Customer Connection Policy

Transcription

1 01 July 2016 Custmer Cnnectin Plicy Cnnecting electricity supply t yur premises in United Energy's regin Public

2 This page is intentinally blank Cnnectin Plicy 2

3 1 Table f Cntents 1 United Energy Rules, Objectives & Obligatins Custmers and Services Offered UE Offers and Payment Cnditins Basic Cnnectin Service: Retail Custmers Negtiated Cnnectin Service: Retail Custmers Negtiated Cnnectins Service: Real Estate Develpers Negtiated Cnnectins Service: Undergrunding & Relcatin f Netwrk Assets Negtiated Cnnectin Service: Embedded Generatin Custmer Cnnectins Embedded Netwrks Other matters Cntact Details Glssary Cnnectin Plicy 1

4 1 United Energy United Energy (UE) perates under a distributin licence that is issued by the Essential Services Cmmissin f Victria (ESCV). Our netwrk cvers abut 1472 square kilmetres and we distribute electricity t apprximately 665,000 custmers acrss east and suth-east Melburne and the Mrningtn Peninsula. 1.1 Distributrs & Retailers United Energy (UE) is an electricity distributr. UE wns the distributin netwrk that carries electricity. We are nt a retailer and therefre des nt sell electricity. Custmers must chse an electricity retailer befre we can energise the electricity supply t yur premises because a Retailer is respnsible fr yur electricity accunt. A list f electricity retailers can be fund n the Essential Services Cmmissin website n Figure.1 United Energy Distributin regin Cnnectin Plicy 2

5 2 Rules, Objectives & Obligatins 2.1 Intrductin This dcument is the Cnnectin Plicy fr ur electricity distributin netwrk. This Cnnectin Plicy sets ut the circumstances in which we may require a retail custmer r real estate develper t pay a cnnectin charge fr the prvisin f a cnnectin service. It specifies: the categries f persns that may be required t pay a cnnectin charge and the circumstances in which such a requirement may be impsed; the aspects f a cnnectin service fr which a charge may be made; the basis n which cnnectin charges are determined; the manner in which cnnectin charges are t be paid (r equivalent cnsideratin is t be given); and a threshld belw which a retail custmer (nt being a nn-registered embedded generatr r a real estate develper) will nt be liable fr a cnnectin charge fr an augmentatin. In additin, this Cnnectin Plicy cmplies with the AER s cnnectin charge guidelines and the cnnectin charging principles fund in Chapter 5A f the Natinal Electricity Rules. Chapter 5A applies t cnnecting lad fr: retail custmers, r a retailer r ther persn n behalf f a retail custmer, r a real estate develper. nn-registered embedded generatrs and micr embedded generatrs (that is, embedded generatr cnnectins that cmply with Australian Standard AS4777 r Embedded Generatin up t 5MW). 2.2 Plicy Objectives Our bjective is prvided t assist custmers t understand their rights and bligatins in requesting a new r upgraded electricity cnnectin t ur netwrk. This plicy dcument set uts: The different cnnectin services that UE ffers The mdels and framewrk that underpin these services Relevant fees & charges and Payment cnditins Hwever, fr a cmprehensive assessment f their cnnectin needs custmers shuld cntact UE at ur ffice (see Cntacts). Further infrmatin relating t the rules and guidelines relevant t this plicy is als available frm the ESCV, the Australian Energy Regulatr (AER) and Energy Safe Victria (ESV). 2.3 UE s bligatins We have an bligatin that is set ut in ur Distributin Licence t ffer t cnnect custmers. Our Distributin Licence bliges us t ffer t: Prvide cnnectin services t a custmer s electrical installatin and t supply electricity; Prvide cnnectin services t embedded generatrs; and Undergrund r therwise relcate r mdify ur distributin assets In keeping with its bjectives t infrm custmers f their rights and bligatins with regard t access t the distributin system, ur Cnnectin Offers include (where applicable) the: Price fr cnnectin service; Augmentatin wrks (additins, alteratins r relcatin) and; Cnnectin Plicy 3

6 The cntestability and tendering ptins. Shuld the cnnectin applicant require further details f material and labur csts and hw we calculated the avided csts, we shall prvide this infrmatin n request Custmers can be cnfident that ur ffers are based n cmpetitive prices and ur expert knwledge n netwrk design and cnstructin. Hwever, where custmers prefer t benchmark such prices, ur tendering plicy prvides custmers the prcesses fr determining market prices fr the cnnectin and augmentatin services. Cnsistent with the Electricity Distributin Licence and Electricity Industry Guidelines, ur general bligatins are t: Assist and prvide as much infrmatin as pssible prmptly and efficiently when cnnectin enquiries are made; On request, prvide a budget estimate; Respnd t Cnnectin Service requests with an Offer, including price when required and within regulatry timeframes; Detail any service fees/csts t be levied by us as nn-cntestable charges; and Advise when payment is required. Ntwithstanding ur ffer fr the cnnectin services, sme custmers have the fllwing cntestability ptins: The right t request us t undertake a tender prcess; r The custmer s right t undertake its wn tender prcess. 2.4 Custmer bligatins T assist us in prperly cnsidering the cnnectin enquiry r request, the cnnectin applicant must prvide UE with the infrmatin it reasnably requires in rder t prepare its cnnectin service ffer. Examples f such infrmatin are the: Site plan; Cpy f planning permit; Cpy f subdivisin; Rad cnstructin plan; Cmplete lading details; Embedded Generatin details. In additin custmers must: Ensure wrks undertaken by the custmer are in accrdance with Electricity Industry rules and regulatins; Arrange payment f the custmer cntributin and ther fees (e.g. prject fees) as required; Submit requests as early as pssible s that we can meet the custmer s cnnectin deadline; 2.5 Other matters This Cnnectin Plicy shuld be read in cnjunctin with: ur mdel standing ffer fr the prvisin f basic cnnectin services t retail custmers ur mdel standing ffer fr the prvisin f basic Micr-embedded generatin cnnectin services t retail custmers The schedule f AER apprved Fee-based & Quted charges fr Basic & Negtiated cnnectin services Relevant technical standards: please cntact us directly Cnnectin Plicy 4

