serviced lots, subdivisions and amalgamations. (commercial or industrial load); developers of residential and commercial subdivisions; and Government departments, local councils or similar authorities acting on behalf of specific endusers or community. large individual network users; small individual network users; and generator users. Subdivisions, amalgamations and re-zoning Developer to contribute the full costs associated with the assets downstream of the connection point to the shared network. Unchanged. Serviced lots Capacity charge of $50 per kVA increase in demand the existing supply. $5000 for additional substations required. Full cost of any high voltage line on private property. Developer to contribute to the full cost. Small individual network user Upgrade to serviced property Capacity charge of $50 per kVA increase in demand the existing supply. $5000 for additional substations required. PV (attributed costs of connection) minus PV (expected revenue less shared network costs). Small individual network user Extension to unserviced areas $15 000/km for single phase extension, and $21 000/km for threephase. Shared equally between applicants, less the total of all $2000 PV (attributed costs of connection) minus PV (expected revenue less shared network costs).
electricity distribution transferred to the AER with standing and market contracts in existence. Principles Independent Pricing and Regulatory Tribunal considers that the principles for capital contributions are consistent with the approach to regulating network prices: 1) Reflect economic costs by: being subsidy free; signaling future investment costs; discouraging uneconomic bypass; allowing negotiations. 2) Return the allowed revenue stream. 3) Promote equity, stability and consistency of outcomes. Contribution must not exceed the amount that would be required by a prudent service provider acting efficiently, in accordance with good electricity industry practice seeking to achieve the lowest sustainable cost of providing the service. Economic efficiency test: existing customers will be no worse-off following the introduction of a new user. No crosssubsidisation from other customers. Signal to customers efficient costs of network connection. Equity – new customer should contribute to the costs of the existing shared network. Equity, transparency, consistency, user pay signal, reasonable The capital contribution charge payable by the customer may be an amount no more than the additional costs incurred by the distributor in providing that infrastructure. Appropriate economic, cost reflective pricing signals to network users, Commercial viability of connections to the network. Equitable outcomes. Simplicity. Document developed by network providers Ausgrid has developed Capital Contributions and Asset Relocation Works Guidelines (December 2008). SP Ausnet has developed a Customer Connection (2008) which includes information on customer contributions SA Networks has a Connection Policy (developed in January 2013) which includes a number of provisions relating to capital contributions. Western has a Contributions Policy. Energex has a Capital Contributions Policy (May 2010). Ergon Energy Corporation has developed a Capital Contributions (Associated with Network Connections) Policy (April 2005). Aurora Energy has developed a Customer Capital Contributions Policy (effective 1 July 2012). ActewAGL has not introduced a capital contributions policy. PWC Networks is proposing to amalgamate 2 capital contributions policies (DSEP and NCCP) into a single document.