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AA4 Contribution Policy changes

If you need a new electricity connection or upgrade, we can ease the cost for you to connect.

From 1 July 2019, all residential and commercial applications for new connections or connection upgrades may be eligible to receive a reduced cost on their connection via one of the following ways:

  • Revenue offset policy: The connection cost will be offset against the expected power consumption for the property (up to a 15-year period where it can be proven the site will be occupied and electricity will be consumed from the network).
  • Distribution Low Voltage Connection Headworks Scheme (DLVCHS): The cost of network infrastructure required for new connections will be shared by customers based on the requested capacity (not whether the current network will be expanded as a result of the application).

Revenue offset

Revenue offset makes it more affordable for you to connect to the network by looking at your expected future electricity consumption for the property over a period of time, and offsetting this cost against the initial connection costs.

Revenue offset only applies to properties which:

  • Have never been connected to the network
  • Require a higher capacity electrical connection

(you will need to prove the site will be occupied and electricity will be consumed from the network).

Previously, only business customers were able to receive the revenue offset, but now residential customers, if eligible, can also benefit from a reduced up-front cost on their new connection or upgrade.

Doing this brings our pricing in line with other states. The cost is covered over time as the property consumes electricity from the network.

FAQs

The  revenue offset applies to:

  • new residential and commercial connections (excludes gifted assets)
  • upgrades to existing residential and commercial connections (includes additional electricity drawn from overhead to underground conversion capacity upgrades, such as a small subdivision)
  • new or upgrades to mixed-use residential/commercial connections.
  • Undergrounding of network assets or connections
  • Streetlights
  • Existing network asset relocations or changes (not small subdivisions)
  • Supply Extension Scheme
  • Unmetered supply
  • Subdivisions
  • Work in excess of standard requirements
  • Temporary connections

The offset is based on the additional revenue Western Power expects to receive over time from the proposed connection. The excluded works are different because they won’t generate new revenue.

When preparing the quote for a connection project we look at:

  • The total cost of the works required
  • The potential offset value and the amount which can be offset

Only the minimum works required to connect will receive the offset. Any further works required to connect will be charged accordingly.

What’s included in your quote:

  • Operating and maintenance costs of the connection
  • The costs to meet technical requirements
  • The reduced upfront costs for applicable works.

If you receive a quote for $0 it’s not a mistake.  Based on our calculations, the future consumption at the property is expected to cover the costs of your connection.

No, the revenue offset you receive on your connection works won’t change your electricity bill.

When calculating your expected electricity demand, we look at similar sites connected to the network along with any information you provide in your application. We then set an appropriate load for your property and base the offset amount on this.

If you want a higher load than we recommend, you will only be eligible to receive the revenue offset on the load we have set.

When you submit your application, we will review your eligibility across both policies independently. You are eligible to receive both if you meet the criteria for each policy.

Revenue offset only applies if your supply from the network increases.

Yes, you will need to cover the additional costs if you want the connection in a location that is not the Western Power preferred location.

The revenue offset is applied to the minimum works required to connect. Any additional works required are not eligible for the revenue offset and are charged accordingly.

There is no change to the recovery of tax on capital contributions.

When we look at the load requirement of your property, we need evidence so we can predict the demand and consumption of the site. This includes what industry you are in or activity to be carried out on site, and how long the site is to be occupied for.

We may also ask you for information such as a detailed load breakdown, hours of operation, site plans, building approvals or records of equipment purchased. This helps us to correctly estimate the expected load, which ensures you benefit as much as possible from the revenue offset.

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