Customer Connection Guide. Document number SOP Issue number 9 Status Approver

Transcription

1 Customer Connection Guide Document number SOP Issue number 9 Status Approver Approved T Hallam Date of approval 4/8/2014

2 Table of Contents 1 SUMMARY OF RESPONSIBILITIES OUR RESPONSIBILITIES YOUR RESPONSIBILITIES OVERVIEW THE PROCESS TIME AND COSTS WE NEED TO KNOW KEEPING YOU INFORMED DISTRIBUTORS AND RETAILERS AND THE CONNECTION PROCESS IS SUPPLY ALREADY AVAILABLE REQUESTING SUPPLY GROUP APPLICATIONS DETAILING YOUR PROPERTY LOCATION ESTIMATING YOUR ELECTRICAL LOAD OUR OFFER WHAT IS A PRELIMINARY ESTIMATE? WHAT IS A FIRM OFFER? CONTESTABILITY OF CONNECTION AND AUGMENTATION CHOOSING WHO DOES THE WORK USING AUSNET SERVICES APPROVED CONTRACTORS AUSNET SERVICES CAN MANAGE TENDERING FOR YOU REQUEST CONNECTION AND MAKE YOUR PAYMENT NETWORK CONTRIBUTIONS FROM AUSNET SERVICES CUSTOMER CONTRIBUTION NETWORK CONNECTION SERVICES AND FEES COST SHARING ARRANGEMENTS Principles of Cost Sharing OTHER FEES AND CHARGES POWERLINE EXTENSION WORKS COMPLETED EASEMENTS TREE CLEARING AND OTHER ACCESS ISSUES THE POINT OF SUPPLY HOW LONG DOES IT TAKE? EXTENDING OR UPGRADING ELECTRICITY LINES INSTALLING AN UNDERGROUND ELECTRICITY LINE UNDERGROUNDING OR RELOCATION OF DISTRIBUTION ASSETS CALCULATING AUSNET SERVICES AVOIDED COSTS QUEUING POLICY FOR CONNECTION EMBEDDED GENERATORS Issue 9 4/8/ of 20

3 14.1 CONTESTABLE CONSTRUCTION OF AUGMENTATION WORKS IF YOU DISAGREE SCHEDULE OF REVISIONS Issue 9 4/8/ of 20

4 1 SUMMARY OF RESPONSIBILITIES This guide has been produced to assist customers to organise a new electricity connection to AusNet Services distribution network. Since the establishment of the National Electricity Market in Australia, all electricity customers must have a relationship with both; a) an electricity Retailer (unless they register as a code participant and purchase electricity directly from the market); and b) the electricity distributor for the local area. All customer premises must also have a NMI (National Metering Identifier unique across Australia). AusNet Services is an electricity distributor. It takes several months to organise a new connection or to upgrade your supply so giving us as much warning as possible of your requirements and providing us with all the relevant information will assist us getting you connected as soon as possible. 1.1 OUR RESPONSIBILITIES We will; target to provide you with a Preliminary Estimate that is as accurate and complete as we can reasonably make it, based on the information you provide to us. plan to send an estimate within 20 business days of receipt of the completed Supply Request. provide you with a Firm Offer within 20 business days of your payment of the fee for this service and receipt of the necessary information, particularly with regard to confirmation of permission from your neighbours for the creation of easements on their property, survey information and environmental clearances, if they are necessary. We are required to: call tenders, if you direct us to do so, for the work required to connect you to the network. implement the rules stipulated in the National Electricity Rules in calculating your connection fees. 1.2 YOUR RESPONSIBILITIES You are responsible for; providing the requested information in a Supply Request that, to the best of your knowledge, is complete and accurate. providing an easement for nominal cost on your property. engaging a licensed electricity retailer to sell you electricity. deciding if you want to accept AusNet Services offer for connection, and deciding if you want to conduct a tender process for those parts of the work that are eligible to be done by Approved Contractors, and deciding if you want AusNet Services to conduct a tender process for those parts of the work that are eligible to be done by AusNet Services Approved Contractors to connect Issue 9 4/8/ of 20

