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Edge of Grid development - Denmark / Walpole

Release Date: 20 February 2007

Supporting development at the edge of the grid - Denmark / Walpole

Developers planning to open up land in the Denmark, Walpole region will be able to process applications when Western Power advises them of the results of work to make the funding arrangements for new electricity infrastructure more equitable.

The new policy underpinning the new capital contributions approach should be finalised by the end of March after a period of industry and public consultation.

Western Power Managing Director Mr Doug Aberle said the aim of the new policy is to provide a more equitable method of paying for expensive electrical infrastructure required to support development at the edge of the electricity grid.

"Western Power has the staged network development plans. The issue is how to fund the new work under the new regulatory regime Western Power now operates under."

He said the focus is on spreading the cost of new infrastructure across all future, new users when the increased electricity demand requires acceleration of Western Power's development plans for an area.

"It is a complex process to develop a policy which enables developers to open up new land and which meets the investment rules stipulated by the regulator," he said.

The new approach involves creating a 'head works' charge.

"Traditionally a developer wanting power connected to a new land release at the edge of the electricity grid paid for a significant proportion of the electrical infrastructure needed to supply the new loads. At the edge of the grid, the up-front capital contributions required often fell to one developer. This is often prohibitive, particularly for a small developer," he said.

"Western Power was keen to devise a more innovative system and has been working with the Energy Minister, the Office of Energy, the Economic Regulation Authority and industry representatives to change the codes and regulations governing Western Power to allow for the development of the head works charge."

A Western Power representative will attend a meeting at the Denmark Shire on Thursday to discuss the issue.

Contact us

If you have any questions regarding this media release please email us: media@westernpower.com.au