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PILBARA ISOCO BUDGET AND FEES 2025-26 PDF Free Download

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Pilbara isoco budget and fees
2025-26
30 June 2023
15 July 2025
Pilbara ISOCo Budget and Fees 2025-26 1
Table of Contents
BUDGET OVERVIEW .......................................................................... 3
1. INTRODUCTION .......................................................................... 5
2. CONSULTATION .......................................................................... 6
3. BUDGET DEVELOPMENT AND FINANCIAL GOVERNANCE ................... 8
3.1 BUDGET OBJECTIVE ........................................................................................... 8
3.2 HOW THE ISO BUDGET IS DEVELOPED ...................................................................... 8
3.3 ISO FINANCIAL GOVERNANCE ............................................................................... 9
4. STRATEGIC CONTEXT ................................................................ 11
4.1 ISO STRATEGIC PRIORITIES ............................................................................... 11
4.2 EVOLUTION OF ISO FUNCTIONS ........................................................................... 12
4.3 ISO ORGANISATIONAL STRUCTURE ....................................................................... 15
5. FINANCIALS ............................................................................. 16
5.1 2025-26 BUDGET AND FEES .............................................................................. 16
5.2 OTHER PILBARA ELECTRICITY REGIME COSTS ........................................................... 18
6. MAJOR SPENDING CHANGES ...................................................... 20
6.1 MAJOR SPENDING CHANGES ............................................................................... 20
7. MAJOR SPENDING ITEMS ........................................................... 23
7.1 GOVERNMENT SERVICES .................................................................................... 23
7.2 RECOVERABLE EXPENSES .................................................................................... 23
7.3 REGULATORY AND TECHNICAL OPERATING EXPENSES .................................................. 24
7.4 ADMINISTRATIVE OPERATING EXPENSES ................................................................. 28
Pilbara ISOCo Budget and Fees 2025-26 2
8. FEES ....................................................................................... 30
8.1 ISO FEE ...................................................................................................... 30
8.2 COORDINATOR FEE .......................................................................................... 30
8.3 AUTHORITY FEE .............................................................................................. 31
8.4 ACCESS AND CONNECTION FEES ........................................................................... 31
8.5 REFORM ....................................................................................................... 32
9. FINANCIAL RISKS ..................................................................... 33
9.1 ISO COMPLIANCE AUDIT ................................................................................... 33
9.2 RULE CHANGE – CHAPTER 10 LONG TERM PLANNING FUNCTIONS ..................................... 33
9.3 INTERNAL CAPACITY ......................................................................................... 33
ATTACHMENT 1: SUMMARY OF RESPONSIBILITIES ..................... 34
ATTACHMENT 2: COMPARISON 2025-26 AND 2024-25 ................ 39
Pilbara ISOCo Budget and Fees 2025-26 3
Budget Overview
The Pilbara ISOCo (ISO) Budget and Fees 2025-26 is set in accordance with
Subchapter 4.5 of the Pilbara Networks Rules (Rules) and the Interim Budget and
Cost Management Procedure (Procedure).
The budget has been built up identifying the functions that the ISO needs to
perform in 2025-26 under the Rules, as well as its corporate and executive
services.
Over the past two years, the ISO has been building knowledge and experience of
its resourcing requirements. In 2025-26, the ISO continues to build to its base
resourcing requirements to deliver all its functions and business requirements.
The Pilbara electricity system is transitioning to a low carbon future. The current
system is designed around predominately dispatchable thermal generation
comprised of gas turbines. Decarbonisation efforts have seen a change in the
types of technologies that are available to supply electricity and the services that
are required to support the new technologies on the system. Decarbonisation is
also changing the nature and complexity of the work undertaken by the ISO and
associated resourcing requirements to achieve the lowest practicably sustainable
cost of performing its functions.
The significant issues and spending changes addressed in the 2025-26 budget
include:
• the connection of inverter-based technologies is increasing the quantity and
complexity of work undertaken by the ISO. This is driving up the cost of
technical advice for power system studies which are required to be performed
under the Rules. The ISO has increased its internal technical capability and
capacity, which is off-setting this increasing cost. Internal technical capability
has multiple benefits, including reduced technical consultant costs, increased
responsiveness and reduced risk associated with sole suppliers;
• legal costs are expected to significantly decrease as the Australian Competition
and Consumer Commission (ACCC) authorisation is in place;
• the 2025-26 Budget includes $300,000 for expected consultant costs
associated with Energy Policy WA (EPWA) reforms. This does not represent an
increase in ISO fees, as ISO is seeking to recover these costs from EPWA;
• the increasing maturity of the business is increasing corporate and executive
services costs such as payroll tax, rent, cyber security requirements, risk
management and corporate policy development and training.
Below provides an overview of ISO’s 2025-26 total operating expenditure and
proposed fees.
Pilbara ISOCo Budget and Fees 2025-26 4
Table 1: 2025-26 total operating expenses and ISO fees.
Budget 2025-26
Budget 2024-25
Est. Act 2024-25
Total operating expenses
$6,297,050
$5,643,721
$4,964,182
Revenue
Coordinator Fees
$681,079
$410,334
$410,334
Authority Fees
$11,471
$10,787
$7,007
Access and Connection - Consultants
$150,000
$300,000
$149,108
Access and Connection - Labour
$150,000
$100,000
$82,950
Reform
$300,000
$0
$0
Interest Income
$0
$0
$1,435
Total ISO Fees
$5,004,500
$4,822,600
$4,313,348
Chart 1: Breakdown of 2025-26 total budgeted operating expenditure and revenue
Pilbara ISOCo Budget and Fees 2025-26 5
1. Introduction
The ISO is a not-for-profit company limited by guarantee, appointed by
Government to perform the role of the independent system operator under the
Pilbara electricity regime. Its current members are the three registered network
service providers in the North-West Interconnected System (NWIS): Horizon
Power, APA and Rio Tinto.
The ISO receives no ongoing Government funding but recovers its operating and
capital expenses through fees levied on participants. Each fee is limited to
recovering the costs of providing the service.
The ISO Budget is set under Subchapter 4.5 of the Rules and the Procedure.
The Rules require the fees to be consistent with the Pilbara electricity objective
and to only include costs which would be incurred by a prudent person, acting
efficiently and seeking to achieve the lowest practicably sustainable cost of
performing its functions.
This document outlines the final approved 2025-26 Budget, as required to perform
the functions of the ISO as outlined in the Rules. Attachment 1 provides an
overview of the ISO’s functions under the Rules as well as its corporate and
executive services functions.
Pilbara ISOCo Budget and Fees 2025-26 6
2. Consultation
The draft 2025-26 Budget and Fees was published on the ISO’s website to enable
consultation in accordance with the standard consultation process outlined in
Appendix 1 of the Rules.
Table 2: Consultation process for the 2025-26 Budget and Fees
Event
Date
Publish Budget and Invitation for Submissions
5 May 2025
Public Submission Period
5 May – 19 May 2025
Board Considered Final Budget
June 2025
Final Budget Published
15 July 2025
The ISO received submissions from APA and Horizon Power on the draft budget
and fees 2025-26. The submissions and the ISO response are available on the
ISO’s website.
The ISO reviewed the submissions to determine if circumstances warranted the
making of a draft decision. The circumstances which the ISO would make a draft
decision include:
• material mistakes in the draft budget consultation paper;
• any changes proposed by stakeholders which would result in an increase to
ISO fees;
• any change in financial risks outlined in section 9;
• any other change to the budget proposed by a stakeholder that would benefit
from broader stakeholder consultation.
