Electricity Networks Access Code Amendments (No. 1) 2007 (WA)

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29 June 2007 GOVERNMENT GAZETTE, WA 3213
EN404*

ELECTRICITY INDUSTRY ACT 2004

ELECTRICITY NETWORKS ACCESS CODE AMENDMENTS (No 1) 2007

I, Francis Logan, Minister for Energy for the State of Western Australia, hereby amend the Electricity

Networks Access Code 2004 established under section 104(1) of the Electricity Industry Act 2004.

Dated at Perth this 26th day of June 2007.

FRANCIS LOGAN.

Made by the Minister
1. Citation

These amendments may be cited as the Electricity Networks Access Code Amendments (No 1) 2007.

2. Commencement

These amendments come into operation on the date on which they are published in the Gazette.

application.

3. The Electricity Networks Access Code amended

These amendments are to the Electricity Networks Access Code 2004*.

[*Published in Gazette .30 November 2004, P. 5517-5700

For amendments to 29 June 2007 see Gazettes—

No 207 of 8 November 2005;
No 59 of 31 March 2006;
No 152 of 1 September 2006; and
No 206 of 8 December 2006.]

4. Section 1.3 amended Section 1.3 is amended—

(a) by deleting the definitions of "access application" and "applicant"; and

(b) by inserting the following definitions in the appropriate places—

"access application" means—

(a)

an application lodged with a service provider under an access arrangement to establish or modify an access contract; and

(b) a prior application and a transitioned application,

and includes any additional information provided by the applicant in relation to the

3214 GOVERNMENT GAZETTE, WA 29 June 2007

"Appendix 8 augmentation" means an augmentation to the SWIN of a type specified in
clause A8.2 of Appendix 8.

"applicant" means—

(a)

a person (who may be a user) who has lodged an access application under the access arrangement for a covered network to establish or modify an access contract, and includes a prospective applicant; and

(b) a prior applicant.

"previous regime" means the previous regulations and sections 90 and 91 and Schedules 5 and 6 of the Electricity Transmission and Distribution Systems (Access) Act 1994 as in effect immediately before 1 July 2007.

"previous regulations" means the Electricity Transmission Regulations 1996, the Electricity Distribution Regulations 1997 and the Electricity Referee and Dispute Resolution Regulations 1997, as in effect immediately before 1 July 2007.
"prior applicant" has the meaning given to it in clause A9. 1.
"prior application" has the meaning given to it in clause A9. 1.
"referee" has the meaning given to it in the Electricity Referee and Dispute Resolution
Regulations 1997, as in effect immediately before 1 July 2007.
"SWIN" means the covered network that is covered under section 3.1.
"SWIN access arrangement" means the access arrangement approved for the SWIN by the
Authority's Further Final Decision dated 26 April 2007.

"transitioned application" has the meaning given to it in clause A9. 1.

and

(c) in the definition of "access dispute" by inserting after paragraph (c) the following—

(ca) anything connected with or arising out of a capital contribution under section

5.17A; and

(cb) a matter heard under section 15.7; and
(cc) anything connected with or arising out of Appendix 8; and

(cd) anything connected with or arising out of Appendix 9; and

5. Section 2.9 amended

Section 2.9 is deleted and the following is inserted-

2.9 If a service provider will need to undertake a required augmentation in order to provide a

covered service sought in an access application then—

(a) if the service provider is Electricity Networks Corporation and requires a capital contribution under section 5.17A in respect of an Appendix 8 augmentation, then-

(i)  if the applicant provides the capital contribution for the required augmentation, or the applicant and the service provider reach agreement on the terms on which the applicant will provide the capital contribution—the service provider must undertake and fund the required augmentation; and

(ii)  otherwise the service provider is not required to undertake or fund the required augmentation;

and

(b) if section 2.9(a) does not apply, then-

(i)  if all of the forecast new facilities investment for the required augmentation meets the new facilities investment test—the service provider must undertake and fund the required augmentation; and

(ii)  if only part or none of the forecast new facilities investment for the required augmentation meets the new facilities investment test—then-

(A) if the applicant provides the capital contribution for the required augmentation determined under the capital contributions policy, or the applicant and the service provider reach agreement on the terms on which the applicant will provide the capital contribution—the service provider must undertake and fund the required augmentation; and

(B) otherwise the service provider is not required to undertake or fund the

required augmentation.

