Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698838626503.pdf (New Zealand)
Electricity (Levy of Industry Participants) Regulations 2005 (SR 2005/72) Pursuant to sections 172ZC and 172ZE of the Electricity Act 1992, Her Excellency the Governor­General, acting on the advice and with the consent of the Executive Council and on the recommendation of the Minister of Energy, makes the following regulations.
Contents Title Commencement Application Part 1 Interpretation and general rules Interpretation Overview of these regulations How and when levy must be paid Part 2 Calculations, adjustments, and reconciliations Initial calculation of annual levy rates Calculation of annual levy rates Notiﬁcation of annual levy rates Calculation of monthly instalments Calculation of each participant’s monthly instalment Adjustments to annual levy rates during ﬁnancial year 10 Levy rates may be adjusted during ﬁnancial year Note These regulations are administered in the Ministry of Economic Development.
Page 2 2 2 3 7 7 8 11 11 13 1 r 1 11 12 13 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 Reconciliation of levy after end of ﬁnancial year Reconciliation of levy after end of ﬁnancial year on basis of actual numbers Reconciliation of levy after end of ﬁnancial year on basis of reconciled ﬁgures Refunds and further invoices Part 3 Transitional and miscellaneous provisions Transitional provisions 14 Recovery of costs of additional activities Revocation 15 Revocation 14 14 15 15 16 Title These regulations are the Electricity (Levy of Industry Partici­ pants) Regulations 2005.
Commencement These regulations come into force on the 28th day after the date of their notiﬁcation in the Gazette.

Application These regulations apply to the ﬁnancial year ending 30 June 2005 and subsequent ﬁnancial years.
The levy rate for the ﬁnancial year ending 30 June 2005— (a) includes the costs of performing the Commission’s ini­ tial functions, duties, and powers under the Act from 1 July 2004: includes the Commission’s costs in relation to the Whirinaki contract from the later of the commence­ ment date of that contract and 18 October 2004 (which was the date on which the Electricity Amendment Act 2004 came into force): includes the costs of performing the Commission’s other new functions, duties, and powers under the Act from 18 October 2004.
(b) (c) 1 2 3 (1) (2) 2 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 1 r 4 (3) 4 (1) The levy rate for the ﬁnancial year ending 30 June 2006 and subsequent ﬁnancial years also includes the costs referred to in section 172ZC(1A)(b) of the Act in respect of the MACQS reform operations.
Part 1 Interpretation and general rules Interpretation In these regulations, unless the context otherwise requires,— Act means the Electricity Act 1992 associate has the same meaning as in the Electricity Industry Reform Act 1998 Commission means the Electricity Commission continued under subpart 1 of Part 15 of the Act common quality operations means the activities of the Com­ mission that relate to— (a) (b) Part C, Common Quality, of the rules: Part I, Transition, of the rules, excluding that part that relates to the transition from NZEM and MARIA consumer connection,— (a) in relation to a distributor, means the total number of “ready” and “active” ICPs for that distributor; and in relation to a retailer, means the total number of “ready” and “active” ICPs for that retailer,— (b) as “ready”, “active”, and “ICP” are deﬁned in Schedule E2 of Part E of the rules direct consumer has the same meaning as in the rules distributor means a person who supplies line function ser­ vices to any other person or persons electricity conveyed,— (a) in relation to the grid, means the quantity of electricity injected at grid injection points; and in relation to a local network, means the quantity of electricity entering the network at grid exit points and at points of connection with embedded networks and at points of connection with embedded generating sta­ tions; and (b) 3 Part 1 r 4 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 (c) (d) in relation to an embedded network, means the quantity of electricity entering the network at points of connec­ tion with a local network and at points of connection with other embedded networks and at points of connec­ tion with embedded generating stations; but does not include any quantity of electricity that is con­ veyed by a distributor for its own consumption or for the consumption of its associates electricity efﬁciency operations means the activities of the Commission that relate to promoting and facilitating the efﬁ­ cient use and