The submissions received by ISO on the 2025-26 budget and fees focused on
trends, process and presentation. The submissions did not propose specific
changes to line items included in the 2025-26 Budget and Fees.
Following consultation on the draft 2025-26 Budget and Fees, ISO has made
several changes to reflect stakeholder and Board feedback. The Board considered
the stakeholder submissions and ISO response prior to approving the 2025-26
Budget and Fees. Changes to the budget between draft and final include:
Governance and budget setting
Stakeholders requested further information on the movement of budget line items
and use of global contingency. In response ISO has provided further clarity on
budget development and financial governance of the ISO budget and fees (see
section 3).
Transparency and engagement approach
Stakeholders requested increased time and engagement on the budget
consultation process.
Pilbara ISOCo Budget and Fees 2025-26 7
The ISO commits to the following improvements:
• longer public submission periods of at least 15 business days;
• providing additional transparency up front on how the ISO will assess whether
the circumstances warrant a draft decision and second round public
consultation;
• providing further detail on how stakeholder feedback has influenced decision
making (see section 2 and stakeholder response table published on ISO’s
website).
Further information on the evolution of ISOs functions and resourcing
Submissions requested further information on various budget line items. The ISO
has provided the following additional information:
• further information on how ISO’s functions have evolved in quantity and
complexity (see section 4);
• a more detailed summary of responsibilities which the ISO performs under each
subchapter of the Rules (see Attachment 1); and
• a comparison between 2024-25 actual estimated expenditure with the 2025-
26 budget (see Attachment 2).
The Procedure provides that the annual budget must be sufficiently detailed
enough for registered NSPs and other stakeholders to assess the budget against
the Budget Objectives set out in Rule 122 but must also do so in a way which
preserves the commercial and confidential information of the ISO.
In assessing the detail to be provided in preparing its budget the ISO carefully
considers the trade-off between transparency and signalling to commercial service
providers.
Labour costs
The ISO has provided an overview of its organisational structure in response to
submissions requesting increased transparency of ISO’s increasing labour costs
(see section 4.3).
Typographical errors
The ISO has reviewed and updated the final 2025-26 budget and fees to fix
typographical errors identified in the draft.
Pilbara ISOCo Budget and Fees 2025-26 8
3. Budget Development and Financial
Governance
The ISO is a not-for-profit organisation, operating on a full cost-recovery basis.
The company carries out functions that have been conferred under the Pilbara
Networks Rules. The Rules set out how ISO recovers its cost from the Network
Service Providers (NSPs) who are owners of the company and benefit from the
services provided.
3.1 Budget Objective
The Budget Objective (Rule 122 PNR) requires that ISO Fees:
• are consistent with the Pilbara Electricity Objective; and
{The Pilbara Electricity Objective is to meet the State Electricity Objective to promote efficient investment
in, and efficient operation and use of, electricity services for the long-term interests of consumers of
electricity in relation to –
(a) the quality, safety, reliability and security of supply of electricity; and
(b) the price of electricity; and
(c) the environment, including reducing greenhouse gas emissions}
• include only costs which would be incurred by a prudent person performing the
ISO’s functions under Part 8A of the Act, acting efficiently, in accordance with
GEIP, and seeking to achieve the lowest practicably sustainable cost of
performing those functions, while effectively promoting the Pilbara Electricity
Objective; and
• the secondary budget objective is to achieve the primary objective as simply
and inexpensively as possible, while ensuring that all affected stakeholders
(including consumers on to whom the costs may be passed) have a reasonable
opportunity to be heard.
The Procedure requires that the annual budget must be sufficiently detailed
enough for registered NSPs and other stakeholders to assess the budget against
the Budget Objectives, but that it does so in a way which preserves the commercial
and confidential information of the ISO.
3.2 How the ISO budget is developed
The ISO uses the Budget Objective to guide the development of its annual budget.
In keeping with the secondary budget objective, the ISO utilises internal resources
to deliver this function.
The budget is built up by identifying the functions that the ISO needs to perform
in 2025-26 under the Rules, and its corporate and executive services. A summary
of ISO’s responsibilities is included in Attachment 1.
Pilbara ISOCo Budget and Fees 2025-26 9
There are many functions and tasks under the Rules whereby ISO may be
requested to perform a function by a Rules Participant (i.e. exemption requests or
loss factor assessment) or where a function is performed as a result of something
that has occurred on the power system (i.e. post-incident reviews, compliance
investigations). These expenses are largely not schedulable as they are outside
the direct control of the ISO. The ISO budgets for these items to ensure fee
stability for registered NSPs. The ISO does not spend against these items unless
they are required.
To ensure ISO is seeking to achieve the lowest practicably sustainable costs of
performing its functions, while promoting the Pilbara Electricity Objective, the ISO
assesses whether tasks can be delivered by employees or whether specialist
advice is required from consultants. The ISO uses a number of consultants for
different services depending on conflicts, availability, skill and cost. The ISO
procures through competitive tender processes to achieve value for money
outcomes.
The draft budget is reviewed by the ISO Board prior to public consultation. The
ISO incorporates Board feedback by refining its budget, fees and priorities prior
to publication.
Stakeholders are invited to consider the draft budget as part of a public
consultation period. Stakeholder submissions and the ISO’s response are provided
in full to the Board for consideration.
The Board approves the final ISO budget in accordance with Rule 123 of the Rules.
3.3 ISO Financial Governance
As an independent, not-for-profit company, the ISO is committed to transparent
and accountable financial governance.
The ISO has a range of governance mechanisms in place. The roles of each are
outlined below:
The Board
The ISO Board consists of an Independent Chair, a Government Appointed
Director and three NSP Member Directors.
The Board is responsible for the overall governance and performance of the
company. The Board has oversight of ISO’s long-term strategy, policies, budget
and risk management framework.
The ISO’s Constitution and Board Charter sets out the full role and responsibilities
of the Board. These are available on ISO’s website.
To support effective financial governance, the Board undertakes the following
tasks:
• approves the ISO annual budget and mid-year review;
• approves monthly financial reports which track expenditure against budget, as
well as accounting compliance;
Pilbara ISOCo Budget and Fees 2025-26 10
• approves the Delegations of Authority Policy, and notes any financial
delegations exercised by the Advisory Subcommittee and Chief Executive
Officer;
• approves the ISO Procurement Policy and exemptions from the Policy; and
• scrutinises specific aspects of ISO’s operations such as financial performance,
internal controls, regulatory compliance and workforce planning.
The Advisory Subcommittee
The Advisory Subcommittee consists of the Independent Chair and the
Government Appointed Director. This Subcommittee has been put in place to
manage potential, actual or perceived conflicts of interest and to provide advice
and support to the Chief Executive Officer. The Advisory Subcommittee Charter
sets out the full role of the Advisory Subcommittee. This is available on ISO’s
website.
The Advisory Subcommittee acts in an advisory capacity unless it has an express
delegation set out in the Delegations of Authority Policy. Where a delegation is
exercised it is reported to the Board for noting.
Chief Executive Officer
The ISO Chief Executive Officer is responsible for operational delivery and
performance of the company.
The Chief Executive Officer has the delegated authority to perform the day-to-day
management of the company, pursuant to clause 19(a) of the Constitution and
delegations in place under the Delegations of Authority Policy. All delegations
exercised are reported back to the Board for noting.
