EXPLANATORY STATEMENT
Jervis Bay Territory Acceptance Act 1915
Administration Ordinance 1990
Electricity Supply Fees Determination 2011 (Jervis Bay Territory)
The Administration Ordinance 1990 was made pursuant to Subsection 4F(1) of the Jervis Bay Territory Acceptance Act 1915 (the Act) which provides that the Governor-General may make Ordinances for the peace, order and good government of the Jervis Bay Territory (the Territory).
Subsection 3B(1) of the Administration Ordinance 1990 enables the Minister responsible for Australia’s Territories to determine fees for the provision of utilities and services provided by the Australian Government in Jervis Bay Territory. The Minister has delegated the power to determine fees for these utilities and services to specific official positions within the Department of Regional Australia, Regional Development and Local Government (Department). The signatory of this Determination is such a delegate under the Territories Delegation Instrument made by the Minister on 6 December 2010.
The purpose of this Determination is to set the electricity fees for the Jervis Bay Territory. These fees take into account Government policy to deliver services to Jervis Bay Territory residents at a standard and cost that are based on general parity with those charged by electricity retailers in the surrounding region as approved by state and national regulators, and recovery of some of the costs of electricity provision. The Territory does not have an economy of scale to enable full recovery all the costs related to the provision of electricity.
Details of this Determination are set out in the Attachment.
This Determination revokes the Electricity Fee Determination 2009 (Jervis Bay Territory).
This Determination commences on 1 July 2011.
Consultation
The Department of Regional Australia, Regional Development and Local Government published in the Jervis Bay Territory Community Bulletin and the Department’s Internet, a notice of the proposed increase in fees and an invitation to comment on the proposal. The Bulletin was posted to all residents and electricity account holders in the Territory. It advised the availability of documentation supporting the fee increase such as a comparison of the new fees and what was in force at the time of consultation, and the draft Determination.
No submissions were received in response to the notice.
ATTACHMENT
DETAILS OF THE ELECTRICITY SUPPLY FEES DETERMINATION 2011
(JERVIS BAY TERRITORY)
Details of the Determination are as follows:
Section 1 of the Determination provides that it may be cited as Electricity Supply Fees Determination 2011.
Section 2 provides that the Determination commences on 1 July 2011.
Section 3 provides for the revocation of the previous Electricity Supply Fee Determination.
Section 4 defines the terms used in the Determination.
Subsection 5.1 provides that Schedule 1 determines fees for the supply of electricity. The following outlines how these fees are set:
- Domestic and General supply fees are based on equivalent electricity supply charges in the surrounding NSW region. NSW electricity supply charges are determined by the Independent Pricing and Regulatory Tribunal (IPART) and the Australian Energy Regulator.
- The Large Low Voltage (LV) industrial and 11kV time-of-use demand supply fees are calculated on the Department’s electricity purchase costs and a margin to transport the electricity from the NSW-Jervis Bay Territory border using Australian Government infrastructure.
Subsections 5.2 and 5.3 provide for rebates to electricity fees. The basis of these rebates is as follows:
- Given the general parity of domestic electricity charges with those of the surrounding region, the rebates available to Jervis Bay Territory residents are similarly drawn from those offered in NSW. The rebates available in Jervis Bay Territory have been structured to meet known requirements of Territory residents.
Section 6 provides that Schedule 2 determines miscellaneous fees for the supply of electricity.
The miscellaneous fees are based on recovery of direct costs incurred by the Department for services rendered under commercial contracts.
Section 7 provides the eligibility for 11 kilovolt time-of-use demand supply.
Section 8 provides the eligibility for LV industrial supply.
Section 9 provides for the period for payment.
Section 10 provides for action taken by the Department in the case of non-payment by the customer.
Section 11 provides for the requirement, use and refund of security deposits.
Jervis Bay Territory Electricity Fees (GST inclusive) comparison table:
When examining the fees below, it is important to note that both the 2009 and 2011 supply fees achieve general parity with those charged by electricity providers in the region at the time that each Determination was/is made. By comparison, the services or Other fees relate to the recovery of direct contracted-service costs incurred by the Department.