 conservation of electricity electricity generated, in relation to a generator,— (a) means the quantity of electricity sold by the generator (b) to the clearing manager or to a retailer; but does not include the quantity of electricity generated by an embedded generating station that has a rated elec­ tricity generating capacity of less than 10 MW in the station’s asset capability statement electricity purchased, in relation to a purchaser,— (a) means the quantity of electricity purchased from the clearing manager by the purchaser at all grid exit points; and includes the quantity of electricity purchased from an embedded generator at a point of connection to a local network (b) embedded generating station has the same meaning as in the rules embedded generator has the same meaning as in the rules estimated Commission costs means an amount that— (a) estimates the costs, net of the income, of performing the Commission’s functions, powers, and duties under the Act and the cost of collecting the levy for the ﬁnancial year, exclusive of any goods and services tax; but does not exceed the appropriation for the ﬁnancial year in respect of the performance of the Commission’s func­ tions, powers, and duties under the Act and the cost of collecting the levy, exclusive of any goods and ser­ vices tax, where “appropriation” includes the following (b) 4 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 1 r 4 amounts at the time of the calculation under regulation 7: (i) any existing appropriation or other authority by or under an Act; and any appropriation sought in an Appropriation Bill and set out in the Estimates (ii) ﬁnancial year means the year beginning on 1 July and ending with the following 30 June generator means an industry participant who sells electricity to the clearing manager or to a retailer grid has the same meaning as in the rules industry participant has the same meaning as in section 2(1) of the Act initial
 functions, powers, and duties means the functions, powers, and duties of the Commission that were provided for in the Electricity Amendment Act 2001 levy means the levy prescribed by these regulations levy rate or annual levy rate means the rate calculated under regulation 7 or the rate as adjusted under regulation 10 or the rate under regulation 11, as the case may be MACQS reform operations means the activities of Trans­ power in relation to the MACQS reform process (including establishment of MACQS, grid security committee costs, and related rule development) market operations means the activities of the Commission that relate to— (a) (b) (c) (d) Part D, Metering Arrangements, of the rules: Part G, Trading Arrangements, of the rules: Part H, Clearing and Settlement, of the rules: Part I, Transition, of the rules, in so far as that Part relates to the transition from NZEM and MARIA Minister means the Minister of Energy month means a calen­ dar month monthly instalment means the monthly instalment of the an­ nual levy that is payable under regulation 6 new functions, powers, and duties means the new functions, powers, and duties of the Commission that were provided for in the Electricity Amendment Act 2004 5 Part 1 r 4 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 other activities means the functions, powers, and duties of the Commission under the Act other than the activities of com­ mon quality operations, market operations, registry and con­ sumer operations, supply security operations, transmission op­ erations, and electricity efﬁciency operations, and includes— (a) monitoring and enforcement of the rules by the Com­ mission, the Rulings Panel, and any investigator ap­ pointed under the Electricity Governance Regulations 2003: the costs of collecting the levy: advice provided to the Minister under section 172O of the Act (b) (c) purchaser means an industry participant who purchases elec­ tricity from the clearing
 manager or from an embedded gener­ ator quantity of electricity means the quantity of electricity gen­ erated, purchased, or conveyed, as the case may be, as recon­ ciled in accordance with the rules registry and consumer operations means the activities of the Commission that relate to— (a) Part E, Registry Information and Customer Switching, of the rules: consumer protection (b) retailer means a purchaser who supplies electricity to a con­ sumer, and includes an independent retailer and an incumbent retailer rules means the rules called the Electricity Governance Rules made by the Minister under section 172H of the Act supply security operations means the activities of the Com­ mission that relate to its reasonable endeavours to ensure se­ curity of electricity supply transmission operations means the activities of the Commis­ sion that relate to Part F, Transport, of the rules Whirinaki contract means the contract between the Commis­ sion and the Crown providing for the power station located at Whirinaki, and the associated assets, rights, and liabilities, to be available for the purposes of reserve energy.