7 3 Custmers and Services Offered 3.1 Overview Cnnectin services encmpass the services required t physically cnnect premises t ur distributin netwrk. They generally include the design, cnstructin and energisatin f cnnectin assets. In sme circumstances, the new cnnectin r cnnectin alteratin may require an augmentatin f the distributin netwrk t ensure that there is sufficient capacity t service the cnnectin. The new cnnectin r cnnectin alteratin may als require a netwrk extensin beynd the standard service line. We ffer different types f cnnectin services t: cnnect a persn s hme, business r ther premises t the electricity distributin netwrk; augment the netwrk t get mre electricity frm the distributin netwrk than is available at the mment; extend the netwrk t reach a persn s premises; cnnect an embedded generatin system; undergrund r relcate the cnnectin r netwrk asset. The fllwing diagrams depict typical cnnectins fr residential custmers fr verhead and undergrund supply. Figure 1: Overhead cnnectin fr a residential custmer Figure 2. Undergrunded cnnectin fr a residential custmer These cnnectin services are categrised in the table belw: Cnnectin Plicy 5

8 Table 3.1 Custmer Cnnectins Cnnectin Characteristics Residential r Small Business Custmer - New cnnectin (Applicable t bth temprary & permanent supply) Rutine cnnectin: Mst cmmn cnnectin fr a retail custmer where the distributin netwrk asset already exists Basic Slar r Wind turbine cnnectin that is Inverter based generating & strage systems up t 30kW (max 10kW/phase) per premises Cnnectin with > 100 ampere meter Cnnectin with augmentatin r extensin Cnnectin nt accepting Mdel Standing Offer Terms & Cnditins Cnnectin Classificatin Basic Basic/Basic Micr Embedded Generatin Negtiated Negtiated Negtiated Sectin within the Plicy 3.3.1, 4.1 & , 4.1 & , 4.2 & Basic Slar r Wind turbine cnnectin that is Inverter based generating & strage systems up t 30kW (max 10kW/phase) per premises Basic Micr Embedded Generatin 3.3.1, 4.1 & 5.2 Residential r Small Business Custmer - Existing cnnectin Cnnectin with alteratin (i.e. Mving cnnectin pint n premises) Basic 3.3.1, 4.1 & 5.1 Cnnectin with alteratin nt accepting Mdel Standing Offer terms and cnditins Negtiated 3.3.3, 4.2 & Large Custmer Cnnectin Dual & Multiple Occupancy Real Estate Develpment Undergrunding and Relcatin f Assets Embedded generatin These are large business custmers typically, manufacturing centres, shpping centres, hspitals, factries etc. They typically have mre cmplex meter cnnectin May have an embedded netwrk May have an embedded generatr unit with specificatins that exceed thse f micr-eg Smaller apartment cmplexes Greenfield Sites: Real estate develpment means the cmmercial develpment f land including its develpment in ne r mre f the fllwing ways: subdivisin; the cnstructin f cmmercial r industrial premises (r bth); r the cnstructin f multiple new residential premises. Nn- Greenfield Sites: Existing sights that may require augmentatin f the netwrk Cnnectin Assets: These wrks invlve custmer requested undergrunding r relcatin f an existing cnnectin asset at the premise. Netwrk Assets: These wrks relate t the custmer requested undergrunding r relcatin f an existing netwrk asset. Any generatin up t 5MW and des nt satisfy the Basic Micr Embedded Generatin criteria stated in Sectin 6.3 f this plicy, shall be treated as an Embedded Generatr. This cnnectin service is negtiated and hence each applicatin is assessed individually. Negtiated Negtiated Negtiated 3.3.3, 4.2 & , 4.2 & , 6 & 7 Negtiated & 6 Negtiated Negtiated & & 8 Negtiated & 9 Cnnectin Plicy 6

9 Rural Supply Cnnectin Cnnectin Characteristics These cnnectins mainly invlve the extensin f electricity assets alng rad reserves and nt custmers prperties in remte areas. Cnnectin Classificatin Negtiated Sectin within the Plicy & Our ffers fr these cnnectin services are dependent n: the applicant s cnnectin classificatin; the nature f the cnnectin; and whether netwrk capacity is readily available. 3.2 The Cnnectin prcess Befre a retail custmer prceeds t apply fr any f the cnnectins services stated in Sectin 4.1, the first step is t ascertain whether supply is available. T d this the custmer shuld engage a Registered Electrical Cntractr and if required cnsult us. The absence f supply availability means the custmer is likely t need us t extend the netwrk t prvide electricity supply. In additin, depending n supply availability t the custmer s premises and lad requirements, we may need t increase netwrk capacity. If supply t the premises is available in the street, then the custmer s Registered Electrical Cntractr (REC) can nrmally arrange the actual cnnectin service t the premises with us. In mst cases supply is available, therefre the custmer need nly apply fr basic cnnectin services (as set ut in Sectins & Custmer s cntributin t supply In cases where: electricity supply is nt available; r where electricity supply is be available in the street but we need t increase the capacity f the netwrk t meet the custmer needs; r; where there is a netwrk asset that is required t be undergrunded r relcated; the custmer may be required t cntribute twards the upgrade r extensin f the netwrk. Where supply r capacity is nt available, a written request with the custmer s requirements wuld need t be submitted fr us t assess the maximum demand, netwrk requirements and the likely csts t cnnect r upgrade the custmer s cnnectin. It is imprtant fr custmers t prvide all relevant details in respect t their cnnectin requirements well in advance f the anticipated date f the supply requirement. Advice will be prvided n a case by case basis as t likely timing f supply availability. Further details f a Custmer Cntributin and the methdlgy f calculatin can be fund in Sectin 4.7 f this dcument. 3.4 Classificatin f a cnnectins services ffered: Basic, Standard & Negtiated The cnnectin services mentined in table are classified accrding t the service cntracts ffered by us t undertake the wrks Basic Cnnectin Services Basic Cnnectin Services fr a custmer cnnectin t ur distributin netwrk are typically sught by a retail custmer wh is either a residential r business custmer. These services are either: 1 Charges-1.pdf Cnnectin Plicy 7

