(1) In these regulations, unless the context otherwise requires,—

(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.

(1) Each generator, purchaser, and distributor is liable to pay a levy to the Commission on behalf of the Crown.

(2) The levy—

• (a) must be initially calculated under regulations 7 and 9 (which provide for calculation on the basis of estimated 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.

(1) The annual levy is payable to the Commission in monthly instalments in arrears.

(2) 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.

(3) The Commission must invoice industry participants for each monthly instalment as soon as practicable after the start of the following month.

(4) The due date for payment of each monthly instalment is the later of—

• (a) the tenth working day after the industry participant receives an invoice for that monthly instalment; or

• (b) the 20th day of the month following the month to which the instalment relates.

(5) The Commission may waive the payment of 1 or more monthly instalments if the Commission considers that the cost of invoicing the industry participant would exceed the amount to be recovered.

(1) This regulation shows how the annual levy rates must be calculated by the Commission.

(2) Step 1 is that the costs of each activity must be determined. This is done by—

• (a) allocating the estimated Commission costs to the activities listed in column 1 of table 1 (including by apportioning the Commission’s indirect costs to those activities); and

• (b) 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:

(3) Step 2 is that the costs of each activity must be allocated to the classes of industry participants according to the proportions listed in column 2 of table 1 (this determines the costs payable by each participant class per activity).

(4) 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):

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

• (b) publishing the annual levy rates on its Internet website at all reasonable times.

(1) This regulation shows how the monthly instalment payable by a generator, purchaser, or distributor must be calculated by the Commission.

(2) Step 1 is that the annual levy rate per unit of electricity generated, purchased, or conveyed, or per consumer connection as the case may be, must be multiplied by the following multipliers in table 3:

(3) Step 2 is that the annual costs of transmission operations allocated under regulation 7(2)(a) must be included in the levy payable by Transpower, in 12 monthly instalments.

(4) 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 of the levy payable by each individual participant under regulation 6).

(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

• (b) 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

• (c) 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 generated, purchased, or conveyed is significantly different from the quantity that was estimated, or the number of consumer connections has significantly changed; or

• (d) the Commission’s costs are reallocated between activities.

(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

• (b) notify relevant industry participants of the adjusted annual levy rate before invoicing the industry participant for the next monthly instalment; and

• (c) use the adjusted levy rate for calculations of future monthly instalments.

(1) The Commission must, as soon as practicable after the Commission’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 recalculation under regulation 10(2)) had used—

  • (i) the actual Commission costs for the year, rather than the estimated Commission costs; and

  • (ii) the actual quantity of electricity generated, purchased, or conveyed, and the actual number of consumer connections, rather than the estimated numbers; and

• (b) have the reconciliation calculation referred to in paragraph (a) independently audited; and

• (c) publish the reconciled annual levy rates in accordance with regulation 8.

(2) For the purposes of subclause (1), actual Commission costs for a financial year is the amount—

• (a) identified in the Commission’s audited financial statements 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

• (b) that does not exceed the total amount appropriated for that year in relation to the performance of the Commission’s functions, powers, and duties under the Act and to the Commission’s collection of the levy; and

• (c) that is exclusive of goods and services tax.

(1) 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 10.4 to 10.6 or rule 11 or Schedule J4 of Part J (Reconciliation) of the rules in respect of any generator, purchaser, or distributor from the numbers used in the calculations under regulation 9.

(2) 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.

(1) As soon as practicable after the levy is reconciled under regulation 11 or regulation 12, the Commission must,—

• (a) if there has been an over-recovery from any industry participant, refund to that participant the amount over-recovered from it; and

• (b) if there has been a significant under-recovery in recovering from an industry participant, invoice that participant for the amount under-recovered from it, as part of the levy for the current year.

(2) Any under-recovery 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.

(1) 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

• (b) that the Commission was authorised to carry out under the Act at the time.

(2) 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:

• (b) in the end-of-year reconciliation under regulations 11 to 13.

The Electricity (Levy of Industry Participants) Regulations 2004 (SR 2004/124) are revoked.