Explanation of the levy

Details of the levy and how it was calculated are set out in the Electricity (Levy of Industry Participants) Regulations 2005.

The Commission published three sets of levy rates in each financial year:

  • Indicative levy rates - estimated rates published in December/January prior to the start of the financial year, intended as a guideline to the industry for planning purposes.
  • Invoiced levy rates - estimated rates gazetted prior to the start of the financial year after finalisation of Commission budgets, used to calculate monthly levy invoices during the financial year.
  • Reconciled levy rates - actual rates published in December after the annual audit is complete, used to determine whether industry participants have underpaid or overpaid their levy for the previous financial year.

There were four steps in the levy calculation:

  1. Determining estimated/actual Commission costs for the financial year and allocating costs across activities.
  2. Allocating costs for each activity between generators, purchasers and line owners in the proportions sets out in the Regulations (refer to Regulation 7, table 1).
  3. Obtaining the estimated/actual quantity of electricity generated, purchased and conveyed during the year, and number of consumer connections (refer to Regulation 7, table 2).
  4. Calculating the estimated/actual levy rates.

There were two main levy processes in each financial year to meet the requirements of the Regulations:

  • Monthly invoicing - actual monthly units (provisional) were multiplied by the invoicing levy rates to give a monthly invoice amount.
  • Annual reconciliation - at the end of the financial year the annual reconciliation used actual annual units multiplied by the reconciled levy rate to determine the amount each participant should have paid, the difference between this total and the amount paid on monthly invoices during the year was then either refunded or invoiced.

Levy rates 

2010/11

2009/10

2008/09

2007/08

2006/07

2005/06

2004/05

2003/04

  • Archive - Levy regulations

    Published: 29/01/2014 12:00am

    The Electricity (Levy Industry Participants) Regulations 2005 came into force on 21 April 2005 and imposed a levy on electricity generators, wholesale purchasers, and electricity distributors (including Transpower) for the costs of the Commission performi Read More