The Commission’s electricity licensing fact sheet provides potential licensees with guidance on the licence application process. The fact sheet is based on the current legislative framework and should be used in conjunction with the relevant legislation.
An electricity licensing application checklist, attachment list and declaration have been produced by the Commission and should be completed as part of any licence application.
An application will follow the process described in the electricity licensing fact sheet, noting the process can take up to six months providing no issues arise. The applicant is encouraged to contact the Commission at an early stage to understand any information requirements that may be relevant to the application. The licence application checklist should be followed to ensure completeness.
If relevant to the proposed operation, an Access Agreement with the appropriate entity should be sought in parallel with the licence application.
In assessing a licence application the Commission will have regard to the Commission’s strategic statement, which is “the Utilities Commission seeks to protect the long-term interests of consumers of services provided by regulated industries with respect to price, reliability and quality”.
The Commission will consider the application against the relevant provisions of the Electricity Reform Act 2000 and will have regard to whether:
- the applicant is a suitable person
- the proposed operation will have the necessary characteristics in order to not have a detrimental effect on the system regarding security, reliability and safety
- the applicant is financially stable.
A licence is made subject to conditions, with a number of the conditions able to be included or excluded where the Commission deems appropriate. This will be considered on an individual basis. An applicant should familiarise themselves with the standard conditions.
In accordance with good regulatory practice, the Commission will undertake public consultation as part of its assessment. The Commission may seek advice from stakeholders and suitably qualified consultants where it is deemed necessary. The Commission will not share information of a confidential or commercially sensitive nature.