5 you to the network. informing AusNet Services of your decisions. paying for the services you request of AusNet Services. arranging and paying for any necessary tree clearing along the proposed power line. arranging and paying for all work from the point of supply to where you wish to use the electricity. maintaining the lines beyond the point of supply. understanding and meeting your responsibilities as set out in AusNet Services Customer Distribution Charter. Please note that in designated fire risk areas lines must be underground from the point of supply 2 OVERVIEW 2.1 THE PROCESS You will be asked to complete a Supply Request Form that will provide AusNet Services with information to allow us to assess what it will cost to connect or upgrade your connection and how much electricity you will use. A Supply Request is attached at the back of this guide. Once AusNet Services has received your Supply Request, AusNet Services can provide an indicative price for connecting you to our network called a Preliminary Estimate. The preliminary estimate will also indicate how long the work is expected to take and advises you on the options you have for choosing who performs the work. There is no charge for the preliminary estimate. If you decide to proceed with the connection of electricity to your property, you will be asked to pay a fee for AusNet Services to prepare a firm offer for the connection of electricity. AusNet Services will come and visit your site to prepare the technical requirements for connection of electricity. To minimise the cost to you AusNet Services will select the least cost option that is technically appropriate plus a route to avoid obstacles such as trees or easements through neighbouring properties wherever possible. 2.2 TIME AND COSTS It usually will take AusNet Services several months to design, obtain approvals and construct an electricity supply to your property. Any fees owing to AusNet Services must be paid prior to electricity being connected. You are also responsible for all costs from the point of supply (at or near your property boundary or substation on property) to the location you wish to use the electricity. Refer to your Registered Electrical Contractor for this work. A New Connection fee also applies, which will appear on your electricity bill from your chosen electricity retailer. The cost of extending or upgrading AusNet Services electricity lines to supply your property is your responsibility. AusNet Services may contribute towards your connection cost, depending on the amount of electricity you consume. Issue 9 4/8/ of 20

6 The time and cost involved in connecting electricity to your property may be influenced by: The location of existing poles on the road reserve or on a neighbour s property. Trees in the area where poles or wires are likely to go. Whether agreement is required from your neighbours to allow use of their land. Adjoining property owners who may wish to share costs. Terrain to be crossed. Whether there is easy and open access to your property. The existing load on AusNet Services network in your vicinity. 2.3 WE NEED TO KNOW For AusNet Services to accurately respond to your needs, the following information must be supplied; The location of your property. Land title records and sketches of the location of your property and proposed building helps AusNet Services respond to your enquiry. AusNet Services nearest pole details - look for the rectangular aluminium strip, or yellow and black plastic strip on the nearest pole and provide us with the numbers (typically 4-6 digits). How much electricity you plan to use. We need to ensure our line has the capacity to meet your requirement. We also need to know the times of day you expect to use the most electricity. Your Registered Electrical Contractor can help provide this information. 3 KEEPING YOU INFORMED AusNet Services has a commitment to providing professional advice and service to customers. This Guide outlines the steps AusNet Services and you must take to provide a new or upgraded electricity supply to your property. It also explains how we calculate the costs you will need to pay. Your early lodgement of a Supply Request Form with AusNet Services regarding a new or upgraded electricity supply to your property will assist us in getting you connected as soon as is possible. This Guide is for information purposes only and is not a legally binding document. The details of your and our legal obligations are detailed in any contract we agree with you and in the relevant regulations and laws covering Victoria s Electricity Industry. Nothing in this Guide should be construed as an offer of service or forming part of the terms of any agreement with AusNet Services. AusNet Services has used its best endeavours to ensure information in this Guide is correct at the time of publishing. This Guide is subject to change without notice. General information about the rights and responsibilities you have with AusNet Services, and those we have with you, is contained in our Customer Distribution Charter, available on the AusNet Services web site, or you can arrange for us to post a copy by calling us on or us at supplyrequest@ausnetservices.com.au AusNet Services is committed to safeguarding customers personal information. Details of AusNet Services Privacy Policy are available at or by calling Issue 9 4/8/ of 20

7 4 DISTRIBUTORS AND RETAILERS AND THE CONNECTION PROCESS AusNet Services is an Electricity Distributor - we own the distribution network that carries electricity but we do not sell electricity. Retailers and Distributors operate independently. You are required to choose your retailer. You must choose your Electricity Retailer before AusNet Services can make the electricity supply to your property active because Retailers are responsible for your electricity account. Your selected Retailer will advise AusNet Services when we can proceed with connecting the electricity supply to your premises. The following diagram shows the typical activities required when arranging an electricity supply to your property. Explanations of the terms used in the diagram are provided in the following pages. Connecting with AusNet Services Does an overhead or underground powerline need to be extended to your property? Yes Request a Electrical Supply Request form from AusNet Services (PH ) or visit Decide whether to ask for a Preliminary Estimate or a Firm Offer. Complete and return the Electrical Supply Request form to AusNet Services. Firm offer Estimate No AusNet Services prepares and issues a Firm Offer. Select who you wish to build the power line to your property. Advise AusNet Services of your decision. AusNet Services will issue to you an Estimate to extend supply but without a site visit. Request connection and make your payment. Complete any tree Clearing (if required) Powerline extension works completed You are required to obtain AusNet Services written authorisation prior to allowing any contractor you have selected to commence work. Contact your Electrical Retailer to arrange metering. Contact your Registered Electrical Contractor (Electrician) to arrange connection. Ask your electrical contractor to arrange for a Certificate of Electrical Safety from a licensed Electrical Inspector to approve connection of supply. Issue 9 4/8/ of 20