10 Rutine new custmer cnnectins up t 100 amp; Cnnectin Alteratins (typically mving the meter frm ne pint t anther n the premise; r meter upgrade) Micr-Embedded Generatin cnnectins such as huse-hld slar, strage r wind turbine As per the AER s guidelines, the threshld fr a Basic Cnnectin service is: Standard 100 ampere cnnectin; and N augmentatin required frm existing netwrk assets. Nte: A Micr Embedded Generatr is a sub-classificatin f Embedded Generatr. The key defining features f a Micr Embedded Generatr is that the ttal generatr capacity t the netwrk pint f cnnectin: cannt exceed 30kW (max 10kW per phase), and must use AS4777 cmpliant inverters. Mst residential slar and strage applicatins fall int the Micr Embedded Generatr categry Standard Cnnectin Services At present we d nt have ffer a standard cnnectin service but may d s in the future Negtiated Cnnectin Services Negtiated Cnnectin services are generally mre cmplex cnnectins that: have a greater than 100 ampere cnnectin; have a mre cmplex metering cnnectin (e.g. CT); may include augmentatin either at the cnnectin pint at the premises; may include an extensin f the existing distributin netwrk; may include an augmentatin f the existing distributin netwrk. These services are ffered t a varied grup f custmers and the charges assciated are quted based n the individual requirements f thse cnnectins. We further classify negtiated cnnectin services in t the fllwing types: Small custmer/small business Dual/Multiple Occupancy Large Cnnectins Real Estate Develpments Rural Supply Undergrunding f Assets Embedded Generatin Additinally, any applicatin which des nt meet the Micr Embedded Generatin criteria and is up t 5MW, will be assessed under the negtiated cnnectin services. Cnnectin Plicy 8

11 4 UE Offers and Payment Cnditins 4.1 UE Offers - Basic Cnnectin Service Assuming that the retail custmer has accepted ur basic Mdel Standing Offer and the cnnectin service request is raised by yur retailer, n written ffer will be prvided and the cnnectin service will be expedited with supply turned n within 10 business days, nce we have received the prperly cmpleted cnnectin dcumentatin. If the request is raised directly t us and either: Yu have indicated acceptance f the Mdel Standing Offer n the applicatin frm, then the cnnectin will be expedited and installed with supply turned ff within 20 business days, Or Yu have nt accepted the Mdel Standing Offer and require a written ffer, then there are additinal steps befre the cnnectin can be installed with supply turned ff. This will result in a lnger timeframe. Nte: When applying directly t us, yu will be required t raise a separate request with yur retailer f chice t have the supply turned n. Yu are required t pay us the cnnectin charges fr this service n acceptance f the ffer r by the due date where we issue an invice t yu fr thse cnnectin charges. If the mdel standing ffer has nt been accepted by the retail custmer r the service request des nt meet the criteria f a basic cnnectin service, the service will be classified as a negtiated service and will be subject t ur Negtiating Framewrk. 4.2 UE Offers - Negtiated Cnnectin Service All requests fr negtiated cnnectin services must be made direct t us in writing. Once we have all the infrmatin, we will cmplete the assessment and d ur best t make an ffer fr cnnectin t yu within 65 business days (r within a perid agreed between yu and us). The basis f ur charges will be utlined in ur ffer. Acceptance f the ffer requires yu t sign and return it t us befre the ffer lapses as detailed in the ffer. The ffer will include: Descriptin f the wrk required; Our cntributin (where applicable); Custmer cntributin (where applicable); Cntract demand fr business supply cnnectin; Payment terms; Details f prpsed timings fr the cmpletin f the wrks; Cntestability ptins (where applicable); Terms and Cnditins; and Offer validity perid. Dependent n the type f cnnectin, a Prject/Design fee, is required t be payable upfrnt. The prject fee cvers the expenses directly and reasnably incurred in assessing applicatins fr negtiated cnnectins services and preparing the cnnectin ffer. In these cases we will infrm the applicant f the prject fee n applicatin. Cnnectin Plicy 9