Regulation, Governance and Business Services Team
The Regulation, Governance and Business Services team is responsible for
establishing, maintaining and improving ISOs financial risk and governance
policies, procedures and systems, including:
• legal and regulatory obligations (i.e. accounting policies, annual reporting);
• providing advice and templates to ensure compliance with the ISO
Procurement Policy;
• providing the Board and executive with templates and information to manage
ISO’s risk in accordance with the Risk Management Procedure;
• providing the Board and executive with information to manage ISO finances in
accordance with the approved Budget.
Pilbara ISOCo Budget and Fees 2025-26 11
4. Strategic Context
4.1 ISO Strategic Priorities
In 2025-26, the ISO continues to work towards its strategic priorities.
The 2025-26 Budget and Fees reflects the ISO’s commitment to performing its
functions under the Rules now and into the future to deliver long-term benefits for
the Pilbara electricity system.
Pilbara ISOCo Budget and Fees 2025-26 12
4.2 Evolution of ISO Functions
In the four years since the ISO’s establishment, the company has been
progressively building knowledge and experience of how its key functions must be
applied to the Pilbara electricity systems.
At the same time the Pilbara electricity systems are transitioning to a low-carbon
future, which is changing the nature and complexity of the work undertaken by
ISO and the associated resourcing requirements to achieve the lowest practicably
sustainable cost of performing its functions.
Building base resourcing requirements
Over the past two years, the ISO has been building up the delivery of its functions
in a sequential manner, for example the NWIS whole of system model needed to
be operational prior to being able to carry out power system studies for access
and connection, ESS design and procurement and determining constraint rules.
The ISO has built and prioritised its resources to perform its functions as required.
Functions under the Rules are performed with varying frequency, where the ISO
is performing some functions for the first time 2 or 5 years from Rules
commencement on 1 July 2023. In addition, many of the ISO functions under the
Rules are also undertaken by request of a Rules participant (i.e. exemptions,
access and connection applications) or as required following an incident on the
power system (i.e. investigations and post-incident reviews). The ISO has been
continuing to build knowledge of the quantum of work to be performed under each
function and associated resourcing requirements.
The ISO identifies opportunities for continuous improvement in carrying out its
functions under the Rules to ensure that it is meeting the Pilbara Electricity
Objective, the system security objective, GEIP and the objectives within each
chapter of the Rules. The ISO is also identifying opportunities to build
organisational capacity and capability where it decreases cost and risk for the
company and Rules Participants.
The increasing maturity of the business is also increasing the need for corporate
and executive services costs such as payroll tax, rent, cyber security
requirements, risk management and corporate policy development and training.
Evolving resourcing requirements
The Pilbara electricity system is transitioning to a low carbon future. The current
system is designed around predominately dispatchable thermal generation
comprised of gas turbines. Decarbonisation efforts have seen a change in the
types of technologies that are available to supply electricity and the services that
are required to support the new technologies on the system. Decarbonisation is
also changing the nature and complexity of the work undertaken by the ISO and
associated resourcing requirements to achieve the lowest practicably sustainable
cost of performing its functions.
An example of this is an increased quantum and complexity of work in fulfilling
the ISO’s access and connection functions. The ISO is seeing an increase in the
Pilbara ISOCo Budget and Fees 2025-26 13
number of applications received and the due diligence required to support the
connection of new technologies. At the same time, the ISO is identifying
improvements to its systems and processes to provide additional guidance to
assist access and connection applicants.
With additional connections comes an increase in the quantity and complexity of
power system studies, such as those associated with essential system services
(ESS). With new intermittent generation and storage facilities being connected to
the system, the ISO needs to further consider how this will impact the quantum
of ESS required, contracting requirements, system visibility and cyber security
requirements.
An accurate and up to date NWIS model is essential to enable ISO to perform
many of its functions under the Rules. As new technologies come onto the system
the NWIS model will need to evolve to perform these functions with increased
fidelity. The ISO is investigating the transition and timing necessary for the
implementation of an electromagnetic transient model for the NWIS.
The evolving nature of the power system is driving up the costs of technical advice
and power system studies which are to be performed under the Rules. The ISO
has increased its internal technical capability and capacity, which is offsetting this
increasing cost. Internal technical capability has multiple benefits, including
reduced technical consultant costs, increased responsiveness and reduced risk
associated with sole supplier.
Pilbara ISOCo Budget and Fees 2025-26 15
4.3 ISO Organisational Structure
The ISO has increased its internal technical capability and capacity to perform its
functions under the Rules, and its executive and services functions.
Below provides the 2025-26 Organisational Structure of the ISO.
Chart 2: 2025-26 Organisational Structure
Pilbara ISOCo Budget and Fees 2025-26 16
5. Financials
5.1 2025-26 Budget and Fees
Table 4 provides the 2025-26 ISO Budget. The Budget has been built up
identifying the functions that the ISO needs to perform in 2025-26 under the
Rules.
Table 4: 2025-26 Budget
Pilbara ISOCo Budget
Budget 25-26
Budget 24-25
(post-MYR)
Est Actual
2024-20251
Government Services2
COORDINATOR FEE
$681,079
$410,334
$410,334
AUTHORITY FEE
$11,471
$10,787
$7,007
Total Government Services
$692,550
$421,121
$417,341
Recoverable Expenses
ACCESS AND CONNECTION CONSULTANT COSTS
$150,000
$300,000
$149,108
REFORM
$300,000
-
-
Total Recoverable Expenses
$450,000
$300,000
$149,108
Operating Expenses (Regulatory and Technical)
LEGAL FEES
$130,000
$450,000
$442,613
PROFESSIONAL ADVICE
$200,000
$170,000
$170,150
SYSTEM OPERATIONS
$1,296,000
$1,224,000
$1,224,000
ENGINEERING CONSULTANCY
$03
$350,000
$331,057
MODELLING
$106,000
$11,000
$10,845
TECHNICAL ADVICE
$180,000
$300,000
$289,778
LONG-TERM PLANNING AND COORDINATION
-
$400,000
$86,6004
REGULATORY & TECHNICAL ISO LABOUR COSTS
$2,262,000
$1,387,800
$1,305,086
Operating Expenses (Administration)
ACCOUNTING AND AUDIT SERVICES
$56,000
$70,000
$57,632
DIRECTOR FEES
$165,000
$165,000
$157,122
Pilbara ISOCo Budget and Fees 2025-26 17
STAFF TRAINING & DEVELOPMENT
$50,000
$51,000
$31,562
TRAVEL
$40,000
$30,000
$28,646
INFORMATION AND COMMUNICATION
$58,000
$50,000
$32,467
CAPEX EXPENDITURE
$32,000
-
-
OTHER EXPENSES
$279,500
$253,800
$230,175
GLOBAL CONTINGENCY
$300,000
$10,0005
-
Total ISO Fee Operating Expenses
$5,154,500
$4,922,600
$4,397,733
Total Expenses
$6,297,050
$5,643,721
$4,964,182
1Expenditure to June 2025 (unaudited)
2See Section 8.2 and 8.3 for explanation of these fees
3Re-categorised to modelling
4System strength study was included in this line item as part of the 2024-25 Budget Process
5 The 2024-25 Budget originally included $330,000 for contingency, amortisation and depreciation. The ISO has
moved amortisation and depreciation into the Other Expenses category, which includes rent, insurance, office
supplies, amortisation and depreciation. Of the contingency portion of the budget, $190,000 was reallocated to
ISO labour costs during the 2024-25 mid-year review process and $100,000 was reallocated with approval of
the Board to professional advice for higher than budgeted ISO compliance audit and cyber security audit. See
section 3.3 for further information on ISO financial governance.