8 5 IS SUPPLY ALREADY AVAILABLE If your property has not previously had electricity connected but a land developer has arranged supply through AusNet Services for you, then your Registered Electrical Contractor (electrician) can normally arrange the connection of supply with us. In most cases you need to pay only a New Connection Fee (see Other Fees and Charges). The best way to determine if supply is already available is to check for poles, lines, or an underground electricity pit near your property boundary. If none are evident, it is likely that AusNet Services will need to extend an electricity line to provide you with supply. In some cases, an electricity supply is available to your property but we need to increase the capacity of our lines and electrical equipment to meet your needs. If in doubt please contact us. 6 REQUESTING SUPPLY If no electricity supply to your property exists, and you wish to begin the process for AusNet Services to extend or upgrade lines to your property, you must complete a Supply Request Form. You can obtain a Supply Request Form by calling us on Alternatively, you can complete our online Supply Request Form on the AusNet Services website at and return it to us by , post, or fax. The Supply Request asks you to: Detail your precise property location; Estimate as accurately as reasonably possible the amount of electricity that you will need in Kilowatts (your electrician can assist you to provide this information); and Request AusNet Services to prepare either a Preliminary Estimate or a Firm Offer (see What is a Preliminary Estimate and What is a Firm Offer for an explanation of these terms). 6.1 GROUP APPLICATIONS Where a group of nearby property owners wish to arrange the connection of electricity to their respective properties they may make a Group Application to share some of the costs. You can obtain a Group Supply Request by calling us on DETAILING YOUR PROPERTY LOCATION When you make a Supply Request it is important that you provide accurate details of your property location. A copy of your title or subdivision plan, along with a sketch illustrating the required location of your Point of Supply greatly assists us to correctly identify your property and where you want your supply (see The Point of Supply). If you wish to connect supply to a large rural property, you must also detail the precise location of the premises and your preferred Point of Supply. Issue 9 4/8/ of 20

9 6.3 ESTIMATING YOUR ELECTRICAL LOAD When requesting an electricity supply to your property we will ask you to estimate the amount of electricity you plan to use to ensure the line we build to your property has the necessary capacity. Domestic customers usually require about 6 kilowatts (diversified) at 240 volts single phase. Your registered electrical contractor (electrician) can help estimate your load. Before purchasing any major electrical appliances or equipment (such as under-floor heating, three-phase air conditioners or motors), please confirm that AusNet Services can meet these needs without the need to further increase the capacity of our lines. If an increased line capacity is necessary additional costs may apply to you. For commercial, industrial and other non-domestic loads AusNet Services will require detailed load information. AusNet Services requires this information to be provided before it can process your Supply Request. AusNet Services recommends that you consult your registered electrical contractor (electrician) to help you determine your required load information. You need to calculate your Load Estimation as accurately as reasonably possible as it affects the total cost of the work and the proportion of the total cost that we will contribute (Network Contribution) for providing supply. 7 OUR OFFER Based on the information you provide with your application we will provide you with a; Preliminary Estimate; and Firm Offer. 7.1 WHAT IS A PRELIMINARY ESTIMATE? A Preliminary Estimate is an indicative price for providing an electricity supply to your property based on the information you have provided. When preparing a Preliminary Estimate, AusNet Services does not visit your property or prepare a detailed design. AusNet Services does not charge you for the first Preliminary Estimate. However, a fee does apply for any subsequent estimates requested. We calculate a Preliminary Estimate by assessing how far we may need to extend our lines to reach your property and determining the type of line that may be required based on the information you provide to us. You can assist the preparation of a Preliminary Estimate by providing us with as accurate and detailed information as you reasonably can. We then estimate the costs for project management, design, construction and materials based upon previous projects we have completed similar to yours. In a Preliminary Estimate we tell you: Approved Contractors are permitted to complete particular tasks called Contestable Services (see Using Approved Contractors) If AusNet Services will contribute to the costs, and on what terms (see Network Contributions) Issue 9 4/8/ of 20