12 4.3 Requesting a cnnectin service Having identified the cnnectin requirements as utlined in sectin 2.3, unless it s a Basic Cnnectin Service, Custmers requesting a Budget Estimate r a frmal Offer shuld cntact us directly with the fllwing details f their prpsal: Site plan Cpy f planning permit Cpy f subdivisin Rad cnstructin plan Cmplete lading details Embedded Generatin details United Energy will prvide a budget estimate fr new cnnectins services at n charge. This estimate will prvide an indicative range f cst based n estimated design and lading assumptins. Where a custmer requires a binding/firm ffer a prject fee is required as an upfrnt cntributin t enable detailed design assessment and preparatin f a fixed price ffer. The fee will act as a depsit twards any final cntributin required fr cnnectins services and will be nn-refundable shuld the ffer nt be accepted and prceed t a final cnnectin. Cnnectin requests shuld be made well in advance f the anticipated date f the cnnectin requirement s that we can meet yur cnnectin deadline. 4.4 Prject Fees Fr all firm ffers a prject fee will be required t accmpany the applicatin request. If apprpriate, custmers shuld cnsider requesting a budget estimate in these cases t assist in determining the likely csts. A Prject Fee is cllected fr all applicatins fr embedded generatin cnnectins greater than 30kW. Prject fees vary depending n the type and size f prject and are available frm the custmer prjects team. 4.5 Budget Estimate A Budget Estimate is an indicative cst f cnnectin nly. It shuld nt be cnsidered as an Offer because prices and cnditins can change. There is n charge fr a budget estimate. Custmers are nt bliged t request a budget estimate first. They can simply submit a written request t us fr an ffer. 4.6 Negtiated Cnnectins: Payment Cnditins Payments fr Service terms The ttal cnnectin charges payable are the sum f the fees and charges fr all services. The belw table is a summary f the type f fees and charges fr each cnnectin service type: Table 4.1 Service fees Fees and charges Basic Cnnectin New Cnnectins requiring augmentatin Rearrangement f Netwrk Assets/ Undergrunding f Cnnectin Assets Real Estate Develpment Embedded Generatin Fee Based Charge Charges fr meter type As required Cnnectin Plicy 10

13 Fees and charges Basic Cnnectin New Cnnectins requiring augmentatin Rearrangement f Netwrk Assets/ Undergrunding f Cnnectin Assets Real Estate Develpment Embedded Generatin Preliminary Enquiry service Prject fee Quted service charge As required Design and cnstructin f cnnectin assets As required As required As required As required Capital cntributin fr netwrk extensin As required As required Capital cntributin fr netwrk augmentatin Minr variatins/ther incidentals Refund Payment (Pineer Scheme) see Sectin 4.8) As required As required As required As required As required As required As required As required As required As required As required As required As required Fr a Basic cnnectin service the payment terms are as per the terms & cnditins in the basic Mdel Standing Offer. Fr a Negtiated cnnectin service where we require a Prject fee and/r a Design fee, the cnnectin applicant will be required t make payment befre the services are prvided. Cnnectin charges and Refund scheme charges are generally payable at the time the cnnectin ffer is accepted and prir t any cnstructin wrk being undertaken. Payments may als be staged if the cnstructin: is nt expected t cmmence fr 3 mnths r mre; r can be lgically segmented int distinct stages f cnstructin. Als refer t sectin fr charges relating t Large Custmer Cnnectins Security Fee depsit In certain circumstances, we may require the payment f a security depsit and may charge the custmer a security fee frm the depsit where we cnsider that there is a significant risk that we may nt earn the estimated incremental revenue frm the cnnectin services we prvide. These include: Real Estate Develpments; and Large Custmers like a hspital, manufacturing plant, ffice building. If a security depsit is applicable, we may require an amunt t be paid up frnt, r we may require a financial security, such as a bank guarantee t be prvided which is the lesser f: the incremental revenue at risk f nn-recvery; and the incremental cst incurred by us in prviding the cnnectin service. Under these circumstances, where the security depsit is prvided as an upfrnt payment, we will rebate the security depsit via annual instalments, with the annual rebate being: any interest earned n the security, calculated at the interest rate (cst f debt) apprved by the AER Cnnectin Plicy 11

14 fr the current revenue determinatin; plus the lwer f: the actual incremental revenue received frm the custmer fr the year; and the security depsit that was paid fr that year. We will nt require a security depsit: fr an amunt that exceeds the value f the incremental revenue which is at risk f nt being recvered; r fr an amunt that exceeds the present value f the incremental csts incurred by us ; 4.7 Custmer Cntributins Custmers may als be required t cntribute t the capital cst f new cnnectin wrks and augmentatin. Our plicy fr custmer cntributins is structured s as t charge custmers in advance. Custmer cntributins (if applicable) are the csts f cnnectin, augmentatin and extensin (if required) which are in excess f the expected revenue assessed ver a perid f 30 years fr residential and 15 years fr business. Nte, nly large cnnectin and Cnnectin Service requests wuld invlve augmentatin csts. A Custmer s Cntributin is calculated using the fllwing frmula incremental cst (IC) less incremental revenue (IR) frmula i.e. Capital Cntributin (CC) = ICCS + ICSN IR(n=X) Where: ICCS = Incremental Cst Custmer Specific ICSN = Incremental Cst Shared Netwrk IR(n=X) = Incremental Revenue A capital cntributin is nly payable where the incremental csts exceed the incremental revenue (i.e. CC > $0). The Incremental Cst Custmer Specific (ICCS) is the incremental csts incurred by UE that are specific t the cnnectin, such as netwrk extensin assets and augmentatin f cnnectin assets at the premises. The ICCS is calculated as the sum f the incremental csts that are specific t the cnnectin, such as: prvisin r augmentatin f any cnnectin assets at the custmer s premises; netwrk extensin csts; administratin csts (including design and certificatin csts); and tender csts (where applicable). Fr the ICCS, UE will: determine the cst in a fair and reasnable manner and ensure that the cst estimate is reflective f the efficient cst f perfrming the service; and calculate the cst n the basis f the least cst, technically acceptable standard necessary fr the cnnectin. The Incremental Cst Shared Netwrk (ICSN) is the netwrk cst incurred by UE as a result f the new r altered cnnectin, but which are nt specific t the cnnectin, such as netwrk augmentatin (ther than an extensin beynd the standard service line). The ICSN is determined n the basis f unit rates, as fllws: ICSN = Unit Rate Demand Estimate Where: Unit Rate = Average cst f augmentatin (ther than an extensin beynd standard service line) per unit f added capacity, expressed as $/kva Demand Estimate = Estimated maximum demand at the cnnectin pint, measured in kva The unit rates used t determine the ICSN are cnsistent with UE apprach in the AER s Electricity Distributin Determinatin fr the regulatry cntrl perid. The applicable unit rates fr residential and business custmers are cntained in Attachment A f this Cnnectin Plicy. The prcess fr determining the estimated maximum demand is set ut in sectin 2.8 f this Cnnectin Plicy. Cnnectin Plicy 12