6. Section 2.9A deleted
Section 2.9A is deleted.
7. Section 5.14 amended

Section 5.14 is amended by deleting "5.14,A" and inserting instead-

"" 5.17A

29 June 2007 GOVERNMENT GAZETTE, WA 3215
8. Section 5.14A deleted
Section 5.14A is deleted.

9. Sections 5.17A and 5.17B inserted

After section 5.17, the following heading and sections are inserted—

Capital contributions for certain SWIN augmentations

5.17A Despite section 5.14, Electricity Networks Corporation may require a capital

contribution for an Appendix 8 augmentation of up to the maximum amount
determined under Appendix 8 for the relevant type of Appendix 8 augmentation.

5.17B From 1 July 2007 until the first revisions commencement date for the SWIN access arrangement, section 5.17A prevails over any inconsistent provision of the SWIN access arrangement.

10. Section 14.28 inserted

After section 14.27, the following heading and section are inserted—

Detailed provisions regarding capital contributions for certain SWIN augmentations

14.28 Appendix 8 has effect.

11. Sections 15.5 to 15.8 inserted

After section 15.4, the following headings and sections are inserted—

Preservation of SWIN actions

15.5 If an action could have been commenced before the referee under the previous regime immediately before 1 July 2007 seeking a remedy in respect of a thing done or not done before 1 July 2007 in connection with or arising out of a prior application, an action may be commenced before the arbitrator seeking the remedy in respect of the thing.
15.6 Section 15.5 does not extend any period of limitation or waive any other requirement under the previous regime for commencing an action.
15.7 If a person commences an action before the arbitrator seeking a remedy under section

15.5, the arbitrator—

(a) may hear the matter under Chapter 10; and
(b) may make any determination in respect of the matter which is consistent with-

(i) the Code objective; and

(ii) the Act and this Code generally.

Transitional arrangements for the SWIN queue

15.8 Appendix 9 has effect.

12. Appendix 4 amended

Appendix 4 is amended by deleting "5.14A" in both places where it appears in the introductory paragraphs of the Appendix, and inserting instead-

5.17A ".

13. Appendices 8 and 9 inserted

After Appendix 7, the following Appendix 8 and Appendix 9 are inserted—

Appendix 8—Detailed provisions regarding capital

contributions for certain SWIN augmentations

Definitions

A8.1 In this Appendix 8, unless the contrary intention is apparent—

"average cost" for a scheme means the total scheme cost divided by the total number
of connection points covered by the scheme.
"commercial premises" means premises on which electricity is consumed
predominantly for commercial use.
"member" in respect of a scheme means a person who has initiated or joined a scheme
under the SES.
"pillar" means a ground mounted apparatus forming part of the SWIN located on or
near a property boundary and to which the consumer mains of a premises are connected
in order to obtain electricity.
"pole to pillar connection" means the provision to a residential premises of an

underground 415 V or 240 V supply via a pillar connection.

"premises" has the meaning given to it in the Electricity Act 1945 (WA).

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"primary production premises" means premises owned or occupied by a consumer who is assessed as carrying on a primary production business under the Income Tax Assessment Act 1997.

"residential premises" means premises on which electricity is consumed
predominantly for domestic use.
"scheme" means an arrangement with respect to a particular SES augmentation or a
particular interconnected series of SES augmentations under the SES.
"SES" and "Supply Extension Scheme" means the approach to SWIN augmentation
under clauses A8.8 to A8.15.
"SES augmentation" means a required augmentation which is an extension of the
SWIN to connect—

(a) a primary production premises; or

(b) one residential premises on a lot (excluding a residential premises in respect of which a pole to pillar connection is required under a written law or statutory instrument).

"standard dwelling" means a residential premises that is located on a lot that is zoned residential, or otherwise permitted to be used for residential purposes under any town planning scheme applying to that lot (excluding lots zoned special rural residential); and has

(a)

a load of no more than 63 amperes single-phase 240 volt or 32 amperes three- phased 415 volt; and

(b) sufficient SWIN capacity available to it, to supply the applicable load.

