Note This attachment forms part of the AER's draft decision on TasNetworks' distribution determination for 2017–19. It should be read with all other parts of the draft decision. The draft decision includes the following documents: Overview Attachment 1 – Annual revenue requirement Attachment 2 – Regulatory asset base Attachment 3 – Rate of return Attachment 4 – Value of imputation credits Attachment 5 – Regulatory depreciation Attachment 6 – Capital expenditure Attachment 7 – Operating expenditure Attachment 8 – Corporate income tax Attachment 9 – Efficiency benefit sharing scheme Attachment 10 – Capital expenditure sharing scheme Attachment 11 – Service target performance incentive scheme Attachment 12 – Demand management incentive scheme Attachment 13 – Classification of services Attachment 14 – Control mechanisms Attachment 15 – Pass through events Attachment 16 – Alternative control services Attachment 17 – Negotiated services framework and criteria Attachment 18 – Connection policy Attachment 19 – Tariff structure statement
a maximum overhead rate. The combination of these individual components formed our maximum total labour rates for each labour category. It was this maximum rate that was important in our deliberations. The components that make up that maximum were of less relevance and individually did not form the basis of our reasoning. Our assignment of TasNetworks' proposed labour rates to our labour categories and comparing its labour rates to our Tasmanian maximum total labour rates, are set out in table 16.2. The table also includes the respective jurisdictional maximum total labour rates for transparency on how the Tasmanian maximums have been developed. Table 16.2 Comparison of TasNetworks' proposed labour rates and the AER maximum total labour rates ($2017–18) TasNetworks labour categories TasNetworks labour rates (17-18) AER labour categories AER maximum Tasmanian labour rates AER maximum Victorian labour rates AER maximum New South Wales labour rates AER maximum Queensland labour rates Administration (implied) 224.47 Administration 98.95 98.95 95.90 80.24 Distribution operator 69.65 Technical specialist 197.52 173.16 153.79 197.52 Electrical inspector 58.32 Field service coordinator 72.38 Designer 70.05 Engineer 191.17 185.52 191.17 185.19 Project manager 86.08 Distribution electrical technician 62.25 Apprentice 66.22 Field worker 173.16 173.16 144.08 135.79 Cable joiner 60.56 Customer metering 63.09 Customer crew 62.13 Distribution linesman 56.35 Distribution linesman–live 63.38
Construction audit fee (small) 951.19 Quoted service Construction audit fee (large) 1,902.38 Quoted service Construction audit fee (major) 2,951.90 Quoted service Source: AER analysis; TasNetworks, Indicative pricing schedule: Regulatory control period 1 July 2017 to 30 June 2019, January 2016. Table 16.9: TasNetworks' quoted services Quoted service group Service name Description New design and construction fees Standard application fee Administrative costs of application assessment Application fee – Customer choice Connection assessment costs and preparation of specifications for a customer choice project Design cost – Design audit fee (small)– minimum service Audit of a design incorporating low or high voltage elements Design cost – Design audit fee (large) – minimum service Audit of a design incorporating high voltage and low voltage elements Design cost – Design audit fee (major) – minimum service Audit of a design incorporating high voltage, low voltage and substation elements Design cost – Design audit fee (small)– maximum service Audit of a design incorporating low or high voltage elements including a site visit Design cost – Design audit fee (large) – maximum service Audit of a design incorporating high voltage and low voltage elements including a site visit Design cost – Design audit fee (major) – maximum service Audit of a design incorporating high voltage, low voltage and substation elements including a site visit Construction cost – Construction audit fee (small) – minimum service Audit of low or high voltage construction with 1‐3 project audit gates Construction cost – Construction audit fee (large) – minimum service Audit of high voltage and low voltage construction with 1‐3 project audit gates Construction cost – Construction audit fee (major) – minimum service Audit of high voltage, low voltage and substation construction with 1‐3 project audit gates Construction cost – Construction audit fee (small) – maximum service Audit of low or high voltage construction with 5‐7 project audit gates Construction cost – Construction audit fee (large) – maximum service Audit of high voltage and low voltage construction with 5‐7 project audit gates Construction cost – Construction audit fee (major) – maximum service Audit of high voltage, low voltage and substation construction with 5‐7 project audit gates Non-standard services Removal or relocation of TasNetworks' assets at a customer's request (for example, the Tasmanian Government) request
Metering Table 16.11 Draft decision metering charges (nominal, cents per day) 2017-18 2018-19 Business LV – Single phase Capital 3.012 3.085 Non–capital 2.972 3.045 Business LV – Multi phase Capital 6.025 6.172 Non–capital 5.947 6.092 Business LV – CT meters Capital 7.790 7.981 Non–capital 7.689 7.878 Domestic LV – Single phase Capital 2.912 2.983 Non–capital 2.874 2.944 Domestic LV –Multi phase Capital 6.042 6.190 Non–capital 5.964 6.110 Domestic LV - CT meters Capital 7.477 7.660 Non–capital 7.380 7.561 Other meters Capital 5.317 5.447 Non–capital 5.248 5.376 Source: AER analysis. Note: Prices for 2018–19 are indicative only and will be adjusted for actual CPI during the AER's annual pricing approval processes. Table 16.12 Draft decision on X factors for metering charges (per cent) 2018–19 X factor (non–capital component) 0.0 X factor (capital component) 0.0 Source: AER analysis. Table 16.13 Indicative annual metering charges ($ nominal) 2016–17 2017–18 2018–19 Business LV – Single phase 28.46 21.84 22.38 Business LV - Multiple phase 56.94 43.69 44.77 Business LV –CT meters 73.63 56.50 57.88 Domestic LV – Single 27.52 21.12 21.63