15 The Incremental Revenue (IR(n=X)) is the present value f the incremental revenue stream expected t be received frm the new r altered cnnectin ver a pre-defined perid. It is determined ver a perid f 30 years fr residential premises. Fr cmmercial and industrial premises, the perid will vary depending n the nature f the business and will be defined in the cnnectin ffer up t a maximum f 15 years. T estimate the incremental revenue, UE will: apply the pre-tax weighted average cst f capital as set ut in the AER Final Distributin Determinatin; and use the price prfile in the Final Distributin Determinatin and apply a flat prfile in real terms thereafter. All capital cntributins will be calculated specifically fr the cnnectin applicant. Fr the specific applicant this calculatin will be: Custmer Cntributin = ( Prject cst (LCTA) + cst f upstream use f netwrk ) ( Net present value f expected distributin use f system (DUOS) revenue + cst f specific wrks initiated by the custmer that is ver and abve the prject cst (LCTA). Least Cst Technically Apprpriate (LCTA) is the term used t describe the type f cnnectin, netwrk extensin r augmentatin which results in the least capital cst t meet the custmer s real and immediate need, and which satisfies ur technical specificatins and safety requirements. The prject cst f custmer initiated wrks is the LCTA cst f the supply assets between the pint f supply r supplies in the case f subdivisins t the tie-in pint t an existing distributin netwrk. The reinfrcement csts f upstream use f netwrk assets is the estimated cst f the incremental demand n the upstream netwrk up t and including the sub-transmissin netwrk frm the pint f cnnectin. The cst is calculated n a $/kva basis. The present value calculatin f expected DUOS revenue is based n an assumed life f 30 years fr residential cnnectin and 15 years fr business cnnectin. The revenue earned will be based n the average cnsumptin f a custmer in the tariff categry. Where a particular prject is clearly expected t have an ecnmic life f less than 15 r 30 years, then that shrter life wuld be used. Where a custmer requests wrk that is ver and abve the LCTA design, the incremental cst f such wrks has t be fully paid by the custmer. The custmer is respnsible fr all cnnectin assets dwnstream f the pint f supply. The custmer is the wner f all cnnectin assets dwnstream f the pint f supply. The Custmer Cntributin is charged fr cnnecting t the netwrk nly when it is expected the custmer will cntribute less in expected DUOS revenue than the incremental cst f prviding supply. 4.8 Refund f Cnnectins charges fr extensin assets (pineer scheme) Where an riginal retail custmer funds a netwrk extensin and/r ther dedicated cnnectin assets, we will establish a Refund scheme (pineer scheme) allwing fr a refund t the pineer custmer a prprtinal share f the riginal cntributin twards the shared assets based n number f future custmer cnnectins. The shared assets wuld include nly assets shared by bth pineer and future custmers and paid fr fully by the pineer custmer. Generally assets lcated n private prperty wuld nt meet this criterin unless these assets are used t extend further int r nt a neighbur s prperty. Pineer schemes are applicable t single residential custmers generally (but nt exclusively) lcated in rural gegraphical areas. A Refund Scheme has a life f 7 years frm the time f cmmissining the augmented r extended distributin netwrk. In ther wrds, there shall be n refunds in relatin t a Refund Scheme after 7 years. The cntributin twards the Refund scheme will be determined based n the expected usage f the netwrk extensin and / r dedicated cnnectin assets by the subsequent custmer and the remaining life f the netwrk extensin and / r dedicated cnnectin assets. Calculatin f the Refund scheme amunts will be in accrdance with the requirements f the AER Cnnectin Charge Guidelines in frce at the time. We will apply the fllwing principles t Refund schemes: A Refund scheme will apply fr seven 7 years after the riginal netwrk extensin and/r ther dedicated cnnectin asset was cmmissined/cnnected t ur distributin netwrk. Cnnectin Plicy 13

16 A refund under a Refund scheme fr a netwrk extensin will nly be paid where the calculated refund threshld is met. Fr 2016, the refund threshld is $1, (real 2016). 2 Where a refund is payable fr the riginal cntributin, the refund will be paid t the current wner f the riginal cnnecting premises. Where the netwrk extensin and / r dedicated cnnectin asset was built by a third party, the riginal cst f the extensin and / r dedicated cnnectin asset will be estimated by us as the amunt it wuld have charged t build the netwrk extensin and / r dedicated cnnectin asset. Cntributins will be calculated t the least cst design ptin nly. Cntributins made abve this amunt will be brne by the pineer custmer and nt eligible fr refund. 2 The threshld will be increased annually fr the mvement in the September all capital cities CPI. Cnnectin Plicy 14