"subdivision" means a subdivision of land which requires or has received approval under section 135 of the Planning and Development Act 2005 (WA), the Strata Titles Act 1985 (WA) or an equivalent written law.

"substantial consumer" means an applicant who the service provider forecasts to consume in excess of 10% of the total annual electricity consumption in respect of a premises.
"temporary connection" means a non-permanent connection to the SWIN that is undertaken to provide supply to activities such as, but not limited to, outdoor functions (such as fairs and concerts), non-standard builder supplies (such as city or commercial developments) and connections to premises during renovations.

"total cost" for a scheme means the sum of the forecast new facilities investment for the SES augmentation for which the scheme was initiated plus the forecast new facilities investment for each SES augmentation for an applicant which subsequently joins the scheme.

"unmetered connection" means a type of connection point described in clause 3.9(2)

of the Electricity Metering Code 2005 established under section 39(2)(a) of the Act.

Scope of Appendix 8 augmentations to SWIN

A8.2 This Appendix 8 applies only in respect of the following augmentations to the SWIN

("Appendix 8 augmentations")

(a) a subdivision under clause A8.4; and

(b) a pole to pillar connection under clauses A8.5 to A8.6; and

(d) a Supply Extension Scheme under clauses A8.8 to A8.15; and (c) the development of buildings under clause A8.7; and
(e) augmentations in excess of standard requirements under clause A8.16; and
(f) specified temporary connections under clause A8.17 and A8.18; and

(g)

streetlights, unmetered connections, relocations, undergrounding and some temporary connections under clause A8.19.

General principles

A8.3 A capital contribution for an Appendix 8 augmentation (other than a flat fee under clauses A8.5 and A8.17) must not exceed the forecast new facilities investment that would be forecast to be incurred for the augmentation by a service provider efficiently minimising costs.

Subdivisions

A8.4 The maximum capital contribution for an applicant who—

(a) undertakes a subdivision; and

(b)

seeks an augmentation (other by a pole to pillar connection) of the distribution system to service the subdivision,

is the forecast new facilities investment for any required augmentation which is or will be

located within the boundaries of, or adjacent to, the land being subdivided.

Pole to pillar connections

A8.5 The maximum capital contribution for a pole to pillar connection is a flat fee determined under clause A8.6.

29 June 2007 GOVERNMENT GAZETTE, WA 3217

A8.6 Electricity Networks Corporation may from time to time set a flat fee for pole to pillar connections, which fee must be calculated to the standard of a reasonable and prudent person and in such a way that, over a reasonable forecasting period, the forecast revenue from applying the flat fee to all pole to pillar connections installed during the period ("forecast connections") is forecast not to exceed—

(a)

the sum of forecast new facilities investment which would be incurred for the forecast connections by a service provider efficiently minimising costs;

minus

(b) the anticipated incremental revenue for the forecast connections.

Development of buildings

A8.7 Where an applicant seeks a connection to the SWIN in respect of—

(a) multiple residential premises, including multi-storey buildings, excluding-

(i)  residential premises in respect of which a pole to pillar connection is required under a written law or statutory instrument; and

(ii) connections which are SES augmentations;

or

(b)

commercial premises in relation to which the applicant will not become a substantial consumer; or

(c)

mixed residential premises and commercial premises in relation to which the applicant will not become a substantial consumer,

the maximum capital contribution by the applicant is the forecast new facilities

investment for the required augmentation.

The Supply Extension Scheme

Initiating or joining an SES

A8.8 An applicant, or group of applicants, for whom the required augmentation is an SES augmentation, may apply to Electricity Networks Corporation to either join an existing scheme or initiate a new scheme.
A8.9 If the SES augmentation sought by the applicants in clause A8.8 is to be connected to network assets which are covered by an existing scheme, then a new scheme must be initiated if—

(a)

the forecast new facilities investment for the SES augmentation exceeds the average cost for the existing scheme; or

(b) the existing scheme commenced more than 10 years ago.

Contribution for applicant initiating a scheme

A8.10 If a single applicant initiates a scheme, the maximum capital contribution for the applicant is the forecast new facilities investment for the SES augmentation.

