Australian Capital Territory
Utilities (Electricity Network Capital Contributions Code) Approval 2007
Disallowable instrument DI2007–204
made under the  
Utilities Act 2000, s 58 (Approved codes)

1	Name of instrument
This instrument is the Utilities (Electricity Network Capital Contributions Code) Approval 2007.
2	Commencement 
This instrument commences on the day after notification.
3	Approval of code
The Commission approves the Electricity Network Capital Contributions Code set out in the attachment.
4	Public access to documents
Copies of the Electricity Network Capital Contributions Code are available for inspection by members of the public between 9:00 am and 5:00 pm, Monday to Friday, at the Commission’s offices at Level 2, 12 Moore Street, Civic ACT, and on the Commission’s website (www.icrc.act.gov.au). Copies of these documents can be made at the Commission’s offices. Electronic copies are available on request. No charge will apply.

Paul Baxter
Senior Commissioner
for the Independent Competition and Regulatory Commission
14 August 2007

ATTACHMENT

 ICRC
independent competition and regulatory commission

Electricity Network Capital
Contribution Code
August 2007

TABLE OF CONTENTS
	Page
PART 1	APPLICATION, PURPOSE AND EFFECT OF THIS CODE	1
1.1	Application	1
1.2	Purpose	1
1.3	Ownership of Network Assets	1
PART 2	DICTIONARY	1
2.1	Dictionary Attached	1
PART 3	CALCULATION OF CAPITAL CONTRIBUTION CHARGES	1
3.1	General principle	1
3.2	Installation of infrastructure for electricity connection to a basic standard	1
3.3	Customers requiring infrastructure of a higher standard	2
3.4	Rural Customers	2
3.5	Uneconomic loads	3
3.6	Substations	3
3.6.1	Customers supplied or to be supplied at a low voltage rate	3
3.6.2	Customers supplied or to be supplied at a high voltage rate	4
3.7	Redevelopment of land	4
PART 3.8	Removals and relocations	4
Part 4	DICTIONARY	5

PART 1		 APPLICATION, PURPOSE AND EFFECT OF THIS CODE
1.1	Application
This Code applies to Electricity Distributors.
1.2 Purpose
The purpose of this Code is to outline the principles and procedures by which an Electricity Distributor may impose a Capital Contribution Charge payable by a Customer in relation to the Costs incurred by the Electricity Distributor in developing or augmenting its Electricity Network.
1.3	Ownership of Network Assets

The payment of a Capital Contribution Charge does not confer on the person paying that charge any ownership in, or other legal or equitable right in respect of, any asset to which that charge may relate.

PART 2 DICTIONARY

2.1 Dictionary Attached

The dictionary at the end of this Capital Contribution Code is part of this Code.

PART 3 CALCULATION OF CAPITAL CONTRIBUTION CHARGES

3.1 General principle
An Electricity Distributor may charge, and a Customer must pay, a Capital Contribution Charge for the development or augmentation of its Electricity Network undertaken at the request of that Customer.
The amount of the applicable Capital Contribution Charge may not exceed the amount calculated in accordance with the principles outlined in this clause.

3.2 Installation of infrastructure for electricity connection to a basic standard
An Electricity Distributor will install on land being developed the basic standard infrastructure applicable to that land at no charge to the Customer.
“Basic standard infrastructure” comprises either:

(a)	Overhead assets to:
i.	extend the distribution system from the existing boundary of the Electricity Network to or through the land being developed; and
ii.	provide a service connection up to a maximum of 22 metres of overhead cable from the distribution system to the Premises or other fixture on the land being developed; or
(b)	underground assets to:
i.	extend the distribution system from the existing boundary of the Electricity Network to or through the land being developed; and
ii.	provide a service connection up to a maximum of 8 metres of underground cable from the distribution system to the Premises or other fixture on the land being developed ; or
(c)	a combination of such overhead and underground assets,
being assets of a capacity and reliability rating assessed as reasonable by the Electricity Distributor.
The Electricity Distributor will advise a Customer on request by the Customer whether the basic standard infrastructure in respect of any particular parcel of land comprises overhead or underground assets or a combination of such assets, and what capacity and reliability the Electricity Distributor has assessed as reasonable for that infrastructure.
The Electricity Distributor will provide to a Customer on request by the Customer information about the relevant standards and procedures used by the Electricity Distributor to determine the capacity and reliability of the basic standard infrastructure.
Whether overhead assets, underground assets or a combination of such assets are the basic standard infrastructure for any particular parcel of land, and the assessment of the reasonable capacity of that infrastructure, are matters within the discretion of the Electricity Distributor unless the Electricity Distributor is specifically required by law to construct infrastructure assets of a particular type or capacity on that parcel of land.

3.3 Customers requiring infrastructure of a higher standard
If a Customer, whether at its own discretion or in accordance with any applicable lawful requirement, requires the construction of assets other than the basic standard infrastructure applicable to the relevant parcel of land, the Capital Contribution Charge payable by the Customer may be an amount no more than the additional Costs incurred by the Electricity Distributor in providing that different infrastructure.

