How we are funded

How is the Electricity Authority funded?

We're funded by the Government through appropriations of public money. The Government recovers this cost through a levy on electricity industry participants.

Industry participants may pass this cost on to consumers. This means a portion is on-charged through electricity bills – about 0.4% of a typical household electricity bill.

The levy also funds the electricity efficiency programmes delivered by the Energy Efficiency and Conservation Authority.

How are levy rates set?

Levy rates are set based on the:

• costs of the Electricity Authority
• costs of the Energy Efficiency and Conservation Authority's electricity efficiency programmes
• quantity of electricity generated, purchased and conveyed, plus the number of consumer connections.

How are levy rates calculated?

The levy is calculated in accordance with detailed formulae set out in the Electricity Industry (Levy of Industry Participants) Regulations 2010.

Levy rates are calculated in three stages, which are:

1. Indicative levy rates - We estimate the costs and the quantity of electricity generated, distributed and purchased during the year, plus the number of consumer connections. We then use this information to calculate the indicative levy rates for the year.
2. Invoiced levy rates - These are estimated rates that are published prior to the start of the financial year, after budgets have been finalised. These rates are used to calculate the monthly levy invoices that we send to industry participants. If there is a significant change in costs during the year, invoiced levy rates can be recalculated.
3. Reconciled levy rates - After the end of the financial year, we recalculate the levy rates using the actual quantities of electricity generated, distributed and purchased during the year, the number of consumer connections and actual costs. We use the reconciled levy rates to determine whether industry participants have underpaid or overpaid their levy for the previous financial year. Invoices or credits are then issued.

Annual levy rates

Here is the current annual levy rate notice and historical notices.