6 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 1 r 6 (2) Any term or expression that is deﬁned in the Act or the rules, and used, but not deﬁned, in these regulations, has the same meaning as in the Act or the rules.

5 (1) (2) 6 (1) (2) (3) (4) Overview of these regulations Each generator, purchaser, and distributor is liable to pay a levy to the Commission on behalf of the Crown.
The levy— (a) must be initially calculated under regulations 7 and 9 (which provide for calculation on the basis of esti­ mated costs, except insofar as the levy relates to the MACQS reform operations); and (b) may be adjusted under regulation 10 (for example, if estimated Commission costs increase or decrease or if a different quantity of electricity is generated, purchased, or conveyed than anticipated); and (c) must be reconciled against the levy that would have been payable after the end of the ﬁnancial year under regulation 11 or regulation 12.
How and when levy must be paid The annual levy is payable to the Commission in monthly in­ stalments in arrears.

Each person who is a generator, purchaser, or distributor at the end of a month during a ﬁnancial year is liable to pay a monthly instalment of the levy for that month to the Commission.

The Commission must invoice industry participants for each monthly instalment as soon as practicable after the start of the following month.
The due date for payment of each monthly instalment is the later of— (a) the tenth working day after the industry participant re­ ceives an invoice for that monthly instalment; or the 20th day of the month following the month to which the instalment relates.
(b) (5) The Commission may waive the payment of 1 or more monthly instalments if the Commission considers that the 7 Part 2 r 7 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 cost of invoicing the industry participant would exceed the amount to be recovered.
Part 2 Calculations, adjustments, and reconciliations Initial calculation of annual levy rates Calculation of annual levy rates This regulation shows how the annual levy rates must be cal­ culated by the Commission.

Step 1 is that the costs of each activity must be determined.
This is done by— (a) allocating the estimated Commission costs to the activ­ ities listed in column 1 of table 1 (including by appor­ tioning the Commission’s indirect costs to those activ­ ities); and taking $2,897,216 to be the annual costs to be recovered in each of the 5 ﬁnancial years beginning on 1 July 2005 and ending with 30 June 2010 in respect of the MACQS reform operations: (b) Table 1 Allocation of costs of each activity Column 2—Classes of industry participants to whom costs of activity are allocated Column 1—Activity Gener­ ators Pur­ chasers Distribu­ tors Common quality operations Market operations One­ third One­third One­third One­half One­half 7 (1) (2) 8 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 2 r 7 Registry and consumer operations Supply security operations Transmission operations Electricity efﬁciency operations Other activities MACQS reform operations One­half to dis­ tributors other than Trans­ power All to Trans­ power One­half to retailers All All One­ third One­ third One­third One­third One­third One­third (4) (3) Step 2 is that the costs of each activity must be allocated to the classes of industry participants according to the propor­ tions listed in column 2 of table 1 (this determines the costs payable by each participant class per activity).
Step 3 is that the costs payable by each participant class per activity must be divided by the relevant number calculated in accordance with table 2 (this determines the annual levy rate per unit of electricity generated, purchased, or conveyed or per consumer connection, as the case may be): Table 2 Calculation of annual levy rate per unit of electricity generated, purchased, or conveyed or per consumer connection 9 Part 2 r 7 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 Activity Generators Purchasers Distributors Common quality operations Market operations Registry and consumer operations Supply security operations Electricity efﬁciency operations Other activities MACQS reform operations where— C D G G G G P P C P P P P D C D D is the estimated average total number of consumer connections during the ﬁnancial year is the estimated total quantity of electricity to be conveyed by distributors during the ﬁnancial year 10 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 2 r 9 G P is the estimated total quantity of electricity to be generated by generators during the ﬁnancial year is the estimated total quantity of electricity to be purchased by purchasers during the ﬁnancial year.