3.4 Rural Customers
The Capital Contribution Charge for a Customer in a rural area may be calculated by subtracting from the Costs incurred in connecting the Customer to the Electricity Network an amount equivalent to the average Costs of connecting a residential Customer in the Canberra urban area to the Electricity Network.
3.5 Uneconomic loads
An Electricity Distributor may determine that a Customer seeking connection to the Electricity Network will be likely to have a load which is uneconomic.
An Electricity Distributor may only make such a determination where it reasonably considers that, over the life of the additional Network Assets required to connect the Customer, the network revenue from the load likely to arise from that connection, relative to the Costs of making connection services available as requested by the Customer, together with ongoing operating and maintenance costs, would render it unprofitable to provide that connection.
If a Customer has a load which is determined by an Electricity Distributor to be uneconomic, the Capital Contribution Charge payable by the Customer may be an amount up to the full cost of the work.
PART 3.6 Substations
This clause applies to the installation of a substation on a Customer’s Premises where either:
(a)	an Electricity Distributor considers that such installation is necessary for the supply of electricity to those Premises in accordance with a request by that Customer; or
(b)	the Customer requests the installation of a substation on its Premises which the Electricity Distributor considers to be unnecessary for the supply of electricity to those Premises.
The Customer must provide, at no charge, space within its Premises adequate to allow installation of the substation.
The ownership of any substation and ancillary equipment installed within a Customer’s Premises remains with the Electricity Distributor notwithstanding that such may be attached to the Customer’s Premises.
The Electricity Distributor will operate, maintain and repair the substation equipment at no charge to the Customer and the Customer shall provide the Electricity Distributor with access to its Premises for that purpose.

3.6.1 Customers supplied or to be supplied at a low voltage rate
If a load is considered to be economic, an Electricity Distributor will install substation equipment considered by it to be necessary for the supply of electricity to the Customer’s Premises at no charge to the Customer. 
If, in accordance with clause 3.5, a load is considered to be uneconomic, but an Electricity Distributor nevertheless considers that installation of the substation equipment is necessary for the supply of electricity to the Customer’s Premises, the Capital Contribution Charge payable by the Customer may be calculated in accordance with the provisions set out above in relation to Uneconomic Loads.
If an Electricity Distributor considers that installation of the substation equipment is not necessary for the supply of electricity to the Premises but the Customer nevertheless requests such installation, the Capital Contribution Charge payable by the Customer  may be an amount equal to the full Costs that would not otherwise be borne by the Electricity Distributor.

3.6.2 Customers supplied or to be supplied at a high voltage rate

Where electricity is required by a Customer to be supplied at a high voltage rate, the Capital Contribution Charge payable by the Customer for installation of the substation equipment may be calculated by subtracting from the Costs of installing the substation equipment the Costs of installing any metering equipment which would otherwise have been provided by the Electricity Distributor as part of the basic standard infrastructure.

 3.7 Redevelopment of land

If re-development of a parcel of land already connected to the Electricity Network necessitates re-development or augmentation of electricity distribution or service connection infrastructure in order to vary the capacity or connection, the Capital Contributions Charge may be equal to the full Costs of that re-development or augmentation plus a reasonable profit margin.

 3.8 Removals and relocations

If a Customer requests an Electricity Distributor to remove or relocate Network Assets, the Electricity Distributor may charge, and the Customer must pay, the full Costs plus a reasonable profit margin incurred in removing or relocating such assets.
This clause applies regardless of:
(a)	the age or utilisation of the asset; or
(b)	any previous contribution towards the cost of installing those assets.

No payment, credit or other allowance will be provided for assets removed or relocated.

PART 4 DICTIONARY

Act means the Utilities Act 2000.

Capital Contribution Charge means the amount payable in accordance with this Code towards the Costs of making utility services available to parcels of land not already connected to an Electricity Network or varying the capacity of a connection to an Electricity Network.

Costs means the amount incurred by an Electricity Distributor in making electricity available to parcels of land not already connected to an Electricity Network or varying the capacity of a connection to an Electricity Network and all necessary ancillary work to adequately protect and operate the resultant Electricity Network, including design, labour, materials, plant, transport, overhead and administration costs but not including any profit margin.

Customer  means any Person who acquires services from an Electricity Distributor in relation to the Electricity Network, and includes, but is not limited to:

i.	a developer of residential, commercial or industrial land;
ii.	a residential, commercial or industrial customer; and
iii.	an Electricity Supplier.

Electricity Distributor has the same meaning as in the Act.

Electricity Network has the same meaning as in the Act.

Electricity Supplier has the same meaning as in the Act.

Network Asset means any infrastructure or other equipment forming part of an 
Electricity Network.

Person includes a natural person, a firm, an unincorporated association or a body corporate.

Premises has the same meaning as in the Act.