10 If Cost Sharing arrangements are in place with existing customers on the line, when you may need to repay some of their original costs for their connection (see Cost Sharing Arrangements). It is important to note that a Preliminary Estimate is indicative only and non-binding. A fee will apply if you request a Firm Offer. A Preliminary Estimate does not take into account costs that may arise: When negotiating easements if we need to extend lines across neighbouring properties not owned by you (see Easements); If information you provide about trees, terrain and distances is inaccurate. If actual site conditions vary from those anticipated, for example rock content in the ground. If a longer alternative route is required to avoid trees or overcome objections from third parties; If you need to clear trees (see Tree Clearing and Other Issues); or When meeting regulatory requirements, such as those applied by the Department of Sustainability and Environment and local Councils. You can pay the fee and get a Firm Offer without first asking for a Preliminary Estimate. 7.2 WHAT IS A FIRM OFFER? A Firm Offer for Network Connection Services provides a fixed price from AusNet Services for making electricity supply available to your property. We physically inspect your site and prepare a detailed technical assessment of the best available option to supply electricity to your property. We negotiate easements with neighbours when required (see Easements), select a route that minimises any necessary tree clearing, and prepare a design to extend our lines to your property. You are required to request a Firm Offer for Network Connection Services from AusNet Services by completing the Supply Request Form and selecting a Firm Offer instead of a Preliminary Estimate. In a Firm Offer we tell you what: particular tasks Approved Contractors are permitted to complete, called Contestable Services (see Using Approved Contractors). how much the supply will cost. AusNet Services will charge for the Contestable Services. AusNet Services will charge for the Non-Contestable Services (called Network Connection Service Fees). AusNet Services will contribute to the costs and on what terms (see Network Contributions) you must contribute towards the cost of the extension works; and you must contribute towards costs other customers may have already paid for an initial extension (see Cost Sharing). AusNet Services does not perform tree-clearing services, and the cost of tree clearing is not included in our Firm Offer. When you request a Firm Offer, a fee is payable to AusNet Services (see Network Connection Service Fees). The fee will vary depending on the project, and we will advise you of the fee amount when you request a Firm Offer. Issue 9 4/8/ of 20

11 The fee partly covers the costs associated with field visits, obtaining easements, preparing designs and contracts, and calculating firm costs. A Firm Offer is valid for up to 60 days from the date of the offer. 8 CONTESTABILITY OF CONNECTION AND AUGMENTATION There are certain tasks which only AusNet Services can do, such as network system design, audits and tie ins. These tasks are called Network Connection Service (see Network Connection Service Fees). AusNet Services will allow customers to arrange most other works, including the tendering and construction of extension works themselves. The cost of Contestable Services will depend on a number of variables, including: The distance we need to extend our lines to your property; Avoiding trees or overcoming objections from third parties; The type and size of equipment used to provide the amount of supply you have requested; and Meeting regulatory requirements, such as those applied by the Department of Natural Resources and Environment and local Councils. A compliance audit of the Approved Contractors Contestable Service work must be completed to ensure compliance with our construction standards prior to connecting to our system. This inspection is necessary because AusNet Services is responsible for the safety and future maintenance of the line after connection occurs. An Audit Fee is payable by you for this inspection and any necessary subsequent inspections. 8.1 CHOOSING WHO DOES THE WORK Contractors other than AusNet Services can complete some tasks required to provide electricity supply to your property, provided they are Approved Contractors. These are called Contestable Services.If any of the tasks required to provide supply to your property are identified as Contestable Services, we will ask you to choose if you wish AusNet Services to complete these tasks or if you wish to use an Approved Contractor. You have two options: Option 1 AusNet Services manages and arranges all of the work, including: Any Non-Contestable Services (Network Connection Services). Any Contestable Services Option 2 Under this option you manage the extension works yourself and select your own contractors. You have 2 main choices: Issue 9 4/8/ of 20