17 5 Basic Cnnectin Service: Retail Custmers 5.1 General As stated in Sectin 4.2, the Basic Cnnectin Services fr a custmer cnnectin t ur distributin netwrk are typically sught by a retail custmer wh is either a residential r business custmer. These services are either: Rutine new custmer cnnectins Cnnectin Alteratins (typically mving the meter frm ne pint t anther n the premise r a meter upgrade) Micr-Embedded Generatin cnnectins such huse-hld slar r wind turbine and can be fr permanent & temprary cnnectins that require: There t be supply t the premises and nly a single pint f cnnectin There is n n-sale f electricity t ther custmers within the premises (i.e. embedded netwrk) Fr an verhead pwer line, there is a maximum f 20 metres f extensin f pwer lines lcated within the premises bundary and there is less than 45 metres f extensin f pwer lines frm the distributin ple used t service the premises Fr an undergrund cnnectin there is an existing pit adjacent t the premises bundary and n upgrades are required t the pit Fr rural based prperties supply availability shuld be checked as infrastructure is nt always available, which culd require a negtiated cnnectin regardless f size and cmplexity. Our Basic cnnectin service Mdel Standing Offer sets ut the terms and cnditins a cnnectin applicant accepts befre we can prceed with the Basic cnnectin service. Our Basic Mdel Standing Offer will be apprved by the AER 3 and can be fund n ur website. If the cnnectin applicant fr a basic cnnectin services is nt satisfied with the cnditins set ut in the Basic cnnectin Mdel Standing Offer, then the applicant has the right t negtiate the terms and cnditins f the cnnectin ffer. This cnnectin applicatin will then be subject t ur Negtiating Framewrk and will be classified as a Negtiated Cnnectin service. As a result ur Basic Micr-EG Mdel Standing Offer will nt apply. Fr the prcess and charges relating t a negtiated cnnectin, please see Chapter Micr-Embedded Generatin A micr embedded generatr cnnectin service is classified as a basic cnnectin service. Micr embedded generatr custmers are typically thse wh wish t install slar panels, strage and small wind turbines n their premises. In rder t be cnsidered fr the Basic Micr Embedded Generatin cnnectin, the fllwing cnditins must be satisfied: The retail custmer has an existing cnnectin r in the case f a new cnnectin, has sught a basic cnnectin service; The ttal generatin capacity at pint f cnnectin must nt exceed 30kW (max 10kW per phase); The generatr technlgy t the netwrk cnnectin pint must be inverter based; The inverter must be AS4777 cmpliant and registered n the Clean Energy Cuncil Apprved Inverter list; 4 and There is minimal r n netwrk augmentatin required; 3 AER will apprval n the 1 st January Cnnectin Plicy 15

18 If yu are a retail custmer and d nt satisfy the abve cnditins, yu can: Reduce yur prpsed generatr size t be 30kW r less (max 10kW per phase); and/r Install an inverter which is AS4777 cmpliant (please see the Clean Energy Cuncil website fr a list f Apprved Inverters) Our Basic Cnnectin service with Micr-Embedded Generatin Mdel Standing Offer sets ut the terms and cnditins a cnnectin applicant accepts befre we can prceed with the Basic Micr-Embedded Generatin cnnectin service. Our Basic Mdel Standing Offer will be apprved by the AER and can be fund n ur website. If the custmer requires bth a new cnnectin r a cnnectin alteratin and a micr-embedded generatr cnnectin, the terms and cnditins cntained in bth Mdel Standing Offers apply. If the cnnectin applicatin fr micr-embedded generatin cnnectin services des nt satisfy the cnditins set ut in the Mdel Standing Offer, then the applicant has the right t negtiate the terms and cnditins f the cnnectin ffer. This cnnectin applicatin will then be subject t ur Negtiating Framewrk and will be classified as a Negtiated Cnnectin service. As a result ur Basic Micr-EG Mdel Standing Offer will nt apply. Fr the prcess and charges relating t a negtiated cnnectin, please see Chapter Fees & Charges Cnnectin Fees Where yu retailer requests an expedited basic cnnectin, yur retailer will be charged the relevant cnnectin fee. Where the custmer r an agent requests a service an upfrnt cnnectin fee is charged. The cnnectin fee is designed t cver the csts f: prviding the cnnectin between the distributin system and the custmer s premises meter installatin (if we are the Respnsible Persn) energisatin (nly where the cnnectin request is made by the retailer) administratin assciated with prcessing the custmer request, registering the new custmer & cnnectin details int ur infrmatin system. If a retail custmer requires a cnnectin alteratin, then the fee assciated will cver a service vehicle visit which is time based. Please see the schedule f charges fr the times based charge. The micr embedded generatin cnnectin applicant will incur a metering fee. This fee will be dependent n what services are required, whether: The existing metering can be recnfigured remtely. Hence incurring a remte re-cnfiguratin fee; r A new bi-directinal meter is required t be installed. Hence a service truck visit that includes a physical meter installatin. The stipulated Basic cnnectin and Micr-embedded generatin cnnectin fees are apprved annually by the AER in ur Annual Tariff structure Statements and can be fund n ur website. 5 Nte: Supply f any metering is in additin t these charges as described under heading Metering Services AMI Metering (<160MWh). See ur Summary f Schedule f Charges - Alternative Cntrl Services Fee Based New Cnnectins Where we are the respnsible persn pdf Cnnectin Plicy 16

19 Table 5.1: Services prvided under a Basic Cnnectin Categry Service Descriptin New Cnnectins (<100 amps) Single phase single element Single Phase Tw Element (ff-peak) Three phase Direct Cnnected There is an verhead cnnectin available. Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n the premises at the end f an verhead pwer line that des nt require mre than 20 metres f extensin lcated within the premises bundary f the premises and des nt require mre than 45 metres f extensin frm the distributin ple which will be used t service the premises. Includes installatin f AMI metering where we are respnsible fr supplying the AMI meter. Single phase single element Single Phase Tw Element (ff-peak) Three phase Direct Cnnected Existing Pit/Pillar that has capacity and is therwise suitable fr the new/altered cnnectin. Upgrades t pits/pillars d nt frm part f the Basic Cnnectin Service. Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n an existing service pit r pillar adjacent t the premises bundary. Includes installatin f AMI metering where we are respnsible fr supplying the AMI meter. Temprary supply in urban and lw bushfire areas (excl. inspectin). This is fr an verhead service. Standard Single Phase Multi-Phase t 100amp Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n the premises at the end f an verhead pwer line attached t a temprary structure prvided by yu (i.e. yu install a temprary ple and meter bx) and des nt require mre than 20 metres f extensin lcated within the premises bundary f the premises and des nt require mre than 45 metres f extensin frm the distributin ple which will be used t service the premises. Includes installatin f AMI metering where we are respnsible fr supplying the AMI meter. Temprary supply in urban and lw bushfire areas where existing cnnectin pint available (excluding inspectin) Standard Single Phase Multi-Phase t 100amp Existing Pit/Pillar that has existing rm fr and is therwise suitable fr the new/altered cnnectin. Upgrades t pits/pillars d nt frm part f the Basic Cnnectin Service. Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n an existing service pit r pillar adjacent t the premises bundary. Includes installatin f AMI metering where we are respnsible fr supplying the AMI meter. Cnnectin Plicy 17