Pilbara ISOCo Budget and Fees 2025-26 18
Table 5: ISO Fees and Other Recoverable Expenses
Budget 2025-26
Budget 2024-25
Est. Act 2024-251
Expenses
Total Expenses
$6,297,050
$5,643,721
$4,964,182
Revenue
Coordinator Fees
$681,079
$410,334
$410,334
Authority Fees
$11,471
$10,787
$7,007
Access and Connection - Consultants
$150,000
$300,000
$149,108
Access and Connection – Labour2
$150,000
$100,000
$82,950
Reform
$300,000
$0
$0
Interest Income
$0
$0
$1,435
Total Revenue
$1,292,550
$821,121
$650,834
Total ISO Fees
$5,004,5003
$4,822,6004
$4,313,3485
1Expenditure to June 2025 (unaudited)
2This revenue has been deducted from the total ISO fees but has not been deducted from the specific line item
in the budget, as these costs will need to be paid even if the quantum of revenue is not collected.
3Budget 2025-26 Total ISO Fee Operating Expenses ($5,154,500), minus budgeted access and connection
labour cost recovery ($150,000) (see note 2)
4Budget 2024-25 Total ISO Fee Operating Expenses ($4,922,600), minus budgeted access and connection
labour cost recovery ($100,00) (see note 2).
5Est Actual 2024-25 Total ISO Fee Operating Expenses ($4,397,733), minus estimated actual access and
connection labour cost recovery ($82,950) and interest income ($1,435) (see note 2).
5.2 Other Pilbara Electricity Regime Costs
The ISO is required to procure both frequency control essential system services
(FCESS) and spinning reserve essential system services (SRESS) under
Subchapter 8.1 of the Rules.
On 30 May 2025 the ISO issued a Notice to stakeholders that the existing ESS
contracts would be extended to 30 November 2025. The reason for this was to
allow the commissioning of two new battery energy storage systems (BESS) on
the NWIS. It is expected that the addition of BESS to the NWIS will significantly
change the amount of spinning reserve which will need to be procured in certain
conditions.
The ISO is currently drafting a consultation paper seeking industry input on the
future requirement and procurement of ESS prior to undertaking the 2025-25 ESS
procurement process.
The ISO has entered into the following contracts:
• Pilbara ISO (Rio Tinto)
Pilbara ISOCo Budget and Fees 2025-26 19
o FCESS (+/- 20MW); and
o Base SRESS 20MW
• APA
o Base SRESS 20MW
The total projected cost for all payers of ESS from 1 July 2025 to 30 November
2025 is:
• Primary Frequency Control Service - $210,000 Ex GST
• Base Spinning Reserve Service - $2,420,000 Ex GST
The ISO Control Desk may also enable secondary FCESS and supplementary
SRESS in certain circumstances for the purposes of maintaining system security.
The ISO does not provide an estimate for the costs of enabling these services,
however the total cost of ESS is published on ISO’s website each year in the Annual
Report into the Cost and Effectiveness of Essential System Services.
The ESS costs are allocated for FCESS based on load swing and for SRESS based
on the runway model.
The cost of ESS is not an ISO fee, it is settled monthly in accordance with
Subchapter 8.3 of the Rules.
Table 6: Total Pilbara Electricity Regime Costs
2025-26 Budget
2024-25 Est Actual
2023-24 Actual
Total Operating Expenses
$6,297,050
$4,964,182
$3,661,324
Total ESS
$2,630,0001
$6,351,0452
$4,866,9863
Total Pilbara Electricity
Regime Costs
$8,927,050
$11,315,227
$8,528,310
1 ESS cost for 1 July-30 November 2025, does not include secondary FCESS costs. The ISO will procure ESS for
the remainder of the year prior to 30 November 2025.
2 See Annual Report into the Cost and Effectiveness of Essential System Services in 2024-25: 2024-25-Annual-
Report-into-Essential-System-Services-30-May-2025.pdf
3 See Annual Report into the Cost and Effectiveness of Essential System Services in 2023-24: Annual-Report-
into-the-cost-and-effectiveness-of-Essential-System-Services-in-2023-24.pdf
Pilbara ISOCo Budget and Fees 2025-26 20
6. Major Spending Changes
6.1 Major Spending Changes
The 2025-26 operating expenses paid through ISO fees are estimated to be
$232,000 higher than in the 2024-25 financial year.
Significant spending changes between 2024-25 to 2025-26 is provided in table 7
below. These include:
• full-year salary costs for all approved ISO permanent positions. The increase
in salaries expenses is also attributed to an increase in superannuation
guarantee and payroll tax expenses;
• the connection of inverter-based technologies is increasing the quantity and
complexity of work undertaken by the ISO. This is driving up the costs of
technical advice for power system studies which are to be performed under the
Rules. Internal technical capability and capacity is off-setting this increasing
cost;
• the increasing maturity of the business is increasing costs for corporate and
executive services such as payroll tax, rent, cyber security requirements, risk
management and corporate policy development and training;
• the 2025-26 Budget includes $300,000 for expected consultant costs
associated with EPWA reforms. This does not represent an increase in ISO fees,
as ISO will be seeking to recover these costs from EPWA;
• legal costs are expected to decrease as the ACCC authorisation is in place;
• there was no expenditure in 2024-25 against Chapter 10.1 of the Rules dealing
with long-term planning functions.
Attachment 2 provides a comparison between 2024-25 actual estimated
expenditure with the 2025-26 budget.
Pilbara ISOCo Budget and Fees 2025-26 21
Table 7: Major spending changes
Pilbara ISOCo Budget
Budget 25-26
Budget 24-25
Difference
Government Services1
COORDINATOR FEE
$681,079
$410,334
$270,745
AUTHORITY FEE
$11,471
$10,787
$684
Total Government Services
$692,550
$421,121
$271,429
Recoverable Expenses
ACCESS AND CONNECTION CONSULTANT COSTS
$150,000
$300,000
-$150,000
REFORM
$300,000
-
$300,000
Total Recoverable Expenses
$450,000
$300,000
$150,000
Operating Expenses (Regulatory and Technical)
LEGAL FEES
$130,000
$450,000
-$320,000
PROFESSIONAL ADVICE
$200,000
$170,000
$30,000
SYSTEM OPERATIONS
$1,296,000
$1,224,000
$72,000
ENGINEERING CONSULTANCY
$02
$350,000
-$350,000
MODELLING
$106,000
$11,000
$95,000
TECHNICAL ADVICE
$180,000
$300,000
-$120,000
LONG-TERM PLANNING AND COORDINATION
-
$400,000
-$400,000
REGULATORY & TECHNICAL ISO LABOUR COSTS
$2,262,000
$1,387,800
$874,200
Operating Expenses (Administration)
ACCOUNTING AND AUDIT SERVICES
$56,000
$70,000
-$14,000
DIRECTOR FEES
$165,000
$165,000
-
STAFF TRAINING & DEVELOPMENT
$50,000
$51,000
-$1,000
TRAVEL
$40,000
$30,000
$10,000
INFORMATION AND COMMUNICATION
$58,000
$50,000
$8,000
CAPEX EXPENDITURE
$32,000
-
$32,000
OTHER EXPENSES
$279,500
$253,800
$25,700
GLOBAL CONTINGENCY
$300,000
$10,0003
$290,000
Pilbara ISOCo Budget and Fees 2025-26 22
Total ISO Fee Operating Expenses
$5,154,500
$4,922,600
$231,900
Total Expenses
$6,297,050
$5,643,721
$653,329
1See Section 8.2 and 8.3 for explanation of these fees
2Re-categorised to modelling
3 The 2024-25 Budget originally included $330,000 for contingency, amortisation and depreciation. The ISO has
moved amortisation and depreciation into the Other Expenses category, which includes rent, insurance, office
supplies, amortisation and depreciation. Of the contingency portion of the budget, $190,000 was reallocated to
ISO labour costs during the 2024-25 mid-year review process and $100,000 was reallocated with approval of
the Board to professional advice for higher than budgeted ISO compliance audit and cyber security audit. See
section 3.3 for further information on ISO financial governance.
