Allowable Revenue approved by the ERA.
A revenue target of $11.069 million has been approved by the Minister to be recovered from Market Participants through Market Fees during 2010/11.
The breakdown of this budget into Market Operation, System Planning and Market Administration must be published with the publication of the Market Fee rate. This is as follows:
| Revenue Requirement 2010/11 | (000) |
|---|---|
| Market Operation | 6,630 |
| Market Administration | 2,700 |
| System Planning | 1,739 |
| TOTAL REVENUE REQUIREMENT | 11,069 |
System Management 2010/11 Budget
System Management's budget for 2010/11 of $6.878 million, which is consistent with the Allowable Revenue approved by the ERA, is to be recovered from Market Participant fees.
ERA 2010/11 Budget
The ERA Wholesale Electricity Market related costs of $1.376 million, as approved by the Government, are to be recovered from Market Participant fees.
Breakdown of Market Fees for 2010/11
The Market Fee rate is structured in three parts to provide transparency of fee rates related to the IMO, System Management and the ERA.
Spreading the total revenue requirement over the projected energy supply and consumption of 35,034 GWh in 2010/11 produces the following fee rates:
| Fee Type | Fee Rate $/MWh |
|---|---|
| IMO Fee Rate | 0.316 |
| System Management Fee Rate | 0.196 |
| Economic Regulation Authority Fee Rate | 0.039 |
| Total Market Fee Rate | 0.551 |
This document is published in accordance with Market Rule 10.5.1 (u).