Public Lighting – Victoria 2016-2020

Presentation to Public Forum

Craig Madden and Nick InnesNetworks

22 June 2015

Key points

• The Framework and Approach - major shifts from the past:

1. Split of dedicated public lighting assets from shared public lighting assets

2. Unbundling of OMR charge for dedicated public lighting assets

Regulated and Negotiated

• Shared public lighting assets: public lighting assets on shared pole with electricity distribution assets– Price set by AER but proposed by

distributor in determination reset• Dedicated public lighting assets:

public lighting assets on a stand alone “dedicated” pole– Excised from public lighting regulatory

asset base– Price to be negotiated by councils

What is OMR?

• Price for operation, maintenance, repair and replacement– But of what exactly?

• Luminaires, Poles and Brackets, labour, truck visits, traffic control, corporate overhands (Public Lighting Code, April 2005)– Assets owned by distributor

(traditionally replace like-for-like)– Paid for by councils

Service ClassificationsAER service group—public lighting services

2016-20 Today

Operation, maintenance, repair and replacement - shared public lighting assets

Alternative control (fee-based)

Alternative control (fee based)

Operation, maintenance and repair - dedicated public lighting assets

NegotiatedAlternative control (fee based)

Replacement - dedicated public lighting assets

NegotiatedAlternative control (fee based)

Alteration & relocation of DNSP public lighting assets

Negotiated Negotiated

New public lights (that is, new lighting types not subject to a regulated charge and new public lighting at greenfield sites)

Negotiated Negotiated

Shared public lighting assets

• Luminaires on poles that has other electricity distribution assets attached (wires, substation transformer)

• Owned by distributor – who replace worn assets and maintain and operate the lighting system; council pays for this via annual charge (OMR) based on type of luminaire

• Access to installations controlled by Energy Safe Victoria restrictions

Dedicated public lighting assets

• Consist of dedicated public lighting (i.e. stand alone) poles (only attachment is a luminaire)

• Reclassified as negotiated– Menu of choices for operation,

maintenance, repair and replacement• Ownership retained by distributors

initially– But councils can negotiate to purchase

Why did AER make the change?

• To enable competition and contestability in lighting provision; to enable councils to negotiate and thereby control lighting options.– Submitters proposed it (Streetlight

Group of Councils)• How does it affect council?

– Ability to determine who you want to undertake maintenance and capital replacement

– Consider if you want to own these assets

– Negotiate prices, and decide how (individual or collective)

Other services

• Alteration and relocation of distributors public lighting assets remain negotiated services– How this applies in practice

• Greenfield sites and emerging technologies remain negotiated services– How this applies in practice

• AER is concerned over continuing reports of difficulties getting new lighting types approved– Emerging technology (i.e. LEDs)

Concluding comments

• Significant phase of regulatory and market evolution is promoting direct customer engagement

• We expect this to drive improvements in public lighting outcomes

Discussion

• Questions and comments?