Pilbara ISOCo Budget and Fees 2025-26 23
7. Major Spending Items
7.1 Government Services
Government Services ($692,550)
Government services include the Economic Regulation Authority costs (Rule 126)
and the Coordinator of Energy’s costs (Rule 128) for performing functions under
the Rules. These costs are determined by these government entities.
The company is expected to incur costs of $417,341 in 2024-25 for Government
Services. These costs relate to the revenue required to perform the functions set
out in the Rules.
The Coordinator and the Authority have provided ISO with costs expected to be
incurred in 2025-26 to perform functions set out in the Rules. These include:
• $681,079 for Coordinator Fees in 2025-26; and
• $11,471 for Authority Fees in 2025-26.
The ISO collects these fees on behalf of the Coordinator and Authority. The ISO
has no role in determining or consulting on these fees.
7.2 Recoverable expenses
Access and Connection Costs ($150,000)
Access and connection costs refer to the cost of consultants engaged by the ISO
to undertake various studies as required by the Access and Connection Procedure.
These costs are passed on to host NSPs.
The company is expected to incur $149,108 in 2024-25 in access and connection
consultancy cost.
The 2025-26 budget includes $150,000 for access and connection consultancy
costs.
While ISO expects there to be more access and connection applications made, the
ISO has also become better at estimating access and connection consultant costs.
The ISO has increased its internal technical capability to undertake some work
previously undertaken by consultants on access and connection. Building internal
ISO capacity has the following key benefits:
• increased project control, leading to
o reduced overall project costs
o reduced risk of project timelines
o reduced compliance risk
• increased internal knowledge and expertise leading to an increase in reputation
Pilbara ISOCo Budget and Fees 2025-26 24
• greater experience, opportunities and pathways for junior employees.
The ISO has also included an estimated revenue of $150,000 for access and
connection internal costs. This revenue has been deducted from the total ISO fees
in 2025-26 but has not been deducted from specific line items in the budget (i.e.
labour, software or administrative cost), as these costs will need to be paid even
if this quantum of revenue is not collected.
Reform ($300,000)
EPWA has been progressing work to evolve the Pilbara electricity system
regulatory regime. In February 2025, EPWA released two consultation papers on
the proposed regulatory changes to the Pilbara Networks Access Code and the
Pilbara Networks Rules, which can be found here: Regulatory changes in the
Pilbara.
The proposed reforms indicate significant changes to ISO functions, including the
ISO taking control room functions in-house by January 2027.
The 2025-26 budget includes $300,000 for reform. These costs relate to:
• Professional advice from contractors or consultants on reform implementation
requirements, such as control room infrastructure requirements; and
• Legal advice from contractors or consultants to review detailed design of
regulatory changes.
This budget item is not expected to impact ISO fees, as the ISO will be seeking
revenue from EPWA to recover consultant and labour costs of undertaking this
work. Only consultant costs have been included in this budget.
7.3 Regulatory and Technical Operating Expenses
Legal advice ($130,000)
The company is expected to incur costs of $442,613 for legal advice in 2024-25.
These costs relate to:
• ACCC authorisation process and implementation;
• Drafting and negotiation of ESS contracts;
• Legal advice related to Rules interpretation, contract terms and conditions and
company governance.
The 2025-26 budget includes $130,000 for legal fees. These costs relate to:
• Rule and Procedure change advice –Rule and procedure changes may be
needed to address external factors affecting the power system, such as ESS
cost allocation for near-term connection of inverter-based technology. This will
likely also include minor consequential Procedure changes. Rule change tasks
may include Rule interpretation, Rule drafting and ACCC condition 5 advice;
• ESS Procurement – drafting and negotiation of ESS contracts; and
Pilbara ISOCo Budget and Fees 2025-26 25
• Unplanned legal advice – this expense relates to a range of functions the ISO
may need to undertake under the Rules or to provide corporate and executive
services. These matters relate to Rules interpretation, Rule or Procedure
changes submitted by other Rules participants, exemptions, contractual terms
and conditions, governance advice or other work which the ISO does not have
the capacity or capability to deliver internally.
The company uses a number of firms for the provision of these services depending
on conflicts, availability, skill and cost.
Professional advice ($200,000)
The company is expected to incur costs of $170,150 for professional advice in
2024-25. These costs relate to:
• ISO compliance audit;
• Risk advisor;
• Cyber security audit;
• EBAS Review;
• Access and Connection Guidelines.
The 2025-26 budget includes $200,000 for professional advice. These costs relate
to:
• EMT Implementation Plan;
• Risk advice, including potential members of the Risk Subcommittee;
• Human Resources advice;
• Unplanned professional advice – this expense relates to a range of professional
services and expertise the ISO may need to undertake under the Rules or to
provide corporate and executive services. These matters relate to compliance
investigations or improvements, cyber security investigations or
improvements, economic advice on Rule changes, corporate policy
development or other work which the ISO does not have the capacity or
capability to deliver internally. This expense is largely not schedulable as it is
outside of the direct control of the ISO. The ISO budgets for these items to
ensure fee stability for registered NSPs. The ISO does not spend against these
items unless they are required. Any fees collected which are unspent will be
returned to NSPs as underspend.
The company uses a number of firms for the provision of these services depending
on conflicts, availability, skill and cost. The ISO procures through competitive
tender processes to identify value for money consultants.
System Operations ($1,296,000)
Systems operations include the costs of the ISO Control Desk, delegated to
Horizon Power.
Pilbara ISOCo Budget and Fees 2025-26 26
The company is expected to incur costs of $1,224,000 in 2024-25 for the ISO
Control Desk function.
The 2025-26 budget includes $1,296,000 for the ISO Control Desk costs.
Rule 125 of the Rules allow Horizon Power to recover its costs for performing ISO
Control Desk functions from the ISO. The costs recovered by Horizon Power must
not:
• exceed the amount that would be incurred by a prudent system operator
performing those functions, acting efficiently, in accordance with good
electricity industry practice, to achieve the lowest sustainable cost of
performing the functions having regard to the Pilbara Electricity Objective.
• include any allowance for corporate overheads.
• include any mark-up, return on investment or other margin.
In 2024-25, Horizon Power obtained an independent audit which found that the
ISO Control Desk costs were compliant with Rule 125. This was published on ISO’s
website.
