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REMCo generates revenue to cover the capital and operating costs associated with administration of the Retail Market Rules (the "Rules") from its Members.
The REMCo Board sets fees annually using the approach defined in Chapter 8 of the Rules. REMCo operates on a cost-recovery basis only (no profit) – it generates revenue from its Members to cover the capital and operating costs associated with administration of the Rules, in three forms:
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| Registration Fee |
A one-off charge ($) on all Members, payable upon joining REMCo. |
| Annual Fee |
An annual charge ($) levied on all Members. This fee is set low enough so as not to create a barrier to entry for new participants, but sufficient to ensure that Members are serious about operation in Western Australia. |
| Market Share Charge |
A monthly fee levied on retailers based on their market share ($/customer/month). This fee recovers the majority of REMCo’s costs. |
The Board-approved REMCo fees for 2010/11 are:
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Registration Fee: |
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Member: |
$11,628 |
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Associate Member: |
$2,326 |
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Annual Fee: |
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Member: |
$17,766/year |
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Associate Member: |
$3,553/year |
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Market Share Charge: |
$0.2427/MIRN/month |
Any excess surplus from operations is returned to Members as a reduction in fees in future years, or as a rebate to retailers.
To assist the Members, in particular the retailers, in managing their annual cash flows, REMCo attempts to maintain a stable
fee base throughout each year. However, REMCo reserves the right to adjust these fees in match actual costs incurred.
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