All Regulation FAQS
Access arrangement
An access arrangement sets out the terms and conditions, including prices, for our direct customers such as generators, major users and retailers. Retailers (like Synergy) pass network charges through to households and businesses.
We submit a five-year proposal to the Economic Regulation Authority (ERA) under the Electricity Networks Access Code 2004. The ERA consults publicly, reviews our proposal and decides the revenue we can recover and the service standards we must meet.
AA6 is our sixth five-year plan, covering 1 July 2027 to 30 June 2032. We’re developing the proposal now, with community, customer and stakeholder input informing the services and investments we put forward.
Across 2025–2026 we’re inviting feedback on priorities, trade-offs and our draft plan, including through Community Working Groups and targeted sessions with residential, business, industry and local government customers. What we hear will shape the Initial Proposal and areas where we do deeper engagement.
It’s designed to serve the long-term interests of Western Australians by ensuring our essential services are delivered safely, reliably and efficiently, at a fair cost, with transparent decisions and opportunities to have a say through the determination process.
To avoid overlapping with the 2025 State Election caretaker period and to align with potential Access Code changes, a one-year deferral was approved in January 2025. The AA6 Initial Proposal is due 1 February 2027; the period still begins 1 July 2027, with 2027–28 tariffs carried over from 2026–27 and incentive mechanisms paused while the ERA completes its determination.
New access arrangement policies
The final policies will be published as part of the Economic Regulation Authority’s Final Decision, expected 31 March 2028. We’ll work closely with industry to prepare for the new policies, including updating our materials and customer information online.
The new policies take effect on 1 July 2028, when Western Power’s new access arrangement (AA6) commences. The access arrangement runs until 2032, when the policies will be reviewed again.
You’ll find more detail on the Economic Regulatory Authority’s page about Western Power’s Access Arrangement 6 and the ERA’s process here: Framework and approach AA6 (2027-2032) - Economic Regulation Authority Western Australia
Yes. After we submit our access arrangement and policies, the Economic Regulation Authority will publish them as part of its own consultation. You’ll be able to give feedback directly to the Economic Regulation Authority when it releases the access arrangement and policies for consultation.
We value feedback from customers and industry. We’ll prepare an insights report for each consultation draft and provide it to the Economic Regulatory Authority alongside the draft policies when we submit on 1 February 2027.
Email AA6@westernpower.com.au if you’d like guidance on how to make a submission.
Fixed Capital Charge
The capital charge is a fixed $100,000/MW charge that will be payable by applicants for new and expanded transmission connections of 10 MW or more on the South West Interconnected System. It replaces the existing shared assets capital contribution under Western Power’s contributions policy, which is calculated on a variable, project-by-project basis and can be highly uncertain.
The charge is payable by any person entering into or modifying an access agreement where the contracted capacity at one or more transmission connection points is 10 MW or more. This captures new and expanded generation, storage and load connections to the transmission network.
The amount was informed by a Registration of Interest process conducted by Western Power and Energy Policy WA in 2023, where 66% of 143 respondents indicated a willingness to contribute $100,000/MW or more, and 86% indicated a willingness to contribute $80,000/MW or more.
Additionally, a public consultation process on the capital charge was held by Energy Policy WA between December 2025 and January 2026. General support of the capital charge was indicated through that consultation process.
The amount payable depends on the transmission connection points’ Declared Sent Out Capacity or Contracted Maximum Demand.
The capital charge for a 10 MW facility would be $1 million (i.e., 10 MW multiplied by $100,000). For larger connections, the charge scales proportionally. For example, a 100 MW project would pay $10 million, and a 500 MW project would pay $50 million.
The charge is indexed annually by CPI from 1 July 2027.
The $100,000/MW capital charge will commence on 1 October 2026 and will apply to new and expanded transmission connections greater than 10 MW.
Transmission connections with contracted capacity below 10 MW are not subject to the capital charge. They remain subject to Western Power's existing contributions policy under the Electricity Networks Access Code 2004, which provides for contributions to be calculated on a project-specific basis. This means smaller connections continue to pay contributions based on the actual costs they trigger, while larger connections (10 MWs or more) pay the fixed capital charge.