Modelling ($106,000)
Power system modelling costs relate to developing and updating the power system
model on a six-monthly basis and associated power system software and licenses.
The company is expected to incur $185,495
1
in 2024-25 for power system
modelling costs. These costs relate to:
• One update of the power system model;
• Modelling consultant attendance at Modelling Working Group meetings;
• Modelling consultant advice; and
• Maintenance of existing PowerFactory licences.
The 2025-26 budget includes $106,000
2
for power system modelling costs. These
costs relate to:
• Power system modelling – a small continued line item for consultant costs
associated with bespoke advice regarding updating the power system model.
Significant power system modelling consultant costs have been off-set by
increase internal technical capability;
• A new EMT software licence; and
• Maintenance of existing PowerFactory licences.
1
Modelling component only. The remainder of the engineering consultancy expenses relate to consultant costs
for coverage of unexpected long term leave.
2
In 2025-26, the ISO has re-categorised Engineering Consultancy to Modelling category.
Pilbara ISOCo Budget and Fees 2025-26 27
Technical Advice ($180,000)
Technical advice relates to a range of power system studies, investigations and
reviews which the ISO is required to undertake under the Rules.
The company is expected to incur $289,778 for technical advice in 2024-25. These
costs relate to:
• 2025-26 ESS studies relating to the quantum and location of ESS;
• Constraint Rule formation; and
• Power system investigations following unplanned incidents on the power
system.
The 2025-26 budget includes $180,000 for technical advice. These costs relate to:
• Additional 2025-26 ESS studies relating to the connection of new inverter
based technologies;
• 2026-27 ESS studies relating to quantum and location of ESS;
• Ongoing constraint studies and developing constraint rules;
• Review of generation adequacy; and
• Unplanned technical advice – this expense relates to a range of investigations
and reviews the ISO may need to undertake under the Rules. These matters
relate to compliance, exemptions, incidents or other technical work which the
ISO does not have the capacity or capability to deliver internally. This expense
is largely not schedulable as it is outside of the direct control of the ISO. The
ISO budgets for these items to ensure fee stability for registered NSPs. The
ISO does not spend against these items unless they are required. Any fees
collected which are unspent will be returned to NSPs as underspend.
The company uses a number of firms for the provision of these services depending
on conflicts, availability, skill and cost. The ISO procures through competitive
tender processes to identify value for money consultants.
Long-term Planning and Coordination ($0)
The company is expected to incur costs of $86,600 in 2024-25 for a system
strength study, which was combined with the long-term planning and coordination
budget category during the 2024-25 Budget process.
The ISO has not incurred any costs against its functions in Chapter 10 of the Rules,
long term planning and coordination. In 2024-25 the ISO progressed a rule change
delaying these functions by up to 2 years to avoid duplicative work between the
ISO’s responsibilities under the Rules and EPWA’s work program (specifically the
techno-economic modelling and regulatory review underway).
The ISO will use internal resources to progress work in the preparation for delivery
of its long-term planning functions in July 2027.
Pilbara ISOCo Budget and Fees 2025-26 28
ISO Labour Costs ($2,262,000)
The company is expected to incur costs of $1,305,086 in 2024-25 for internal
resources.
The 2025-26 budget includes $2,262,000 for regulatory and technical labour costs
for approved positions. These costs relate to:
• salary, superannuation, workers compensation and payroll tax for ISO’s
approved permanent positions. The increase between 2024-25 actual to
2025-26 budget reflects the full-year costs of the new positions approved
during 2024-25; and
• increased costs are also due to an increase in the superannuation guarantee
from 11.5% to 12% and increased payroll tax.
In 2024-25 the ISO increased its internal technical capability and capacity to
perform its functions under the Rules. The ISO has been experiencing an increase
in consultant costs as the quantity and complexity of work being undertaken by
the ISO is increasing, due primarily to the connection of inverter-based
technology. This is driving up the costs of technical advice for power system
studies which are to be performed under the Rules. Internal technical capability
was found to be the lowest practicably sustainable costs of performing these
functions. Internal technical capability also has other benefits, including increased
responsiveness and reduced risk associated with sole supplier.
The ISO has identified significant cost savings which otherwise would be required
for the continued use of consultants to fulfil its functions required by the Rules.
These include:
• Modelling – consultant costs associated with updating the power model on a
6-monthly basis;
• Power system studies – undertake power system studies as required by the
Rules
o constraint studies and developing constraint rules;
o review of loss factors; and
o review of generation adequacy.
• Access and connection consultant cost (for due diligence) and associated
access and connection labour costs offset.
7.4 Administrative Operating Expenses
Administrative Expenses ($680,500)
Administrative expenses relate to the range of expenses required to run the
company, including:
• accounting and audit;
Pilbara ISOCo Budget and Fees 2025-26 29
• director fees;
• training and development;
• travel;
• information and communication technology (ICT);
• capex, including computers, telephones and office equipment;
• rent, insurance and depreciation.
The estimated actual spend on administrative expenses for 2024-25 is $537,604.
The 2025-26 budget includes $680,500 for administrative expenses.
The increasing maturity of the business is increasing corporate and executive
services costs such as payroll tax, rent, cyber security requirements, risk
management and corporate policy development and training.
Global Contingency ($300,000)
Included in ISO’s budget is a notional global contingency of around 5 percent of
operating expenses. Contingency accounts for the difficulty in budgeting for tasks
with uncertain complexity and adhoc frequency under the Rules and provides
some fee stability for NSP members. The ISO does not incur costs against
contingency unless the contingency is required and following approval from the
ISO Board.
In 2024-25, $290,000 contingency was reallocated to the following budget items:
• ISO labour costs – during the 2024-25 mid-year budget review, the ISO
identified internal resourcing gaps for access and connection and compliance
functions. As part of this process the ISO consulted stakeholders on using
contingency to fund these resourcing gaps to provide fee stability for NSP
members; and
• Professional advice – the ISO utilised contingency for higher than budgeted
ISO compliance audit costs under Rule 318.
Included in the 2025-26 budget is a notional global contingency of $300,000,
which is consistent with 2024-25 at around 5 percent of ISO’s budget.
Pilbara ISOCo Budget and Fees 2025-26 30
8. Fees
The ISO fee is payable in equal shares by the registered NSPs: Horizon Power,
APA and Rio Tinto [See Rule 129(1)].
The Procedure outlines the process whereby ISO fees will be invoiced periodically
throughout the year having regard for the solvency of the ISO. This includes:
• the ISO issues monthly invoices to registered NSPs;
• any over-collection of ISO fees will be deducted from the following years
approved annual budget [See Rule 124(2)(b)];
• the ISO may invoice registered NSPs additional fees periodically throughout
the year having regard to the solvency of the ISO.
8.1 ISO Fee
The purpose of the ISO fees is to carry out the functions of the Pilbara ISO, as
outlined in the Rules. The ISO fee is consistent with the Pilbara Electricity Objective
and only includes costs which would be incurred by a prudent person performing
the ISO’s functions acting efficiently in accordance with GEIP and seeking to
achieve the lowest practicably sustainable cost of those functions.
The ISO fee is calculated by subtracting Coordinator fees, Authority fees and
revenue items from the total expenses.
The total estimated annual ISO fee for 2025-26 is $5.04 million. Each registered
network service provided is required to pay an equal share of this fee.
