BULLETIN: 27/2018

Payment in Lieu of Rate (PiLoR) system changes

Changes have been approved to the Payment in Lieu of Rates (PiLoR) framework under section 94 of the Electricity Industry Act 2000.This mechanism allows for the payment of rates by electricity generators under alternate arrangements from rates levied under the Local Government Act 1989.

The changes apply to solar and wind electricity generators up to 25 MW capacity.  Solar has also been included as an energy source so that solar generators of all capacities can use the PiLoR framework to calculate payments.

A new rate has been introduced for community owned and smaller commercial solar and wind generators of up to 25 MW capacity. The following rates now apply:

• For a commercial solar or wind generator: $1.12 per MWh generated, or $7,500, whichever is greater in each year; or
• For a community solar or wind generator: $0.56 per MWh generated, or $5,000, whichever is greater in each year.

These rates are for the 2018-2019 financial year and are indexed to inflation for following years.

The changes have been made following public consultation about the PiLoR framework and how it applies to renewable energy generators that have community involvement.  Please note that there is no change to the existing methodology for solar and wind generators over 25 MW capacity, or any other type of electricity generator such as hydro, coal or gas.

More information can be found by visiting the energy.vic.gov.au website. A fact sheet is also attached that provides an overview of the PiLoR methodology, the changes and how to apply them.  Should you have any queries about how to apply the methodology, DELWP regional engagement officers are available and their contact details are provided in the fact sheet.

Graeme Emonson
Executive Director
Local Government Victoria

Authorised by Graeme Emonson, Executive Director, Local Government Victoria
Department of Environment, Land, Water and Planning, Level 35, 2 Lonsdale Street, Melbourne