This policy design reflects that smaller connections have a smaller impact on the shared transmission network and rarely trigger significant upgrades to shared assets.
Yes. The $100,000 per MW Fixed Capital Charge is real in 2025 dollars and will be indexed annually by the Perth CPI.
The current regulatory framework does not support the scale and pace of transmission expansion that is required to facilitate the renewable energy transition. The costs of these new transmission projects are typically more than any one customer could support. The current capital contribution framework would require customers to either:
Progress individually
If a connection requires a new transmission build or substantial network upgrades, the shared connection costs could be significant, generating a ‘first mover’ penalty, where the first connecting customer would bear most of the shared connection costs and later connecting customers bear less costs.
Attempting to mitigate this by initially pursuing a more limited capacity network build would create ongoing cost inefficiencies, as a series of small upgrades will be costlier than a single upgrade done at scale. Under the current capital contributions approach, calculating costs individually makes it more difficult to ensure there are efficiencies between builds, and that augmentation costs are optimised.
Progress collectively
Progressing several connections at the same time to share the capital costs across multiple projects is an alternative approach. Such an approach currently exists (the Competing Applications Group concept) but has been found to create complexity and would require all transmission connection or expansion applicants to be at an equal stage of readiness throughout the process, which is an unrealistic expectation to place on project developers.
Neither approach is ideal, and risks stalling development of potentially significant new and existing industries.
The Fixed Capital Charge was tested by a Registration of Interest process conducted by Western Power and Energy Policy WA in 2023. The charge has been set at a rate that allows Western Power’s costs to be recovered over time while minimising the impacts on the existing customer base and ensuring that the charge does not inhibit investment in the State.
Connections and expansions to the distribution network will continue to pay contributions for shared assets calculated under Western Power’s current contributions policy.
This policy design reflects that distribution connections have a smaller impact on the shared transmission network and rarely trigger significant upgrades to shared assets.
Contribution arrangements under existing access agreements continue under their existing terms and are not impacted by the proposed changes. The charge only applies to new access agreements or modifications that exceed 10 MWs.
Yes. The Electricity Networks Access Code 2004 provides the payment mechanics, including an option to make payments over a period of up to five years.
The first payment would be due at the conclusion of the Planning stage of Western Power’s connection process.
Timelines for subsequent payments will be determined by Western Power, in line with existing payment processes.
Each payment after the first will incur an interest charge to recover the additional debt holding costs incurred by Western Power.
Western Power may require security to manage credit risk where the capital charge is paid in instalments. The Access Code already addresses the provision of security when capital contributions are paid in instalments, and same arrangements will apply for paying capital charges in instalments.
The capital charge amount will be indexed annually by the CPI based on the change in the All Groups CPI (weighted average of 8 capital cities) published by the Australian Bureau of Statistics.
The indexation formula ensures the capital charge maintains its real value over time. The indexed amount is rounded up to the nearest $1,000 and cannot decrease below the previous year's amount. The Economic Regulation Authority will publish the indexed value for each year on its website.
The capital charge only applies where the network service provider makes an offer to enter into or modify an access agreement on or after 1 October 2026. If the offer is made before that date, the existing capital contributions arrangements continue to apply.
A transitional provision is in place where an offer is made between 1 October 2026 and 31 March 2027 (six months) and the applicant considers the offer would have been made before 1 October 2026 but was delayed due to actions by Western Power. In this situation, the applicant may elect not to pay the capital charge, and Western Power must assess whether it caused the delay.
If Western Power determines that it caused the delay, the existing capital contributions arrangements apply instead of the capital charge.
If there is a dispute about whether Western Power caused the delay, the matter may be referred to arbitration or another dispute resolution process provided for under the Electricity Networks Access Code 2004. The applicant must give written notice within 14 days of receiving the offer.
This ensures that applicants have access to an independent mechanism to resolve disputes, while maintaining the integrity of the transitional arrangements.
The applicant would need to provide sufficient evidence to satisfy Western Power that the delay was attributable to Western Power and that, but for the delay, the offer would have been made before 1 October 2026. This could include correspondence, application timelines, or other documentation showing the progress of the connection application.