12 1. You run your own tender process and select which Approved Contractor you wish to use for the Contestable Services. The Approved Contractor will provide the Contestable Services and you will take responsibility for their management, or 2. You ask AusNet Services to run a tender process on your behalf. AusNet Services will run the tender at your cost. You then select which Approved Contractor you wish to use for Contestable Services. The Approved Contractor will provide the Contestable Services and you may take responsibility for their management or negotiate with AusNet Services to manage the contractor on your behalf. Fees apply in this instance. AusNet Services will complete any Non-Contestable Services, particularly Network Connection Services such as design approval, final connection of supply, updating systems and drawings, and interconnection contract preparation. 8.2 USING AUSNET SERVICES APPROVED CONTRACTORS Approved Contactors have demonstrated to AusNet Services that they have the qualifications, training, experience, and quality systems of work to complete Contestable Services. Contestable Services can include: Project management Some design, including surveying and drafting services; and Construction, which includes the provision of all materials and as-constructed plans. When you choose an Approved Contractor to perform Contestable Services, AusNet Services may require a Refundable Guarantee from you to cover any costs associated with fixing faults or defects that may arise from the contractor s work. Any unused portion of the Refundable Guarantee will be returned after one year from completion of the connection works. A compliance audit must be completed for the Contestable Service work to ensure compliance with our construction standards prior to connecting to our system. This inspection is necessary because AusNet Services is responsible for the safety and future maintenance of the line after connection occurs. An Audit Fee is payable by you for this inspection and any necessary subsequent inspections. It is important to note that if you nominate an Approved Contractor, other than AusNet Services, to perform any Contestable Services, we will be unable to provide a final date for connection, as your Approved Contractor controls when particular tasks are completed. 8.3 AUSNET SERVICES CAN MANAGE TENDERING FOR YOU You can choose to manage the tender process yourself or alternatively you can request AusNet Services to call and manage the tender on your behalf. Where you have elected AusNet Services to manage the tender, we calculate the cost of calling tenders based on the hours of work required, plus expenses (postage, printing etc). You will be required to pay these costs if you request us to proceed with a tender on your behalf. Currently fees typically range between $350 & $2,500 dependant on the scope of the works to be undertaken. Where works are of a more technical complex and consist of major works, tendering fees will need to be confirmed upon application. Issue 9 4/8/ of 20

13 Due to the additional cost associated with calling a tender there may be little if any benefit realised for minor projects. 9 REQUEST CONNECTION AND MAKE YOUR PAYMENT When you request a connection to the AusNet Services network, you will be required to indicate whom you choose to do the work and make a payment to AusNet Services. AusNet Services follows the approach advocated by the Essential Services Commission when calculating both the Network Contribution and the Customer Contribution: Network contributions are non-discriminatory the contribution remains the same whether or not the work necessary to connect supply is completed by AusNet Services or by an Approved Contractor. The Customer Contribution is charged for connecting to the network only when it is expected the customer will contribute less in network tariffs than the incremental cost of providing supply. 9.1 NETWORK CONTRIBUTIONS FROM AUSNET SERVICES AusNet Services may contribute part of the cost of extending or upgrading our lines to your Point of Supply. This is known as our Network Contribution. The Network Contribution is calculated on the least overall cost technically acceptable method of providing electricity to your Point of Supply. Our calculation take into account: The amount of electrical capacity you have requested; The amount of electricity you plan to use; The cost to extend or upgrade our lines to provide supply to your property; and The expected life of the connection. The value of our Network Contribution depends on the amount of electricity you plan to use. It is in your interests to advise us accurately of the amount of electricity you will need, because this influences the type of line we build and the amount of customer contribution required. For work constructed by AusNet Services we advise you in our Firm Offer of the maximum amount of the Network Contribution, when, and how it will be paid. The amount of any Network Contribution will be provided in the following ways: If AusNet Services completes all the work (Option1) we deduct the Network Contribution from the total amount payable by you when we issue the Firm Offer. You then contribute the balance of the cost of the work. If an Approved Contractor completes some of the work (Option 2), AusNet Services pays the Network Contribution when the new lines are connected to our network and the customer takes permanent supply. 9.2 CUSTOMER CONTRIBUTION The customer contribution is made up of: Non Contestable Service Charges (particularly Network Connection Service Fees) Contestable Service Charges Cost sharing contributions Issue 9 4/8/ of 20

