Customers wishing to connect to the electricity network for the first time or those requiring an increase in supply capacity may be required to pay a contribution to offset part of our costs for providing the connection. The amount to be paid (known as a “Customer Contribution”) is not a fixed sum; it is determined case by case by considering the estimated costs for the work required and the supply capacity to be taken.
Each of PowerNet’s network owners establish a contribution (known as a “Network Contribution”), they are prepared to pay towards new connections on their network. These amounts vary according to the size of new supply, and represent the economic return from normal line charges for each supply capacity. The customer’s contribution is the one-off extra line charge that covers the shortfall between the Network Contribution and the actual cost of the new connection or extra capacity.
Charging the Customer Contribution ensures existing customers are not subsidising the costs for new connections or network developments that they are not part of. If a customer is going to be asked for a Customer Contribution they will be formally quoted that figure, which must be accepted in writing before any work commences. They are likely to also be asked to pay a deposit along with their acceptance of the quote.
Subdivisions are treated in the same fashion, with the Network Contributions set to reflect the potential return from all the new connection points created for all the individual properties that result from the subdivision.