The State Government will subsidise electricity headworks charges for new connections in remote, edge-of-grid locations, including Ravensthorpe, Bremer Bay and Walpole, under a $4 million, four-year subsidy plan, Energy Minister Francis Logan has announce
The State Government will subsidise electricity headworks charges for new connections in remote, edge-of-grid locations, including Ravensthorpe, Bremer Bay and Walpole, under a $4 million, four-year subsidy plan, Energy Minister Francis Logan has announced.
The full text of a Ministerial announcement is pasted below
The State Government will subsidise electricity headworks charges for new connections in remote, edge-of-grid locations, including Ravensthorpe, Bremer Bay and Walpole.
The $4 million four-year subsidy plan follows Cabinet's endorsement of Western Power's new distribution headworks scheme.
Headworks charges cover the cost of providing additional electricity capacity and is paid in addition to normal connection fees.
Energy Minister Francis Logan said the subsidy plan would reduce headworks charges for residential blocks by up to 50 per cent and, by up to 70 per cent for industrial and light commercial developments.
Mr Logan said Western Power's new headworks scheme would deliver key benefits, particularly in regional areas.
He said it would allow stalled expansions to proceed and enable sustainable development of regional and rural electricity services.
"Under the scheme, users will now only pay charges that relate to their own usage and location," the Minister said.
"Previously the full, upfront cost of the entire network upgrade was applied to the unfortunate first user who triggered the need for increased network capacity.
"The new scheme is a fairer and more equitable way of applying these costs and remains consistent with the State Government's longstanding policy of requiring users to meet the network costs associated with providing their electricity supply.
"The greater certainty and transparency provided by the scheme will lead to an increase in network investment and expansion in rural and remote areas. This new streamlined approach will be easier to administer and will enable Western Power to calculate the charges more quickly."
Mr Logan said despite the improved approach, areas located a long distance from the main network infrastructure - Ravensthorpe, Bremer Bay and Walpole, for example - still faced high headworks charges.
However, the Minister said the new subsidy plan would significantly lessen the impact on users in these areas and would ensure that network capacity was increased at a reasonable cost.
"For standard residential subdivisions, headworks charges will be capped at $11,000 per block, with the subsidy applying above $5,500," he said.
"Similarly, charges for commercial and light industrial developments will be capped to ensure that headworks charges do not present an unmanageable cost barrier to new development.
"For example, the subsidy will reduce the headworks charge for a residential block in Ravensthorpe from $21,000 to $11,000, in Bremer Bay from $9,600 to $7,500, and in Walpole from $11,000 to $8,200.
"Because of their large electricity demands, businesses would face higher charges and greater subsidies will be provided.
"A new business such as a small supermarket would have its headworks charge reduced from $160,000 to $50,000 in Ravensthorpe, in Bremer Bay from $73,000 to $41,000 and in Walpole from $83,000 to $44,000."
The subsidy will be applied automatically by Western Power and is in addition to any other State Government support mechanisms. Normal connection fees still apply.