14 Other fees and charges. These fees and charges are explained below. 9.3 NETWORK CONNECTION SERVICES AND FEES These fees cover the cost of communicating with you throughout the connection process as well as tasks only AusNet Services can perform such as network design, audits of the construction work and tie-ins. We will provide the charges for these services in our Firm Offer. Regardless of whether or not you use an approved contractor to complete the Contestable Services, there are a number of other tasks that only AusNet Services can complete. These are called Network Connection Services. The Network Connection Services costs are recovered through a set of Fees consisting of: (a) The Project Fee which covers the costs of: Recording and maintaining customer and property details; Obtaining non-complex easements; Preparing letters to you, letters to your contractors and other authorities, and the preparation of a Firm Offer and Contracts; Confirming the customer electrical load, assessing the impact on our network capacity, and determining any system changes necessary to make supply available; Identifying possible routes for extending lines to the customer property, preparing a work program, investigating and calculating cost sharing arrangements, and advising the customer on available costs and alternative options for extending lines to the property; and Planning tie-in requirements for the connection of the power line. (b) The Contract Fee which covers the costs associated with: Adding and updating details of poles, wires, and equipment to AusNet Services maps and databases; Approving line designs prepared by approved contractors and completing field inspections; Electrical operation planning and approvals, arranging line shutdowns if required, and notifying other customers; and Gaining approval from other authorities. (c) The Tie-in Fee which covers the costs of making the final power line connection to the AusNet Services network. These include: Field supervision and planning of the tie-in works; Field electrical operations; and Labour to physically connect the works to the AusNet Services network. All fees include GST, and are payable before connection of supply is made to your property. The fees are based on the typical time taken to complete the above activities for the particular type of line extension. Issue 9 4/8/ of 20

15 Network Fees for an individual customer extension less than 50kVA are shown below. The Network Fees for larger projects or multiple customer extensions are available upon request and will vary according to the complexity and location of the work. 9.4 COST SHARING ARRANGEMENTS You should not assume that a power line that passes, or even crosses your land, means electricity is available for only the cost of a New Connection Fee (see Other Fees and Charges). Where another customer has already paid for the initial extension of a power line, future customers taking a low voltage supply from that line within the Sharing Period will be required to pay an equitable portion (not necessarily equal) towards the cost of the shared line. This means that before your property can be connected to an existing power line, AusNet Services must check to see if you will be required to pay a cost share amount which is then paid back to the initial customer. The amount of any cost sharing payment you will need to make will be included in our Firm Offer. At any point during the sharing period, customers may share costs equitably. If other customers connect after you, you may also receive a Cost Sharing rebate PRINCIPLES OF COST SHARING Cost sharing can be complex to work out. Each case needs to be determined individually to maintain equity between customers. Domestic and small business customers who use less than 50kVA (a normal domestic customer uses about 6kVA diversified) can often share Customer Contribution costs if they connect to the same power line at different times within a Sharing Period of 7.5 years. The initial customer pays the cost of a new power line at the outset. AusNet Services then collects Cost Shares from future customers to rebate back to the initial customer(s). Cost Sharing applies within each separate high voltage extension, where a new customer is connected at low voltage, (but not a separate high voltage extension). Cost sharing does not apply between separate high voltage extensions, and there is a practical reason for this. If we were to try and apply cost sharing between high voltage extensions then each new customer would, in theory, also need to pay a share of the cost of every previous high voltage extension built in the past 7.5 years. Obviously this arrangement would be impracticable and it is therefore necessary to limit cost sharing within each separate high voltage extension. When we calculate Cost Sharing arrangements between you and existing customers, we identify who paid for the existing power line within the past 7.5 years. You do not contribute to costs paid by other customers before then, and you do not receive a rebate from connections made more than 7.5 years after the initial extension was completed. Where a new customer can be supplied from more than one extension (such as with a corner lot), the customer is connected to the extension that provides the least overall cost technically acceptable method for that particular customer. When there has been a change in property ownership AusNet Services will pay any cost share rebate amount to the person who last purchased the property. That purchaser is deemed to Issue 9 4/8/ of 20