8 9 (1) (2) Notiﬁcation of annual levy rates As soon as practicable after calculating the annual levy rates under regulation 7, the Commission must notify them by— (a) publishing a notice in the Gazette setting out the annual levy rates; and publishing the annual levy rates on its Internet website at all reasonable times.
(b) Calculation of monthly instalments Calculation of each participant’s monthly instalment This regulation shows how the monthly instalment payable by a generator, purchaser, or distributor must be calculated by the Commission.
Step 1 is that the annual levy rate per unit of electricity gener­ ated, purchased, or conveyed, or per consumer connection as the case may be, must be multiplied by the following multipli­ ers in table 3: Table 3 Annual levy rate multipliers—quantity of electricity generated, purchased, or conveyed or consumer connections Activity Generators Purchasers Distributors Common quality operations Market operations Gim Gim Pim Pim Dim Cim/12 11 Part 2 r 9 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 Registry and consumer operations Supply security operations Electricity efﬁciency operations Other activities MACQS reform operations where— Cim/12 Dim Gim Pim Cim/12 Cim/12 Pim Pim Pim Pim Gim Gim Dim Dim is one­twelfth of the total number of consumer connections for which the retailer or distributor is responsible at the end of the month is the total quantity of electricity conveyed by the distributor during the month is the total quantity of electricity generated by the generator during the month is the total quantity of electricity purchased by the purchaser during the month Step 2 is that the annual costs of transmission operations al­ located under regulation 7(2)(a) must be included in the levy payable by Transpower, in 12 monthly instalments.
Step 3 is that, for each industry participant, the amounts of the levy payable in respect of each activity must be added together (this determines the total amount of the monthly instalment (3) (4) 12 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 2 r 10 of the levy payable by each individual participant under regu­ lation 6).
Adjustments to annual levy rates during ﬁnancial year Levy rates may be adjusted during ﬁnancial year 10 (1) An annual levy rate may, at the Commission’s discretion, be adjusted if— (a) the estimated Commission costs signiﬁcantly change during the ﬁnancial year; or the costs of an activity signiﬁcantly change during the ﬁnancial year (for example, because the Commission acquires, or ceases to have, a particular function); or the amount of levy money estimated under regulation 7 to be collected during the ﬁnancial year is either too much or too little because the quantity of electricity gen­ erated, purchased, or conveyed is signiﬁcantly different from the quantity that was estimated, or the number of consumer connections has signiﬁcantly changed; or the Commission’s costs are reallocated between activ­ ities.
(2) An annual levy rate is adjusted by redoing the calculation in regulation 7 using the amended ﬁgures for the whole or any part of the ﬁnancial year.
(3) As soon as practicable after adjusting an annual levy rate, the Commission must— (a) publish the adjusted annual levy rate in accordance with regulation 8; and notify relevant industry participants of the adjusted an­ nual levy rate before invoicing the industry participant for the next monthly instalment; and use the adjusted levy rate for calculations of future monthly instalments.
(b) (c) (d) (b) (c) 13 Part 2 r 11 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 Reconciliation of levy after end of ﬁnancial year Reconciliation of levy after end of ﬁnancial year on basis of actual numbers The Commission must, as soon as practicable after the Com­ mission’s audited ﬁnancial statements for a ﬁnancial year are presented to the House of Representatives,— (a) reconcile the levy for the ﬁnancial year against the levy that would have been payable if the calculation under regulation 7 (or, if it has been recalculated, the recalcu­ lation under regulation 10(2)) had used— (i) the actual Commission costs for the year, rather than the estimated Commission costs; and the actual quantity of electricity generated, pur­ chased, or conveyed, and the actual number of consumer connections, rather than the estimated numbers; and (ii) (b) (c) have the reconciliation calculation referred to in para­ graph (a) independently audited; and publish the reconciled annual levy rates in accordance with regulation 8.
