Ongoing Allocation Costs
Rules 15 to 18 of the Reconciliation Rules provide for ongoing fees to be paid by allocation participants to Gas Industry Co on a monthly basis to meet the ongoing allocation costs. The ongoing allocation costs include the costs:
- payable by Gas Industry Co to the allocation agent for the services provided under Parts 1, 2 and 5 of the Reconciliation Rules in respect of that gas year; and
- of Gas Industry Co associated with allocation and its role under the Reconciliation Rules during that gas year.
Gas Industry Co has determined that its costs should exclude overhead costs and policy work resulting from operational activities under the Reconciliation Rules.
Estimated ongoing costs for the 2011/12 gas year
| Cost categories | Estimated annual cost |
| Service provider base fee | $680,000 |
| External advice/system modification | $20,000 |
| Total ongoing costs | $700,000 |
Ongoing costs for the 2010/11 gas year
| Cost categories | Estimated |
Actual |
| Service provider base fee | $680,000 | $680,000 |
| External advice/system modification | $22,000 | $6,679 |
| Total ongoing costs | $702,000 | $686,679 |
| Recovered | $701,996 | |
| Over recovery | $15,317 |