A8.11 If a group of applicants initiate a scheme, the maximum capital contribution for each

applicant within the group is the average cost for the scheme. Contribution for applicant joining an existing scheme

A8.12 If an applicant joins an existing scheme, the maximum capital contribution for the applicant is the new average cost for the scheme, calculated by adding the forecast new facilities investment for the required augmentation for the applicant to the previous total cost and calculating a new average cost taking into account the new applicant's connection point.

A8.13 In this circumstance the capital contribution to be made by the new applicant will

comprise a component in payment of the forecast new facilities investment for the new
connection, and a rebate component in accordance with clause A8.14 and A8.15.
Rebate to continuing scheme members

A8.14 If an applicant joining a scheme causes a decrease in the average cost for the scheme, Electricity Networks Corporation must, after it receives the applicant's capital contribution to join the scheme and the connection is completed, make a payment to the existing scheme members (excluding the applicant) of an amount equal to the difference between the average cost immediately before the applicant joined the scheme and the new average cost applying after the applicant joined.

Rebates will not be paid after 10 years

A8.15 To avoid doubt, the effect of clause A8.9(b) is that a rebate will only be paid under clause A8.14 within the first 10 years after a scheme commences.

Augmentations in excess of standard requirements

A8.16 If

(a)

an applicant seeks to have network assets constructed ("requested assets") which Electricity Networks Corporation, in accordance with good electricity industry practice, considers are in addition to what is required to meet standard supply arrangements; and

(b)

the forecast new facilities investment for the requested assets ("requested investment") exceeds the forecast new facilities investment which would be required if the connection was constructed in accordance with standard supply arrangements ("standard investment"),

3218 GOVERNMENT GAZETTE, WA 29 June 2007

then—

(c)

the maximum capital contribution in respect of the standard investment is to be determined under the provisions of this Code and the access arrangement which apply to the type of connection in question; and

(d)

in addition, the maximum capital contribution may include the difference between the requested investment and the standard investment.

Temporary connections

A8.17 If a flat fee is determined under clause A8.18 for a class of temporary connection, then the maximum capital contribution for the class of temporary connection is the flat fee.

A8.18 Electricity Networks Corporation may from time to time set a flat fee for temporary connections, which fee must be calculated to the standard of a reasonable and prudent person and in such a way that, over a reasonable forecasting period, the forecast revenue from applying the flat fee to all temporary connections installed during the period ("forecast connections") is forecast not to exceed the sum of forecast new facilities investments which would be incurred for the forecast connections by a service provider efficiently minimising costs.

Streetlights, unmetered connections, relocations, undergrounding and some temporary connections

A8.19 The maximum capital contribution for an applicant who seeks—

(a) a modified or new streetlight, including provision of a new streetlight asset;

(b) an unmetered connection;

(c) to have an existing network asset relocated;

(d) to have an existing overhead network asset or connection undergrounded;

(e)

a temporary connection if Electricity Networks Corporation has not set a fee for that class of temporary connection under clauseA8. 18,

is the forecast new facilities investment for the required augmentation.

Appendix 9—Transitional provisions for the SWIN queue

Definitions

A9.1 In this Appendix 9

"application and queuing policy" means the application and queuing policy in the

SWIN access arrangement.

"connection application" means an access application classified as such under the
application and queuing policy.
"electricity transfer application" means an access application classified as such
under the application and queuing policy.
"material amendment" means, subject to clause A9. 10, an amendment to an access

application which is either or both of—

(a)

a "material amendment" as that expression is used in the application and queuing policy; or

(b)

an amendment which would result in the amended transitioned application being "materially different" from the prior application as that expression is used in clause 24.12(b) of the application and queuing policy.

"prior applicant" means the person who lodged a prior application and is deemed to

have lodged the corresponding transitioned application.
"prior application" means an "access application" (as defined in the previous
regulations) and includes any additional information provided under the previous


regime before 1 July 2007 by the prior applicant in relation to that access application.
"transitioned application" means a prior application having effect as an access
application under clause A9.3 and, if applicable, includes each of the deemed connection

application and electricity transfer application under clause A9.5.

