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Licensing

Under the Electricity Act 1994 (the Act), the Regulator (who, for the purposes of the Act, is the Director-General, Department of Mines and Energy) issues authorities (licences) for generation, transmission, distribution and retail activities undertaken in Queensland's electricity industry.

Special Approvals may also be issued by the Regulator, or given by regulation made under the Act, to authorise persons, in special circumstances, to perform any of the activities normally authorised by a generation, transmission, distribution or retail authority.

Current Consultations on Electricity Licensing Applications

Under the Act, for applications for a generation, transmission, distribution or (where the applicant does not hold an interstate authority) retail authority, the Regulator must, before issuing the authority, invite interested persons to make a submission about the application and must consider any submissions received. View current consultations on electricity licensing applications.

Generation Authority

A Generation Authority authorises the connection of specified generating plant to a specified transmission grid or supply network, and the sale of electricity either through the National Electricity Market or as otherwise specified.

Transmission Authority

A Transmission Authority authorises the operation of a specified transmission grid and may also authorise connection of the specified transmission grid to another specified transmission grid.

Distribution Authority

A Distribution Authority authorises its holder to supply electricity using a supply network within the Distribution Area stated in the Authority.

Retail Authority

A Retail Authority authorises its holder to provide 'customer retail services' which means the sale of electricity to a customer for the customer's premises. There are two types of Retail Authority:

  1. Retail Authority specifying a Retail Area, which authorises the holder to provide customer retail services to excluded customers in its Retail Area and, in competition with other licensed retail entities, to any customer anywhere in Queensland (however, Ergon Energy Queensland Pty Ltd is restricted to providing customer retail services only to non-market customers in its Retail Area); and
  2. Retail Authority with no Retail Area specified, which authorises the holder to provide customer retail services, in competition with other licensed retail entities, to any customer anywhere in Queensland, (other than excluded customers to whom the holder has no retail obligation).

(An excluded customer is a customer whose premises are connected, or to be connected, to a distribution entity's supply network that is not connected to the national grid - see section 23(6) of the Electricity Act 1994.)

The holders of both types of Retail Authority also have an obligation (called the 'retail obligation') to provide, upon request, customer retail services at regulated prices (i.e. notified prices determined by the Minister under section 90 of the Electricity Act 1994) to certain types of customers in certain circumstances (as set out in sections 48D to 48I of the Electricity Act 1994). The types of customers and circumstances in which the retail obligation applies are summarised below:

  1. A retail entity with a Retail Area has the retail obligation for:
    - customers (large or small) who wish to connect new premises in the retail entity's Retail Area;
    - small customers at premises for which the retail entity is the financially responsible retail entity (i.e. the existing retail entity for the premises);
    - large non-market customers at premises for the which the retail entity is the financially responsible retail entity (i.e. the existing retail entity for the premises).
  2. A retail entity without a Retail Area has the retail obligation for small customers at premises for which the retail entity is the financially responsible retail entity (i.e. the existing retail entity for the premises).

Although the retail obligation applies to the types of customers and circumstances set out above, those customers may choose to enter into a negotiated retail contract, on negotiated prices, with either the retail entity who has the retail obligation (other than Ergon Energy Queensland Pty Ltd) or another retail entity of the customer's choice.

Download a current list of Licensed Electricity Retailers (PDF - 35KB).

Special Approval

A Special Approval authorises its holder to perform the activities specified in the Special Approval, which may be any of the activities normally authorised by a generation, transmission, distribution or retail authority.

Generally, Special Approvals are granted when special circumstances apply such that authorisation of the activities by a generation, transmission, distribution or retail authority, as the case may be, is not appropriate.  For example, a Special Approval may authorise the operator of an island resort, which is generating its own electricity, operating its own supply network and selling electricity within the resort, to perform those generation, distribution and retail activities.

Application Process for an Authority or Special Approval

In determining whether to issue an Authority or Special Approval, the Act requires the Regulator to consider a set of clearly defined criteria and, in most cases, to conduct a public consultation process about the application.

The following guidelines on the form and content of applications are available for the assistance of applicants:

Potential applicants should also be aware of the Queensland Government's policy about new coal-fired generation set out in ClimateSmart 2050 - Queensland climate change strategy 2007: a low-carbon future as well as its policy about electricity supply in the Daintree Region (PDF - 31KB).

Proforma Authorities and Special Approvals and Conditions

Copies of individual Authorities/Special Approvals are generally not published nor made available unless the holder consents.  Proformas for each type of Authority/Special Approval are available.

Individual Authorities/Special Approvals may contain different or additional conditions in particular cases. Many of the conditions of the Authorities/Special Approvals are set out in the Act and Regulation.  An electronic copy of the Act and Regulation is available online.

Responsibility for monitoring compliance with the conditions of Authorities and Special Approvals, and taking disciplinary action where necessary, rests with the Regulator. The disciplinary action that may be taken includes suspension, amendment or cancellation of the Authority/Special Approval and imposition of monetary penalties.

Annual Reports to the Regulator

Holders of electricity generation, transmission, distribution and retail authorities and special approvals (all referred to generally as licences) under the Act are required to submit to the Regulator, by 31 October each year, Annual Reports on their operations for the preceeding financial year.

The information provided in the Annual Reports enables the Regulator to assess the licence holder's compliance with its statutory obligations as a means to determine its continued suitability to hold a licence, and also provides information to assist in the performance of the Regulator's other functions under the Act.

Electronic versions of the 2008-09 Annual Report proformas for each category of electricity licence are provided below:

Solar Bonus Scheme

The Electricity Act 1994 requires retail and distribution authorities to submit Solar Bonus Scheme data to the Regulator at six-monthly intervals. Reporting templates are available to assist authorities meet this obligation.

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Last Updated 20 August 2009