❓ A WA parliamentary question addresses whether network upgrades in the southwest electrical distribution system were subject to regulatory tests following the 2004 electricity access code. The Minister clarifies the timing of the application of these tests, linking it to the approval of a new access arrangement.
AnsweredQoN 62Legislative Council
QuestionView source ↗
I refer to the $2.32 billion budgeted expenditure on network upgrades within the south west electrical distribution system. (1) Will the minister inform the house if the expenditure on network upgrades undertaken since the new electricity access code 2004 was gazetted on 30 November 2004 has been subject to - (a) the regulatory test under section 9.1; and (b) the new facility network test under section 6.52? (2) If no to (1)(a) and (1)(b), will the minister explain in each instance why the funds are not subject to the new electricity market rules, given that the regulations and codes are already in force? (3) Can the minister assure the house that all future expenditure on network upgrades will be subject to the electricity market rules and regulations? (4) If no to (3), why not? Hon KIM CHANCE
AnswerView source ↗
I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(1) Will the minister inform the house if the expenditure on network upgrades undertaken since the new electricity access code 2004 was gazetted on 30 November 2004 has been subject to - (a) the regulatory test under section 9.1; and (b) the new facility network test under section 6.52? (2) If no to (1)(a) and (1)(b), will the minister explain in each instance why the funds are not subject to the new electricity market rules, given that the regulations and codes are already in force? (3) Can the minister assure the house that all future expenditure on network upgrades will be subject to the electricity market rules and regulations? (4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(b) the new facility network test under section 6.52?
(3) Can the minister assure the house that all future expenditure on network upgrades will be subject to the electricity market rules and regulations? (4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(4) Not applicable.
(1) Will the minister inform the house if the expenditure on network upgrades undertaken since the new electricity access code 2004 was gazetted on 30 November 2004 has been subject to - (a) the regulatory test under section 9.1; and (b) the new facility network test under section 6.52? (2) If no to (1)(a) and (1)(b), will the minister explain in each instance why the funds are not subject to the new electricity market rules, given that the regulations and codes are already in force? (3) Can the minister assure the house that all future expenditure on network upgrades will be subject to the electricity market rules and regulations? (4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(b) the new facility network test under section 6.52?
(3) Can the minister assure the house that all future expenditure on network upgrades will be subject to the electricity market rules and regulations? (4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(4) If no to (3), why not? Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
Hon KIM CHANCE replied: I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
I thank the Hon Paul Llewellyn for some notice of this question. (1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(1) As required by the access code, Western Power submitted a proposed access arrangement in August 2005 to the Economic Regulation Authority for approval. Coincidentally, the Economic Regulation Authority’s draft decision on this submission will be published today; this answer bears today’s date. This access arrangement, when approved, will apply for a three-year term, and all capital expenditure proposed in this period will be subject to the new facilities investment test and, where required for major projects, the regulatory test. However, these tests have not been formally applied to capital expenditures occurring since 30 November 2004, as they were considered impractical to do so in advance of the access arrangement approval, a view shared by the ERA. In any event, the overwhelming majority of capital expenditure in this period is effectively non-discretionary, being required to meet the unprecedented high growth in new customer connections and electrical load. (2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(2) Refer to the above answer. (3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(3) From the commencement of the new access arrangement in mid-2006, all capital expenditure will be subject to the new facilities investment and regulatory tests as prescribed in the access code. (4) Not applicable.
(4) Not applicable.
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