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Distribution Low Voltage Connection Headworks Scheme (DLVCHS)

What is the Distribution Low Voltage Connection Headworks Scheme?

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).

Distribution Low Voltage Connection Headworks Scheme (DLVCHS) Calculation

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 +
((RL-216)x$224)
Tranche 3 transformer connection rate 630 kVA All loads $112/kVA = $189,504 +
((RL-630)x$112)
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 +
((RL-216)x$272)

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

Distribution Low Voltage Connection Headworks Scheme Cost Versus Load

All connections and upgrades that meet all the following criteria will charged according to the DLVCHS:

  • New or upgrading low voltage connections
  • Customer within 25km of a Western Power zone substation
  • Connections that pass the economic test*

*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.

Examples

Diagram of pole to pillar applicaiton

There are no changes to the connection cost for converting an existing overhead supply to an underground pillar connection for standard electricity supply to a house. For standard rates to be applicable, the pillar is to be installed at Western Power preferred location is at the junction of the front property and the common property boundaries (as shown in the drawing and as per option A or B).

  • Option A: If the existing Western Power electricity network is on the same side of the road then the fixed cost to provide a standard electricity connection through a pillar (green dome) is $3400.
  • Option B: If the existing Western Power electricity network is on the other side of the road then the fixed cost to provide a standard electricity connection through a pillar (green dome) is $4900.

Prior to1 July, 2019 - For residential developments up to 4 dwellings, the up-front customer contribution for Western Power to provide a standard electricity connection through a pillar (green dome) is $3,400 (if the existing electricity network is on the same side of the road) or $4,900 (if the existing electricity network is on the other side of the road).

From 1 July 2019 - For residential developments up to 4 dwellings, the up-front customer contribution for Western Power to provide standard electricity connection through a pillar will be based on DLVCHS. The customer contribution may also be eligible for an offset based on the forecast electricity consumption.

Example

Diagram of residential connection application

Prior to 1 July 2019 and with reference to the drawing below, if the customer submits a request for a standard electricity connection for 3 lot survey strata subdivision then the customer will incur a cost of $4,900 for the proposed electricity connection as the existing electricity network is on the other side of the road.


After 1 July 2019, for the same request the customer will incur a cost of $7,440 for the electricity connection. The cost is based on standard 5kVA (load/dwelling) x $496 (DLVCHS rate) i.e. 15 x $496 = $7,440. The customer contribution may further be subsidised with revenue offset.

For multi-residential development applications, the customer is normally charged DLVCHS rates for the requested load without any revenue offset applied to the up-front customer contribution.

From 1 July 2019 for residential developments, the customer contribution will be based on DLVCHS. However, the customer may be eligible for an offset based on the forecast electricity consumption.

Example

Diagram of multi-residential application

Prior to 1 July 2019
If the developer submits a request for an electricity connection for multi-residential development of 20 units, then the up-front customer contribution will be:

20 units x 3kVA (DADMD load allocation for each apartment) x $496 (DLVCHS rate) = $29,760.

The customer contribution is not eligible for revenue offset.


After 1 July 2019
If the developer submits the same request then the up-front customer contribution will be the same as before 1 July 2019, $29,760. However, the up-front customer contribution may be eligible for a discount (offset) based on the forecast electricity consumption.

If the development load consists of commercial load for offices, cafeteria & retails shops etc, then to be eligible for the offset, the customer must provide sufficient information of the end user so Western Power can confidently forecast the energy consumption of the development.

For further details regarding the DLVCHS and application of revenue off-sets please refer to the Capital Contributions Policy on the Economic Regulation Authority Western Australia website.
Also, note that there are no changes to the 13.9% capital contributions tax, if applicable, it will be included in addition to the overall project cost.

Prior to 1 July 2019, for commercial subdivisions, the up-front customer contribution for Western Power to provide electricity connection to meet minimum requirements of subdivision (i.e 200kVA/hectare) is based on the full forecast cost of asset installation.

From 1 July 2019, for the same request, the up-front customer contribution for Western Power to provide electricity connection to meet minimum requirements (i.e. 200kVA/hectare) of the subdivision will be based on the DLVCHS. The customer may be eligible for an offset based on the forecast electricity consumption.

Example

Diagram of commercial subdivision applications

Prior to 1 July 2019, if the customer submits a request to provide minimum electricity connection for the proposed subdivision of 1-hectare lot into 2 freehold lots of 0.5-hectare area each. For the proposed connections, the customer Bob will incur a full forecast cost of Western Power asset installation and the cost may vary depending on Western Power network augmentation requirements.

After 1 July 2019, for the same request the customer will incur a cost based on DLVCHS rates:

2 x 100kVA (load allocation for each lot) x $496 (DLVCHS rates) = $99,200.

If the customer requests for any additional load, then DLVCHS will still be applicable. The up-front customer contribution may be subsidised with revenue offset. To be eligible for revenue offset, the customer must provide sufficient information with which Western Power can confidently forecast the energy consumption of the connection.

For further details regarding the DLVCHS and application of revenue off-sets please refer to the Capital Contributions Policy, available on the Economic Regulation Authority Western Australia website.
Also, note that there are no changes to the 13.9% capital contributions tax, if applicable, it will be included in addition to the up-front customer contribution.

Diagram of commercial upgrade application

There haven't been changes to the connection charging policy for commercial supply upgrade applications, the application will be treated the same as before 1 July 2019. The connection upgrade charges will be based on either DLVCHS or variable forecast cost for the asset installation. The up-front customer contribution may be subsidised with eligible for revenue offset.

To be eligible for revenue offset, the customer must provide sufficient information with which Western Power can confidently forecast energy consumption.

For further details regarding the DLVCHS and application of revenue off-sets please refer to the Capital Contributions Policy, available on the Economic Regulation Authority Western Australia website.
Also, note that there are no changes to the 13.9% capital contributions tax, if applicable, it will be included in addition to the up-front customer contribution.