Application of this Appendix

A9.2 This Appendix 9 applies only in respect of the SWIN, and applies despite the changes made to the previous regulations on 1 July 2007 and the repeal of sections 90 and 91 and Schedules 5 and 6 of the Electricity Transmission and Distribution Systems (Access) Act 1994.

Transitioning of prior applications

A9.3 A prior application has effect for the purposes of this Code and the SWIN access arrangement as though it was an access application lodged under this Code and the SWIN access arrangement.
A9.4 A transitioned application is deemed to have been lodged at the time the corresponding

prior application was lodged.

A9.5 To the extent necessary to enable the transitioned application to comply with the application and queuing policy, it is to be regarded as two separate access applications, being a connection application and an electricity transfer application.

29 June 2007 GOVERNMENT GAZETTE, WA 3219

New queuing etc rules apply to transitioned applications

A9.6 From 1 July 2007, a transitioned application is to be dealt with in accordance with this Code and the SWIN access arrangement, despite having been lodged and previously dealt with in accordance with the previous regime.

Updating a transitioned application

A9.7 By no later than 14 July 2007 Electricity Networks Corporation must give notice to each prior applicant—

(a) advising that the prior applicant's prior application has been transitioned under clause A9.3; and
(b) if applicable, advising that the prior application will have effect as a deemed connection application and electricity transfer application under clause A9.5. and
(c) for each covered service sought by the prior application, Electricity Networks Corporation's proposal as a reasonable and prudent person for-

(i)  the reference service to be substituted for the covered service sought by the prior application;

(ii) the reference tariff to apply for the reference service;

(iii)  the terms and conditions to apply to the reference service (including its proposal, if applicable, for completing any blanks in the standard access contract);

and

(d) advising that the prior applicant is not obliged to accept Electricity Networks Corporation's proposals under clause A9.7(c); and
(e) specifying (to the extent reasonably practicable in accordance with good electricity industry practice) all additional information required from the applicant to cause the transitioned application to comply with this Code and the SWIN access arrangement and to enable Electricity Networks Corporation to process the transitioned application and, if applicable, make an access offer.

A9.8 Within 30 business days after receipt of a notice referred to in clause A9.7, the prior applicant must give Electricity Networks Corporation a notice setting out, for each service sought by the prior application, either—

(a)

the prior applicant's acceptance of Electricity Networks Corporation's proposals under clause A9.7(c); or

(b) the prior applicant's counter-proposal in respect of those matters.

A9.9 A notice from a prior applicant under clause A9.8—

(a)

is an amendment to the relevant transitioned application under clause 3.13(a) of the application and queuing policy; and

(b) if given under clause A9.8(a) is not a material amendment; and

(c) if given under clause A9.8(b), can (subject to clause A9.10), but does not necessarily, amount to a proposal for a material amendment,

A9.10 A response under clause A9.8(b) is not a material amendment if the response would result in a transitioned application which is either (or both on—

(a) not materially different from the prior application; or

(b)

not materially different from what the transitioned application would have been if the prior applicant had accepted Electricity Networks Corporation's proposals under clause A9.7(c);

Assessing whether prior applicant's election might amount to a material amendment

A9.11 Before giving a notice under clause A9.8(b), a prior applicant may submit a draft of the notice to Electricity Networks Corporation seeking Electricity Networks Corporation's view as a reasonable and prudent person on whether the notice might amount to a material amendment if submitted in that form.

A9.12 Electricity Networks Corporation must respond to a request under clause A9.11 within 5 business days with its view as a reasonable and prudent person as to whether the draft notice would, or would not, amount to a material amendment.

Transitioned applications temporarily preserved

A9.13 Despite anything to the contrary in the SWIN access arrangement, a transitioned application must not be rejected, and cannot have its priority amended or be deemed to have been withdrawn, unless—

(a) Electricity Networks Corporation has given notice under clause A9.7; and
(b) the prior applicant has given a notice under clause A9.8 or the time for doing so has expired,

and thereafter a transitioned application may only be rejected, have its priority amended or be deemed to have been withdrawn in accordance with the application and queuing policy.

Time periods restart after exchange of notices

A9.14 For the purposes only of determining a time period under the application and queuing policy, a transitioned application is deemed to have been lodged on the date the prior applicant gives a notice under clause A9.8 or the time for doing so expires.

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