Under the Electricity Networks Access Code 2004 an augmentation in relation to a covered network, means an increase in the capability of the covered network to provide covered services, including by the development, construction, acquisition or commissioning of new network services.
The new facilities investment test is applied to determine the extent to which capital expenditure for major augmentations can be recovered through regulated tariffs. The test seeks to ensure that only efficient investment, which benefits all users of the network, is recovered through regulated tariffs.
The regulatory test assesses whether the proposed network augmentation is the best way of overcoming constraints in the wider electricity system and that it maximises the net benefit after considering alternative options.
Western Power has submitted the following applications for the regulatory test and/or new facilities investment test.