Rule 124(2)(b) allows for the budget to include an adjustment with respect to the
fees collected in the previous financial year. It is estimated that the ISO will
over-collect around $500,000 (unaudited) in 2024-25 ISO fees.
In 2025-26, the ISO will levy fees on a monthly basis. The ISO will write to
registered NSPs providing the monthly ISO fee and process for return of
underspend following the publication of the 2025-26 budget.
8.2 Coordinator Fee
Rule 128 of the Rules allows the Coordinator to recover costs to carry out its
functions under Part 8A of the Act, including:
• Rulemaking functions; and
• Secretariat services provided to the Pilbara Advisory Committee.
Rule 128(3) of the Rules requires the Coordinator to notify the ISO five business
days before 30 June of the Coordinator fee.
The Coordinator fee in 2025-26 is $681,079. Each registered network service
provider is required to pay an equal share of this fee.
Pilbara ISOCo Budget and Fees 2025-26 31
The ISO collects these fees on behalf of the Coordinator. The ISO has no role in
determining and consulting on these fees. The Coordinator fee is invoiced with
ISO fees, as a separate line item.
8.3 Authority Fee
Rule 126 of the Rules allows the Economic Regulation Authority (Authority) to
recover costs to carry out its functions under Part 8A of the Act, including:
• Support the ISO in exemptions to Codes;
• Support the ISO in compliance investigations and enforcement; and
• Disputes.
Rule 126(3) of the Rules requires the Authority to notify the ISO five business
days before 30 June of the Authority fee.
The Authority fee for 2025-26 is $11,471. Each registered network service
provider is required to pay an equal share of this fee.
The ISO collects these fees on behalf of the Authority. The ISO has no role in
determining and consulting on these fees. The Authority fee is invoiced with ISO
fees, as a separate line item.
8.4 Access and Connection Fees
Rule 274R of the Rules requires the ISO to recover the ISO’s cost of performing
access and connection functions from the Host NSP by way of a fee determined
by the ISO.
The ISO may determine and publish a reasonable standard fee for a class or
function or activity (Rule 274R(2)(a)), or where there is no such standard fee, the
fees recovered must not exceed the costs which the ISO can identify as being
directly attributable to the connection request (Rule 274R(2)(b)).
The allocation and recovery of access and connection costs is outlined in section
5.2 of the Access and Connection Procedure.
The 2025-26 Budget includes $150,000 for access and connection consultancy
costs. These relate to the cost of consultants engaged by the ISO to undertake
various reviews and studies as required by the Access and Connection Procedure.
These costs are a direct pass through to Host NSPs.
The ISO also charges an hourly rate for its labour costs related to access and
connection. The ISO’s hourly rate comprises salary and administrative costs
directly attributable to its access and connection functions. The ISO has indexed
its 2024-25 Access and Connection hourly rate by CPI (Perth CPI – March 2024-
March 2025), for an updated hourly rate of $254 per hour plus GST. The ISO has
used an estimated revenue of $150,000 for internal access and connection labour
costs. This represents around 590 hours of access and connection tasks performed
in 2025-26. This revenue has been deducted from the total ISO fees in the
Pilbara ISOCo Budget and Fees 2025-26 32
2025-26, but has not been deducted from the specific budget categories, as these
costs will need to be paid even if this quantum of revenue is not collected.
8.5 Reform
EPWA has been progressing reforms to the Pilbara electricity system regulatory
regime which may result in significant changes to the ISO functions.
If ISO is requested by EPWA to provide services in relation to the design and
implementation of the new regime, it will do so on a cost recovery basis and on
the conditions approved by the ISO board.
Pilbara ISOCo Budget and Fees 2025-26 33
9. Financial risks
9.1 ISO Compliance Audit
As required by Rule 318 of the Rules, the ISO has engaged an auditor to undertake
an audit of:
a) the ISO’s internal Procedures and business processes’ compliance with the
Rules; and
b) the ISO’s compliance with the Rules and the Procedures; and
c) the ISO’s software systems and processes for software management; and
d) any other matter the ISO considers appropriate.
The ISO notes the risk that the 2025-26 budget may be adjusted in mid-year
review to implement any findings and recommendations of the compliance audit.
9.2 Rule change – Chapter 10 Long term planning functions
In 2024-25 the ISO submitted a rule change proposal to defer its Chapter 10 long
term planning functions by up to two years to avoid duplicative work between the
ISO’s responsibilities under the Rules and EPWA’s work program (specifically the
techno-economic modelling and regulatory review underway).
Since publishing the draft budget, the Final Rule Change Report was published on
17 June 2025, deferring the ISO’s Chapter 10 long-term planning functions by up
to two years. The 2025-26 budget includes $0 for long-term planning and
coordination costs. The ISO will use internal resources to progress work in the
preparation for delivery of its long-term planning functions in July 2027.
9.3 Internal Capacity
In 2024-25 the ISO continued to increase its internal technical capability and
capacity. Internal technical capability has multiple benefits, including reduced
technical consultant costs, increase responsiveness and reduce risk associated
with sole supplier. The ISO identified significant cost savings which otherwise
would be required for the continued use of consultants to fulfil functions required
by the Rules.
The ISO has very limited coverage should key personnel become unavailable. The
ISO notes the risk that if key personnel become unavailable expenditure on
consultants may need to be adjusted to fulfil functions required by the Rules.
Pilbara ISOCo Budget and Fees 2025-26 34
Attachment 1: Summary of Responsibilities
Summary of Responsibilities for ISO Functions under the Rules
Rule
Summary of Responsibilities
Frequency
Subchapter 2.2
Delegation by the ISO
ISO Delegates its real-time functions to Horizon Power
under a delegation agreement.