20 Categry Service Descriptin Additins & Alteratins Replace existing service Single phase single element Single Phase Tw Element (ff-peak) Three phase Direct Cnnected Overhead service r Existing pit/pillar that has existing rm fr and is therwise suitable fr the new/altered cnnectin. Upgrades t pits/pillars d nt frm part f the Basic Cnnectin Service. Relcate existing service Single phase single element Single Phase Tw Element (ffpeak) Three phase Direct Cnnected This fr an verhead service. Upgrade t a multi-phase 100amp service: This is fr an verhead service. Upgrade t a multi- 100amp service: Existing pit/pillar that has existing rm fr and is therwise suitable fr the new/altered cnnectin. Upgrades t pits/pillars d nt frm part f the Basic Cnnectin Service. Cnversin f an verhead service t an undergrund service. (where a pit already exists) Establish an individual cnnectin pint between the premises and ur distributin netwrk, as a replacement f an existing verhead r undergrund service like with like r a reductin in the number f phases (1 phase with 1 phase r multi with multi-phase) with ur prir agreement required. The cnnectin pint will be n the premises at the end f an existing verhead pwer line frm a distributin ple r n an existing service pit r pillar adjacent t the premises bundary. Establish an individual cnnectin pint between the premises and ur distributin netwrk, as a result f yur request fr relcatin f an existing verhead service t accmmdate building extensins, verandas, carprts etc. The cnnectin pint will be n the premises at the end f an existing verhead pwer line that des nt require mre than 20 metres f extensin lcated within the premises bundary f the premises and des nt require mre than 45 metres f extensin frm the distributin ple which will be used t service the premises. Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n the premises at the end f an existing verhead pwer line frm a distributin ple. The service is dependent upn the requested number f phases being available. Includes installatin f AMI metering when we are respnsible fr supplying the meter. Establish an individual cnnectin pint between the premises and ur distributin netwrk. The lcatin f the cnnectin pint will be as determined under the cntract. The cnnectin pint will be n an existing service pit r pillar adjacent t the premises bundary. The service is dependent upn the requested number f phases being available in the existing service pit r pillar. Includes installatin f AMI metering when we are respnsible fr supplying the meter. Establish an individual cnnectin pint between the premises and ur distributin netwrk, as a result f yur request fr replacement f an existing verhead service with an undergrund service. The cnnectin pint will be n an existing service pit r pillar adjacent t the premises bundary. The existing pit/pillar must have rm fr and be therwise suitable fr the new/altered cnnectin. Upgrades t pits/pillars d nt frm part f the Basic Cnnectin Service Cnnectin Plicy 18

21 5.3.2 Supplementary charges In cnjunctin with cnnectin fees, the cnnectin applicant may be subject t charges relating t: Wasted truck visits where we are unable t cmplete the cnnectin due t yur installatin nt being ready r cmpliant r due t inaccurate infrmatin being prvided t us; After hurs appintment; Additinal cntract charges; r Late payments fee Refund Scheme (Pineer) Aside frm the cnnectin fee mentined abve, the cnnectin applicant may be subject t a charge that relates t a distributin netwrk extensin cmpleted under the Pineer scheme. Details f the Pineer scheme can be fund in Sectin Custmer Cntributins Fr Basic Cnnectin Services, the cnnectin applicant des nt pay a capital cntributin due t the nature f the cnnectin. Hwever if an extensin r augmentatin f the netwrk distributin asset is required, then this cnnectin service will be classified as a negtiated cnnectin. Further details can be fund in Sectins Payment f Cnnectin Charges Payment fr cnnectin services requested will depend n the fllwing: If the retailer has accepted the cnnectin service ffer n yur behalf and yur cnnectin satisfies the cnditins stated in sectin 5.1 & 5.2, then it is an expedited cnnectin request and: we will bill the retailer and yur retailer may recver these charges frm yu in accrdance with yur cntractual arrangement with that retailer; r If the cnnectin service ffer accepted has been sent t us directly by the cnnectin applicant ther than the retailer: These charges are t be paid in full at the time the cnnectin ffer is accepted, and prir t any wrk being undertaken. 5.5 Dispute reslutin Where a dispute arises between us and the custmer then if requested by either party, bth parties will negtiate in gd faith t settle that dispute frm the time a party first requests such negtiatins take place. This is stipulated within the relevant ffer cntracts terms and cnditins. Cnnectin Plicy 19

