Improved electricial distribution comes at a cost for NSW residents


Breakdown of amounts claimed: A table in the application shows
the total is made up of $34.1 million in capital costs for network
planning, $74.6 million in capital costs for average and individual
feeder reliability, $23.3 million in operating costs for network
planning and $23.6 million in operating costs for average and
individual feeder reliability.

And, an extra $15.6 million to meet new service standards:
EnergyAustralia said it was also seeking a specific pass-through of the
$15.6 million of capital and operating costs arising from compliance
with the guaranteed customer service standards (GCSS) licence

New licence conditions welcomed: In the executive summary of its
application, EnergyAustralia said it welcomed the new licence
conditions introduced by the NSW Minister for Energy and Utilities on
EnergyAustralia and the other NSW distribution network service
providers under Schedule 2 of the Electricity Supply Act 1995 . The conditions aimed to ensure a more reliable supply of electricity to the residents of NSW.

Extensive works required: The improvements in security and
reliability of supply reflected in the new licence conditions would
require extensive works, which were incremental to those contemplated
in IPART’s distribution pricing determination for 2004/05 to 2008/09.

Reference: Submission by EnergyAustralia to Independent Pricing and
Regulatory Tribunal (IPART) on pass-through application. 7 December,
Address: GPO Box 4009, Sydney. NSW 2001. Phone: (02) 8900 6978. IPART
address: Level 2, 44 Market Street, Sydney. NSW. 2000. PO Box Q290, QVB
Post Office, NSW. 1230. Phone: (02) 9290 8400. Fax: (02) 9290 2061.

Erisk Net, 12/12/2005

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