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Distribution System Extension Policy (DSEP)

Power and Water's capital contribution requirements for electricity supply are governed by the Electricity Networks (Third Party Access) Act and Power and Water's Distribution System Extension Policy. Overall these cover 4 main areas:

• Contestable Customers;
• Subdivisions and Amalgamations;
• Load Increases and conversions to three phase; and
• Extensions to unserviced areas.

Contestable Customers

Contestable Customers are those with an estimated annual consumption exceeding the amounts in the table.

Date	Actual or Estimated Annual Consumption at a Single Site
1 April 2000	4 GWh
1 October 2000	3 GWh
1 April 2001	2 GWh
1 April 2002	750 MWh
1 April 2010	160 MWh
1 April 2010	All customers

Capital contributions required of contestable customers are governed by the Electricity Networks (Third Party Access) Act and Code. Capital contributions are required where a supply extension would not otherwise be commercially viable.

Additionally a contribution may be required for prudential purposes to minimise Power and Water's financial risks associated with the investment in network assets. This contribution may be in the form of a financial contribution; non-cash asset contribution; service charge pre-payment; minimum service charge or quantity for an agreed period; and/or financial guarantee.

Subdivisions and Amalgamations

Developers are typically required by the terms of their Development Permit to provide services to every Lot, or power supply to the development, to the satisfaction of Power and Water. Developers typically engage consultants and contractors to undertake the works, other than the final connection to the existing network. Power and Water provides an initial audit of the works free of charge. Power and Water charges for the final connection works and these charges must be paid prior to connection of the new assets.

Load Increases and Conversions to Three Phase

Load Increases

For load increases to an existing lot, the following applies:

1. A capacity charge of $50 per kVA for increases in demand above the existing agreed demand, or 50kVA, whichever is the greater;
2. $5000 for each additional substation installed specifically to provide the increase in demand;
3. the full cost of high voltage line on private property ; and
4. the demand will be limited by a circuit breaker in accordance with Installation Rule 5.56.

Where a three phase supply is not required under Power and Water's Service and Installation Rules, the cost of converting to three phase is borne by the customer. As three phase supply is not available at every location, and other fees may apply, Power and Water should be contacted before making any commitments.

Extensions to Unserviced Areas

For extensions to unserviced areas, the capital contribution required is calculated as a proportion of the cost as follows:

1. 75% of the cost of assets utilised by more than one customer. This amount is the sum of capital contributions and Overriding Statutory Charges (OSCs). OSCs are placed on Lots serviced by an extension of supply, where the property owner elects initially not to take supply;
2. 100% of the cost of extensions on private property; and
3. Where lines cross private property, the property owner must grant an easement to Power and Water at no cost, and ensure that access to the new line is maintained at all times.