16 have included adjustment for the future receipt of cost sharing amounts in the purchase price of the property. 10 OTHER FEES AND CHARGES Other fees and charges may arise when providing you with a connection to supply. These fees and charges are based on the actual costs incurred by AusNet Services, and may include: New Connection Fee. A new connection fee is applied in addition to any costs for extending or upgrading the AusNet Services lines. The New Connection Fee is typically included in your electricity account from your chosen electricity retailer and contributes to the costs to connect your premises to the AusNet Services system. Special metering or servicing arrangements, for example if you request us to install an underground service line when a less expensive overhead service line is possible. Maintaining clearances from an electricity line. This may involve the construction of a temporary protective cover when building works are being performed close to our lines that present a risk of equipment or workers contacting the lines. Complex easement negotiations where it is necessary for multiple site visits, discussions, and correspondence with neighbouring property owners. 11 POWERLINE EXTENSION WORKS COMPLETED After you request connection to AusNet Services network and make the required customer contribution, work may commence to extend the network to your property. If you have decided to use approved contractors to complete the work you should ask them to commence their work. Important considerations related to the extension works include easements, tree clearing and your point of supply. Each are discussed in more detail below EASEMENTS Easements are written agreements that allow AusNet Services to install and maintain its electricity distribution lines over and/or under private property. Extending new lines across private property in rural areas, either to reduce the length of the line or to avoid tree clearing in road reserves, can significantly reduce construction costs. AusNet Services will ask each property owner to grant a free easement over a strip crossing their land for the payment of 10 cents (minimum tender, payable on request). A Memorandum of Agreement for an easement form is completed and signed by the landowner and then held by AusNet Services. For overhead lines the easement is rarely registered on title but with underground lines it is sometimes considered necessary for safety reasons to register these lines on title. Neighbouring property owners can refuse permission for AusNet Services to build new lines across their property. This can significantly affect the costs and time necessary to make supply available, particularly if we need to choose a longer alternative route. It is important to note that when AusNet Services must negotiate easements long delays may occur before a Firm Date for connection can be provided. Issue 9 4/8/ of 20

17 11.2 TREE CLEARING AND OTHER ACCESS ISSUES AusNet Services endeavours to limit the need for tree clearing when building new lines. However, some tree clearing may be necessary to minimise potential interruptions to supply, maintain public safety, and prevent bushfires. You will be required to arrange and pay for any necessary tree clearing, treatment of stumps, and removal of all debris along the route of the proposed power line, including road reserves and property crossings. It is important you do not begin tree clearing until you have obtained all necessary approvals from your local Council, the Department of Natural Resources & Environment, and any other approval bodies that apply regulations in your area. You must also confirm the final route of the proposed electricity line with AusNet Services before commencing approval processes or commencing clearing works. Tree clearing is to be completed in accordance with the Code of Practice for Electric Line Clearance (Vegetation) 1999 administered by Energy Safe Victoria, In addition to providing a clear path through trees for our lines and poles to your property you are also responsible for removing other obstacles along the route, such as large mounds of dirt, or derelict buildings. You must also ensure access for heavy vehicles which may be used during construction of the line on your property and maintain access for future maintenance THE POINT OF SUPPLY The Point of Supply is the point where AusNet Services line connects to your property as defined in the Electricity Safety Act. When you receive a Firm Offer from AusNet Services, we will advise you of your Point Of Supply. The Point of Supply will normally be at: An underground line the point at which the line crosses the boundary of the property (usually in an underground pit) A short aerial service line from a AusNet Services pole at the first point of attachment of that service line within the property (up to maximum 20 metres into your property, usually at the front of the premises) or A high voltage line and substation within the property at the low voltage terminals of that substation. AusNet Services is responsible for maintaining the lines and poles up to the Point Of Supply. Overhead or underground private lines located on your property after the Point Of Supply are called Private Electric Lines (PEL). You are responsible for the maintenance of PELs on your property in accordance with the Electricity Safety Act (Installation) Regulations administered by the Office of the Chief Electrical Inspector. In fire risk areas, the Electricity Safety Act (Installation) Regulations state that customers must install underground lines from the Point of Supply to their installation. AusNet Services, or the Country Fire Authority, can advise you if your property is located in a bushfire risk area. AusNet Services advises you to contact a Registered Electrical Contractor (electrician) to determine the costs of installing your Private Electric Line as these costs will increase the further the Point Of Supply is located from your premises. Issue 9 4/8/ of 20