Material variances (>10%) occur mostly in access fees between 2009 and 2011. However, these have minimal impact in dollar value. For example, the access fee for domestic controlled off-peak supply increased by 33.33% from $0.033/day to $0.044/day which results in an increase of less than 70 cents over a two-month billing period.
The only electricity consumption-based fees that exceed a 10% increase are those for heavy industrial usage. These are the 11kV supply during peak and shoulder periods, and the Large Low Voltage (LV) supply. At this stage, there is only one user in both these categories.
Domestic supply
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | System access | 0.528000 for each day | 0.572000 for each day | 8.33 |
2 | First 1167 kWh for a 60‑day period | 0.195250 for each kWh | 0.208230 for each kWh | 6.65 |
3 | For the balance of all electricity supply | 0.212850 for each kWh | 0.230560 for each kWh | 8.32 |
Domestic supply controlled off‑peak
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | Off-peak access for off-peak 1 | 0.033000 for each day | 0.044000 for each day | 33.33 |
2 | Off‑peak 1 (up to 9 hours off‑peak supply daily) | 0.069300 for each kWh | 0.069410 for each kWh | 0.16 |
3 | Off-peak access for off-peak 2 | 0.033000 for each day | 0.044000 for each day | 33.33 |
4 | Off‑peak 2 (up to 18 hours off‑peak supply daily) | 0.107140 for each kWh | 0.110330 for each kWh | 2.98 |
General supply
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | System access | 0.594000 for each day | 0.704000 for each day | 18.52 |
2 | 3506 kWh for 60‑day period | 0.181500 for each kWh | 0.192280 for each kWh | 5.94 |
3 | For the balance of all electricity supply | 0.195030 for each kWh | 0.209550 for each kWh | 7.45 |
General supply controlled off‑peak
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | Off-peak access for off-peak 1 | 0.033000 for each day | 0.044000 for each day | 33.33 |
2 | Off‑peak 1 (up to 9 hours off‑peak supply daily) | 0.069300 for each kWh | 0.069410 for each kWh | 0.16 |
3 | Off-peak access for off-peak 2 | 0.033000 for each | 0.044000 for each day | 33.33 |
4 | Off‑peak 2 (up to 18 hours off‑peak supply daily) | 0.107140 for each kWh | 0.110330 for each kWh | 2.98 |
LV industrial supply
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) | |
1 | For all electricity supply | 0.132473 for each kWh | 0.160323 for each kWh | 21.02 | |
11kV time‑of‑use demand supply
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) | |
1 | Monthly fee | 7.88909 for each kVA | 9.6232 for each kVA | 21.98 | |
2 | For electricity supply during a peak period | 0.142619 for each kWh | 0.164498 for each kWh | 15.34 | |
3 | For electricity supply during a shoulder period | 0.135264 for each kWh | 0.155074 for each kWh | 14.65 | |
4 | For electricity supply during an off‑peak period | 0.057366 for each kWh | 0.062104 for each kWh | 8.26 | |
Connection of electricity supply — fees payable before connection
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | Security deposit — pensioners | 90.00* | 100.00* | 11.11 |
2 | Security deposit — customers other than pensioners | 180.00* | 200.00* | 11.11 |
3 | New account supply connection fee | 66.00 | 66.00 | 0 |
Note: * GST does not apply to security deposits, refer to Section 99-1, A New Tax System (Goods and Services Tax) Act 1999
Other fees
Item | Description | 2009 Fee ($) incl. GST | 2011 Fee ($) incl. GST | Variance (%) |
1 | Combined disconnection/reconnection fee — at the meter board | 132.00 | 132.00 | 0 |
2 | Combined disconnection/reconnection fee — at the pole or distribution pillar | 128.70 | 495.00* | 385 |
3 | Meter test requested by customer – charged per hour and minimum charge is for one hour | 66.00 | 66.00 | 0 |
4 | Extraordinary meter reading due to no access | 66.00 | 66.00 | 0 |
5 | Notice of disconnection delivery fee | 13.20 | 14.00 | 6 |
6 | Each customer requested change of off‑peak pricing option in excess of once in a 12‑month period | 66.00 | 66.00 | 0 |
Note: * Relates to a new contractor performing the task of disconnection and reconnection at the pole as an ad hoc function when directed.