22 6 Negtiated Cnnectin Service: Retail Custmers These services are typically fr large r cmplex cnnectins with greater than 100 Ampere cnnectin and may als require augmentatin f the existing netwrk asset. Hwever they can als invlve small t medium size cnnectins where ur netwrk needs t be altered, extended r upgraded in rder t enable a cnnectin r t accmmdate the extra lad r generatin. 6.1 Service Classificatin: We further classify negtiated cnnectin services in t the fllwing types: Rutine Retail Custmer cnnectin (Residential & Small business) These cnnectins are fundamentally a Basic cnnectin service but fr the fact that the: Cnnectin applicant either des nt agree with the terms & cnditins f the Basic Cnnectin Mdel Standing Offer; r The cnnectin request des nt meet the eligibility cnditins f a basic cnnectin service and therefre is a negtiated cnnectin Large Retail Custmer cnnectins These are large business custmers typically, manufacturing centres, shpping centres, hspitals, factries etc Dual/Multiple Occupancy These cnnectins have tw r mre dwellings n a single site. Examples f these are a set f units r twnhuses n lt f land r an apartment blck Rural Supply These cnnectins mainly invlve the extensin f electricity assets alng rad reserves and n t custmer s prperties We wuld encurage rural custmers t cllectively make a cnnectin request due t the large cst f the cnstructin wrk invlved. This will further enable the csts t be fairly spread acrss multiple custmers Undergrunding f Cnnectin Assets (Elective) This service refers t where a custmer requests the undergrunding f an existing verhead service relating t a single premise i.e. Ple t Pit. This service is usually adpted fr aesthetic reasns r where the need t cut trees t prvide an verhead service is nt acceptable t the custmer. 6.2 Fees & Charges All firm ffers will be charged a prject/design fee t cver expenses directly and reasnably incurred by us in assessing the applicatin and making the cnnectin ffer. Unless charged as an upfrnt prject/design fee, this fee will be included with ur ffer. We will prvide the requested cnnectin service under a negtiated cntract, which will cnsist f terms and cnditins including the quted price fr the installatin f the cnnectin. Meter prvisin services fees including current transfrmers where we are respnsible fr metering services will als be charged. 6.3 Custmer Cntributin A capital cntributin may be applicable t the negtiated service cnnectin if: an extensin t the distributin netwrk is necessary in rder t prvide a cnnectin service; r augmentatin f the distributin netwrk; r Cnnectin Plicy 20

23 if augmentatin f premises cnnectin assets at the retail custmer s cnnectin pint is necessary in rder t prvide a cnnectin service. please see sectin 4.7 fr further details Small, Large & Rural Custmers All capital cntributins will be calculated in accrdance with the frmula, which is als set ut in Sectin 4.7 f this Cnnectin Plicy Dual/Multi Occupancy Our custmer cntributin charge fr dual and multiple ccupancy develpments is based n an average cst f prviding a 3 phase undergrund ple t pit service cnnectin up t a maximum f 50 metres and a maximum capacity f 170 Amps. Additinal cable fr multiple dwellings (after 50 metres) will be an additinal per metre charge. The custmer cntributin depends n the number f dwellings serviced by the single ple t pit service. The number f dwellings that can be cnnected is limited by the capacity f the 3 phase 170 Amps service. Where a service cnnectin f greater than 3 phase 170 Amps is required, the custmer cntributin will be calculated n a prject by prject basis Undergrunding f cnnectin assets (elective) Custmer cntributins principles d nt apply fr this service as n augmentatin r extensin f the Distributins netwrk is required 6.4 Payment f Cnnectin Charges The ttal cnnectin charges payable by the cnnectin applicant is the sum f the applicable fees and charges set ut in Table 4.1 at ur discretin, the payment terms may be subject t negtiatin between the parties. In the absence f mutually acceptable terms, the cnnectin cst must be paid as a lump sum at the time the cnnectin ffer is accepted, and prir t any cnstructin wrk being undertaken Refund Schemes and security fee may apply in accrdance with sectin 4.8. Cnnectin Plicy 21

24 7 Negtiated Cnnectins Service: Real Estate Develpers We classify real estate develpment as the cmmercial develpment by subdivisin f green-field land invlving: the cnstructin f multiple new residential lts; r the cnstructin f cmmercial r industrial lts (r bth). These may als include the establishment f radways, public lighting, public spaces etc. Real estate develpment f an existing (nn-greenfield) site will be assessed in accrdance with Sectin Custmer Cntributins Real Estate Develpers generally pay the relevant charges alng with a custmer cntributin charge The custmer cntributin charge fr real estate develpment prjects are determined in accrdance with the custmer cntributin principles described in Sectin 4.7. If the develper is expected t cntribute tward residential develpment, all design and cnstructin wrks including cnnectin t ur netwrk are cntestable. Fr the purpses f calculating the custmer cntributin, the least cst technically acceptable (LCTA) design fr urban residential subdivisin shall be as described belw Residential develpment The LCTA design fr the lw vltage distributin netwrk fr a residential subdivisin is undergrund reticulatin. The LCTA design fr the high vltage distributin netwrk fr a residential subdivisin is an verhead reticulatin and the distributin substatins will generally be ple munted. As estimates/qutes are generally based n a ttal undergrund design, 10% f the ttal undergrund reticulatin cst (excluding Public Lighting) is cnsidered t be the cst difference between LCTA and the actual fully undergrund reticulatin design, fr the purpses f calculating the develper s custmer s capital cntributin. Only when lcal Municipal Cuncils allw an verhead netwrk t be installed in new develpments will we prvide an ffer based n verhead netwrk design Cmmercial/Industrial Develpment The LCTA design fr the high vltage and lw vltage distributin netwrk fr a cmmercial/industrial subdivisin is an verhead reticulatin and the distributin substatins will generally be ple munted. 7.2 Public Lighting The lcal cuncils are required t decide n the street lighting levels, type f street lighting luminaries, and future wnership f the lighting scheme prpsed by the Develpers. Shuld a cuncil require us t undertake the design and recmmendatin, we will prvide the services fr a fee. Prvided the lcal cuncil apprves the lighting scheme and accepts t pay fr the lighting services, Develpers applying fr electricity distributin infrastructure are required t pay the full cst assciated with the prvisin f public lighting. Prvisin f new public lighting services is fully cntestable. Befre we cnnect a public lighting system t its distributin netwrk, the lcal cuncil must and accept t pay fr the lighting services. 7.3 Fees & Charges The cnnectin charges fr real estate develpments include: Negtiatin Applicatin Fee; Design and cnstructin f cnnectin assets; Cnnectin Plicy 22