For the purposes of subclause (1), actual Commission costs for a ﬁnancial year is the amount— (a) identiﬁed in the Commission’s audited ﬁnancial state­ ments for that year as the costs, net of the income, of performing the Commission’s functions, powers, and duties under the Act and of collecting the levy; but that does not exceed the total amount appropriated for that year in relation to the performance of the Commis­ sion’s functions, powers, and duties under the Act and to the Commission’s collection of the levy; and that is exclusive of goods and services tax.
(b) (c) Reconciliation of levy after end of ﬁnancial year on basis of reconciled ﬁgures This regulation applies if the Commission considers that the quantities of electricity generated, purchased, or conveyed are signiﬁcantly changed as a result of any reconciliation under rules 11.4 to 11.7 or rule 12.2 or rule 12.3 of Section 6 (Rec­ onciliation) of Part G (Trading arrangements) of the rules in re­ 11 (1) (2) 12 (1) 14 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 Part 3 r 14 (2) spect of any generator, purchaser, or distributor from the num­ bers used in the calculations under regulation 9.
The Commission must reconcile the levy for the ﬁnancial year against the levy that would have been payable if the calculation under regulation 9 had used a multiplier and an annual levy rate that were adjusted to reﬂect those changed numbers.
Refunds and further invoices 13 (1) As soon as practicable after the levy is reconciled under regu­ lation 11 or regulation 12, the Commission must,— (a) if there has been an over­recovery from any industry participant, refund to that participant the amount over recovered from it; and if there has been a signiﬁcant under­recovery in recov­ ering from an industry participant, invoice that partici­ pant for the amount under­recovered from it, as part of the levy for the current year.
(b) (2) Any under­recovery that is included in the levy under this regulation may be collected by a further invoice; the due date for payment of that amount is the tenth working day after the industry participant receives that invoice.
Part 3 Transitional and miscellaneous provisions Transitional provisions 14 (1) (2) Recovery of costs of additional activities This regulation applies to the costs of any activity— (a) that the Commission began to carry out before the date on which these regulations come into force, or begins to carry out after that date (whether that activity is an initial or a new function); and that the Commission was authorised to carry out under the Act at the time.
(b) The Commission may decide to recover all or any of the costs of the activity by any 1 or more of the following methods: (a) in any 1 or more monthly instalments of the levy, by setting a new rate for that activity or by adjusting an existing levy rate under regulation 10: 15 Part 3 r 15 Electricity (Levy of Industry Participants) Regulations 2005 Reprinted as at 4 September 2007 (b) in the end­of­year reconciliation under regulations 11 to 13.
Revocation 15 Revocation The Electricity (Levy of Industry Participants) Regulations 2004 (SR 2004/124) are revoked.

Rebecca Kitteridge, Acting for Clerk of the Executive Council.

Explanatory note This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on the 28th day after the date of their notiﬁcation in the Gazette, impose levies on electricity generators, wholesale purchasers, and electricity distributors (which includes Transpower) for the costs of performing the Electricity Commission’s functions, powers, and duties under the Electricity Act 1992 and of collecting the levy money.
The main differences between the 2004 levy regulations and these regulations are that under these regulations •• the Commission’s supply security costs are recovered from wholesale purchasers, through a levy on wholesale electricity purchased during the year in which the costs are incurred: the Commission’s electricity efﬁciency costs are recovered from wholesale purchasers through a levy on wholesale elec­ tricity purchased during the year in which the costs are in­ curred: the Commission’s consumer protection costs are recovered in equal portions from wholesale purchasers and electricity dis­ tributors, in combination with registry and customer switching costs: the Commission’s transmission governance costs are recov­ ered from Transpower: Transpower’s historical common quality development costs are recovered over 5 years, in equal portions from electricity generators, wholesale purchasers, and electricity distributors, •• •• •• •• 16 Reprinted as at 4 September 2007 Electricity (Levy of Industry Participants) Regulations 2005 on the basis of electricity generated, electricity purchased, and electricity conveyed, respectively.
Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notiﬁcation in Gazette: 24 March 2005.

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