If Western Power determines that the grace period does not apply and the applicant disagrees, the applicant may seek a determination from the arbitrator under the Code's dispute resolution provisions.
If Western Power determines that the grace period does not apply, the connection applicant may apply to the arbitrator to determine the matter under the Code's arbitration provisions. If the arbitrator is satisfied the offer was delayed by Western Power and would otherwise have been made before 1 October 2026, the capital charge does not apply, and contributions will be determined using the original contributions arrangements.
Under the current shared assets capital contribution arrangements, the amount payable is calculated on a project-by-project basis and can be highly variable. Early estimates can have accuracy ranges of plus 100% to minus 50%, and the final amount often cannot be determined accurately until well into the connection process. This uncertainty can deter investment or render projects unviable after substantial resources have been committed.
The capital charge replaces this uncertainty with a fixed, known amount of $100,000/MW that can be factored into investment decisions from day one.
In some cases, yes. Under the current contribution arrangements, the amount payable depends on the specific location and nature of the connection. By introducing a fixed capital charge, some users pay more for connection, and some will pay less. The capital charge replaces this variability with a standardised amount per MW.
The key benefit is certainty: all users will know what they need to pay from the outset of the connection process, enabling better investment decisions.
Whether a project pays more or less under the capital charge compared to the existing shared asset contribution arrangements depends on the specific circumstances of the connection.
Under the existing regime, shared asset contributions are determined by the deep network upgrades required at any given location and how much the connecting project would contribute via tariffs.
Some projects that would have triggered significant shared network upgrades will pay less under the capital charge.
Larger projects connecting to relatively unconstrained parts of the network that would have paid minimal shared asset contributions may pay more.
A fixed price is central to achieving the certainty objective of the Capital Charges Scheme. The purpose of the capital charge is to provide certainty for capital contributions, not to provide signals for the location of generation, storage, and load.
Under the current variable contribution arrangements, the location of shared assets is a source of significant uncertainty in determining connection costs. Costs can vary dramatically depending on network conditions, and accurate estimates are often not available until late in the connection process. The flat charge addresses this by providing a known amount from day one, enabling project proponents to make informed investment decisions before committing significant resources.
Locational and network benefit signals are provided through other mechanisms, including:
- transmission planning documents, such as updates to the SWIS Transmission Plan, which signal where unconstrained network access will soon be made available;
- the Network Access Quantities arrangements in the Wholesale Electricity Market; and
- annual documents published by Western Power, such as the Transmission System Plan and Network Opportunity Map.
The capital charge addresses the 'first mover penalty' in relation to shared asset contributions. Previously, the first project to trigger a shared network upgrade could bear most of the cost, even though subsequent projects would benefit.
- Under the capital charge, all connecting parties pay the same flat rate regardless of whether their connection triggers new shared infrastructure. However, connection assets (assets solely for the connecting party's use) remain the responsibility of the connecting party
The Scheme includes several features to address avoidance:
- the empowering legislation allows the Electricity Networks Access Code to specify "additional circumstances" in which a capital charge is payable, beyond just entering into or modifying an access agreement. This provides flexibility to capture arrangements designed to avoid the charge.
For example, the 10 MW threshold applies per transmission connection point, not per access agreement. Splitting a project across multiple small connections to avoid the threshold would still require each connection point to be assessed.
No. The capital charge does not change Western Power's obligations under Part 8 of the Act and the Electricity Networks Access Code 2004. Western Power remains required to undertake and fund required work for applicants seeking access, and the access application, queuing, and dispute resolution processes will continue to apply.
The Code amendments preserve existing rights. For example, if Western Power refuses to undertake work pending payment of the capital charge, the applicant can seek arbitration. The Economic Regulation Authority continues to oversee Western Power's compliance with its access arrangement.
Under the current capital contribution arrangements, early connections to Clean Energy Link (CEL) projects would pay little or no shared asset costs for the CEL costs, and the capital costs would be recovered from all network customers via network tariffs. The flat capital charge provides a practical and fair method to charge capital costs to such projects and prevent cross-subsidy from other network users.