• Monitoring delegate compliance
• Fortnightly meetings
• Training
As required
Subchapter 3.1
Exemptions from PNR
Administer exemptions from PNR
• Assess applications for exemption
• Consult with PAC
• Public Consultation Process
• Publish Determination
On request
Subchapter 3.2
Exemptions from HTR
Administer exemptions from HTR
• Provide advice to NSP on HTR exemption
• Publish NSP determination
On request
Subchapter 3.3
Exemptions from Metering
Code and Customer
Transfer code
Administer exemptions from Metering Code and
Customer Transfer Code
• Assess applications for exemption
• Public Consultation Process
• Publish Determination
On request
Subchapter 3.4
Register of Exemptions
Maintain a register of exemptions
As required
Subchapter 3.5
Network Planning Criteria
Interactions
Manage network planning criteria interactions
• Review NSP Network Planning Criteria to identify
any interactions
• Consult with NSPs to determine how to manage
interactions
As required
Subchapter 3.6
Develop and administer procedures
• Develop and maintain 10 Procedures under the
Rules
• Consult with PAC
• Public Consultation Process
• Publish Determinations
As required or on
request of any person
Subchapter 3.7
Administer protocol framework
• Prepare and maintain protocol framework
• Monitor compliance with protocol framework
As required
Subchapter 4.1
Registration
Registration
• Maintain and publish a list of registered participants
• Maintain and publish a list of Covered Network
Elements
• Maintain a correct, complete and current set of
standing data
As required
Subchapter 4.2
Communications and
systems requirements
Maintain communications and control systems necessary
to support ISO and Rules Participants functions under
the rules, including:
Ongoing
Pilbara ISOCo Budget and Fees 2025-26 35
Rule
Summary of Responsibilities
Frequency
• Notices and communications required under the
Rules
• Data and information management system interface
requirements
• Cyber-security requirements
Subchapter 4.3
Visibility
To manage the Visibility regime
As required
Subchapter 4.4
Modelling
Create, maintain, manage and operate the Power
System Model
• Two model update releases per year
• Administer a modelling working group
• Work with NSPs to resolve NSP model issues
• Manage confidentiality in modelling
As required by
Modelling Procedure,
when changes to the
system
Subchapter 4.5
Budget and fees
To undertake the budgeting function and recover fees
• Develop draft budget
• Public consultation process
• Facilitate Board approval process
• Direct ISO Control Desk cost audit (as applicable)
• Monthly invoicing for fees
Yearly budgeting
process
Monthly invoicing
Subchapter 5.1
Metering
• Ensure access to metering data to facilitate ISO’s
functions under the Rules
• Review 30 minute trading interval
As required
Subchapter 5.2
Loss factors
Review Loss Factors
• Determine and publish reference node
• On application, reassessment of any loss factors
As required
Chapter 6
Generation Adequacy
• Chapter 6 currently suspended under Rule 151
• Review ongoing suspension of Generation adequacy
Review periodically and
following changes to
the system
Subchapter 7.3 and 7.4
System Coordination and
Planned and Unplanned
Outages
System coordination and outage scheduling
• Fortnightly system coordination meetings
• Review all planned notifiable event for
consequences for security and reliability
• Produce system coordination report
• Resolve planned outage scheduling conflicts
• Periodic review of subchapters 7.3 and 7.4
Fortnightly and as
required
Subchapter 7.5
Operating the Power
System
Through the ISO Control Desk, to participate in system
operations activities
24/7
Subchapter 7.6
Post-incident discussion
and investigations
• Undertake post-incident discussion and
investigations
As required
Subchapter 8.1
Essential System Services
Procure Essential System Services
• By 1 June each year, ISO publishes a report setting
out reasonable details of the cost and effectiveness
of Essential System Services arrangements
• Procurement of ESS
o System studies
o Procurement process
Annual
Pilbara ISOCo Budget and Fees 2025-26 36
Rule
Summary of Responsibilities
Frequency
o Public consultation process
o Contract negotiations
Subchapter 8.2 and 8.3
Energy Balancing and
settlement
Undertake monthly energy balancing and settlement
• Record nominations
• Review NSP metering data
• Run EBAS engine
• Issue payment notes
• Maintain and improve EBAS engine
• Review of administered price and tolerance margin
• Periodic review of ESS, balancing and settlement
arrangements
Monthly
Subchapter 9.1
Constrained Network
Access
Develop and administer Constraint Rules
• Undertake power system studies to develop and
publish constraint rules
• ISO control desk to monitor network constraints
• ISO control desk to issue direction
From time to time
Subchapter 9.2, 9.3, 9.4
Access and Connection
Supervision of connection standards
• Undertake due diligence to ensure all new
connections comply with the PNR and HTR
• Facilitate Connection Point Compliance applications
process
• Administer access and connection cost recovery
As required
Subchapter 10.1 and 10.2
Planning and Reporting
Undertake network coordination and planning
• Transmission development plan
• Pilbara GENSOO
• Review Subchapter 10.1’s scope and objective
(within 2 years of commencement)
Every two years.
To be published by July
2027
Subchapter 10.3
Operational reporting
Operational reporting
• Publish quarterly system coordination bulletins
Quarterly
Subchapter 11.1
Notices, publication and
records
Notices, publication and records
• Publish notices, publications and records as required
by the Rules
• Maintain website and subscriber database
• Develop and maintain record retention list
Ongoing
Subchapter 11.2
Confidential Information
Confidential Information
• Maintain processes to manage confidential
information
• Coordinate pre-disclosure process to disclose
confidential information
Ongoing
Subchapter 11.3
ISO’s power to request
information
• Request information for the purposes of fulfilling
functions under the Rules
As required
Subchapter 12.1
Compliance Monitoring and
Enforcement
Undertake rule compliance monitoring and enforcement
• Monitor rule participant behaviour, including its own
for compliance with the Rules
• Investigate alleged breaches
• Ensure confidentiality of compliance matters
Monitoring – As
required
Reporting – Annual
Pilbara ISOCo Budget and Fees 2025-26 37
Rule
Summary of Responsibilities
Frequency
• Annually provide to the Minister and publish a
compliance report for the preceding year
Subchapter 12.2
ISO Audit
Appoint an auditor to undertake an audit of:
• The ISO’s internal Procedures and business
processes’ compliance with the Rules
• ISO’s compliance with the Rules and Procedures
• ISO’s software systems and processes for software
management
2 years [July 2025],
then on
recommendation of the
auditor
Chapter 13
Disputes
Disputes
• To date, there have been no disputes under the
Rules
As required
Subchapter 14.2
Monitoring the regime’s
effectiveness
Collect and analyse data and publish a report regarding
the operation and effectiveness of:
• The interconnected Pilbara networks
• The regulatory arrangements established for Pilbara
networks under Part 8A of the Act (including the
Access Code and Rules)
2 years [July 2023],
then on
recommendation by
the ISO
Appendix 1
Consultation process
As required
Appendix 2
Develop and participate in rule change ad procedure
change proposals
As required
Corporate and Executive Services functions
Function
Summary of Responsibilities
Board meetings
Every 2 months
Strategic Planning
Annual review process
Risk
Risk sub-committee – Quarterly
Review and maintain risk register – Ongoing
Budget
Annual Budget
Mid-Year Review (if required)
Annual General Meeting
Annual AGM
Financial audit
Annual Report
ACCC Authorisation
ACCC Authorisation Final Determination (18 Dec 2024)
Authorisation granted to 31 January 2028
Implementation of conditions
Board Policies
Annual review:
• Advisory Subcommittee Charter
• Code of Conduct
• Competition Compliance Policy
• Complaint Handling Policy
• Conflict of Interest Policy and Information Protocol
• Consultation Policy
Pilbara ISOCo Budget and Fees 2025-26 38
Function
Summary of Responsibilities
• Privacy Policy
• Whistleblower Policy
• Delegations Policy
• Procurement Policy
• Cyber Security Policy
• Data Retention and Destruction Policy
• Crisis Management Plan
Human Resources
Policies
Recruitment
Finance
Board financial reporting – monthly
Invoicing NSP fees - monthly
Payment of invoices – as required
Payroll – fortnightly
Procurement
As required, in accordance with the Procurement Policy
IT and Cyber Security
IT services - ongoing
Maintain Office IT infrastructure (computers + cables + + video
conferencing) – ongoing
Cyber Security
Records and Data management
Record retention and data destruction – ongoing
Communications and stakeholder
engagement
Meetings and general engagement with stakeholders - ongoing
Website updates – ongoing
Vision 6 emails – as required
Maintain subscriber database – as required
Office accommodation
Office maintenance – ongoing
Corporate Policies
Developing, reviewing, training and ensuring compliance with
corporate policies – ongoing
Pilbara ISOCo Budget and Fees 2025-26 42
Chart 3: Comparison 2025-26 and 2024-25
Chart 3 shows a comparison between 2025-26 budget and 2024-25 budget and
estimated actual. The ISO costs are increasing as the ISO continues to build to its
base resourcing requirements to deliver all its functions and business
requirements. The ISO is increasing its internal labour costs and decreasing the
costs of consultants and contractors to decrease costs and risks for ISO and Rules
participants.