18 In rural areas, AusNet Services may provide a short overhead line from one of our poles located outside your property only. The maximum length of this service may be up to 20 metres inside your property and must be directly onto the premises. On large rural properties AusNet Services can build a high voltage line and substation at your cost into your property to reduce the length and cost of your PEL, and to provide a higher quality electricity supply. In this case the Point of Supply is located at the low voltage terminals of the substation. 12 HOW LONG DOES IT TAKE? 12.1 EXTENDING OR UPGRADING ELECTRICITY LINES Once you have accepted AusNet Services Firm Offer, and request us to proceed with construction work, it can take a further 2-3 months before construction work can be completed and electricity connected to your property. During this time AusNet Services completes the detailed designs, surveys, plan drawings, material purchases and delivery, arranges electricity shutdowns, advice to neighbours, and permission from authorities such as councils and Telstra. We may be able to complete the work in less time, but it may mean an additional cost to you, if we need to reprogram other work, pay for additional resources, or arrange work for after business hours INSTALLING AN UNDERGROUND ELECTRICITY LINE If we need to install an underground service line and pit to provide supply to your property, you should allow around six weeks for AusNet Services to complete the work after you have accepted your contracts, and provided easements are not required through neighbouring properties. Although the actual underground service line installation may take only a few days, we must prepare contracts, schedule trenching contractors, and obtain approvals from other relevant authorities. If we are installing the underground service line through a neighbouring property the property owner can influence where AusNet Services is able to place our lines and can also refuse permission for us to install lines across their property. It is important to note that when AusNet Services is required to negotiate easements, considerable delays and cost can occur before a Firm Offer for connection can be provided to you. This can also have a significant impact on the costs and time to make a supply of electricity available, particularly if we need to choose a longer alternative route. 13 UNDERGROUNDING OR RELOCATION OF DISTRIBUTION ASSETS Where AusNet Services receives a request to underground existing distribution assets in order to reduce the threat to any person s health and safety or the aesthetics of an area, AusNet Services will contribute to the cost to the extent of it s identified avoided costs. Issue 9 4/8/ of 20

19 13.1 CALCULATING AUSNET SERVICES AVOIDED COSTS AusNet Services will determine the present value of any avoided operations and maintenance costs (including vegetation management costs) as well as the present value of the net impact on the future capital costs of replacing the affected assets. 14 QUEUING POLICY FOR CONNECTION EMBEDDED GENERATORS With the encouragement of renewable energy in recent years, there has been increasing interest from medium sized generators to embed themselves in distribution networks. Many of these proposals (for example wind farms) have lengthy gestation periods between the initial investigation of network capacity and the decision to commit a project. Embedded generators are required to fund the incremental costs of network augmentation. The incremental cost usually increases for each subsequent proposal. Cost certainty is a critical issue when generators are sourcing funding for a new project. When AusNet Services is in a position of concurrently evaluating multiple enquiries for embedded generators to connect to a common part of the AusNet Services network, AusNet Services will employ an auction process to establish a deemed order of priority of access to the network. There will be no need for an auction process in the event that a proposal can progress to the point of commitment to a connection agreement without AusNet Services having received any other enquiries for generator connection to that part of the network CONTESTABLE CONSTRUCTION OF AUGMENTATION WORKS AusNet Services will allow customers to arrange most other works, including the tendering and construction of supply extension. The principles to those outlined in sections 8 and 9 will also apply to augmentations required to connect generators. 15 IF YOU DISAGREE AusNet Services Customer Connection policies and practices are consistent with the approach advocated by Victoria s Essential Services Commission. If you do not accept our proposals or assessments we invite you to discuss the issue with the AusNet Services Project Manager you have been dealing with. If a formal review by AusNet Services does not provide satisfaction you can contact the Essential Services Commission. Who do you Contact? If you have any questions about the information in this customer guide or your electricity supply, please contact: Customer Projects General Enquiries (24 hours) Facsimile Service Difficulties and Faults (24 hours) Telephone Interpreter Issue 9 4/8/ of 20

20 or AusNet Services Customer Projects 8 Beaconsfield Ave BEACONSFIELD VIC 3807 The AusNet Services website contains up to date information about all aspects of electricity supply and service. You can also contact us through the website. Hearing impaired customers are encouraged to use this channel. Essential Services Commission Level 1, 35 Spring St, Melbourne 3000 Postal Address as above Enquiries (03) Facsimile (03) Website Choice Of Electricity Retailer The Essential Services Commission can provide you with the latest information on electricity retailers and contact details for them. Energy Safe Victoria Level 3, 4 Riverside Quay, Southbank Victoria 3006 Postal Address PO Box 262 Collins St West Melbourne 8007 Enquiries (03) Facsimile (03) Website Energy and Water Ombudsman (Victoria) GPO Box 469D Melbourne 3001 Enquiries Facsimile Telephone Interpreting Service (TTY) for Hearing Impaired Customers Website 16 SCHEDULE OF REVISIONS Issue Date Details of Change 7 27/4/2006 Clause Reference to National Electricity Code changed to National Electricity Rules Clause 13.1 Reference to TXU replaced with SP AusNet. 8 11/3/2008 Clause 1.1 Our Responsibilities response time changed from 10 to 20 days. 9 4/8/2014 Document re-branded from SP AusNet to AusNet Services Issue 9 4/8/ of 20