The Distribution Low Voltage Connection Headworks Scheme (DLVCHS) allows for the cost of infrastructure required for new customer connections to be shared by all customers using the installed network. The DLVCHS provides a charge on the basis of requested capacity (kVA) rather than on whether the current network will have to be expanded as a consequence of the submitted application.
How does the Scheme work?
The DLVCHS cost replaces the cost of augmentation for customer connections and upgrades. The DLVCHS cost is based on a set of per kVA rates reflecting the average cost of supply per unit of load (kVA).
How is the DLVCHS cost calculated?
The DLVCHS cost is calculated using a series of kVA rates (or tranches) applied in a block rate structure as shown in Table 1 below. The block rate structure is shown in graphical form in Figure 1.
Table 1: DLVCHS rates as of 29 October 2012
|Category||Load From||Load To||Tranche kVA rate||Formula for calculated cost of works|
|Tranche 1 transformer connection rate||0 kVA||216 kVA||$448/kVA||= $0 + (RL x $448)|
|Tranche 2 transformer connection rate||216 kVA||630 kVA||$224/kVA||= $96,768 +
|Tranche 3 transformer connection rate||630 kVA||All loads||$112/kVA||= $189,504 +
|Low use street feed connection rate||0 kVA||216 kVA||$496/kVA||= $0 + (RL x $496)|
|Med use street feed connection rate||216 kVA||All loads||$272/kVA||= $107,136 +
Note: Due to the cost of additional infrastructure, the street feed rates will be applied to all customers connected via Low Voltage Street Feed cable.
*The DLVCHS rates should not be used as an estimate as revenue offset and full cost items may apply
Figure 1 – Total DLVCHS cost versus load
Who is eligible for the DLVCHS
All connections and upgrades that meet all the following criteria will charged according to the DLVCHS:
*To be eligible for the DLVCHS, all applicants must pass an economic test. An applicant will pass the economic test where their proportion of the cost of works required is not more than the DLVCHS cost for that connection/upgrade plus $120,000. Confirmation of an economic test pass can only be given via a new connection or upgrade submission to Western Power.