Table 5.1 Detailed issues and responses – Replacement expenditure Template / paragraph Description NSP comments AER views number CA Written Expenditure on NSPs required clarification on allocating expenditure for We consider NSPs decide to replace an asset after assessing the lifecycle costs of all available RIN – auxiliary works replacing assets that supplement the primary plant's options to meet the network need. Implicitly this involves deriving life-cycle cost estimates and replacement. proceeding with the lowest cost option. When determining the replacement expenditure to report, for DNSPs NSPs should include all expenditure directly attributable to replacing the asset category. Appendix E p. Transend raised this in its submission, noting a need for more 27 clarity of where to allocate repex costs to the electrical equipment categories or other. (Submission attachment p.1) for TNSPs Appendix E p. 25 Template Missing asset Throughout consultation NSPs questioned the merit/logic of In the explanatory statement to the draft RINs we noted that replacement expenditure excludes 2.2/5.2 for groups SCADA, network control and protection assets and IT being in expenditure associated with replacement of communications, IT assets for transmission and DNSPs & non-network rather than replacement expenditure. SCADA and protection assets for distribution. SCADA, Network 2.2/4.1 for control and CP/PC noted in its submission that separating Protection However in reflection of views of the NSPs we consider it is appropriate to add these groups back TNSPs protection assets relays, SCADA and Network control from replacement into repex and remove them from non-network: CA written RIN for distribution expenditure is different from its annual RIN. It strongly requests SCADA, Network Control and Protection systems: Replacement expenditure associated with – that the AER maintain the Annual RIN categories, given the IT & SCADA and network control hardware, software and associated IT systems. Includes replacement Businesses’ systems have been developed to report based on for DNSPs Communications for of protection and control systems and communication systems. This excludes all costs associated the Annual RIN. (Submission p.5) Appendix F p. with SCADA and Network Control Expenditure that exist within gateway devices (routers, bridges
Table 5.1 Detailed issues and responses – Replacement expenditure Template / paragraph number Description NSP comments AER views CA Written RIN – for DNSPs Appendix E p. 27 for TNSPs Appendix E p. 25 Expenditure on auxiliary works NSPs required clarification on allocating expenditure for replacing assets that supplement the primary plant's replacement. Transend raised this in its submission, noting a need for more clarity of where to allocate repex costs to the electrical equipment categories or other. (Submission attachment p.1) We consider NSPs decide to replace an asset after assessing the lifecycle costs of all available options to meet the network need. Implicitly this involves deriving life-cycle cost estimates and proceeding with the lowest cost option. When determining the replacement expenditure to report, NSPs should include all expenditure directly attributable to replacing the asset category. Template 2.2/5.2 for DNSPs & 2.2/4.1 for TNSPs CA written RIN – for DNSPs Appendix F p. Missing asset groups SCADA, Network control and protection assets for distribution IT & Communications for Throughout consultation NSPs questioned the merit/logic of SCADA, network control and protection assets and IT being in non-network rather than replacement expenditure. CP/PC noted in its submission that separating Protection relays, SCADA and Network control from replacement expenditure is different from its annual RIN. It strongly requests that the AER maintain the Annual RIN categories, given the Businesses’ systems have been developed to report based on the Annual RIN. (Submission p.5) In the explanatory statement to the draft RINs we noted that replacement expenditure excludes expenditure associated with replacement of communications, IT assets for transmission and SCADA and protection assets for distribution. However in reflection of views of the NSPs we consider it is appropriate to add these groups back into repex and remove them from non-network: SCADA, Network Control and Protection systems: Replacement expenditure associated with SCADA and network control hardware, software and associated IT systems. Includes replacement of protection and control systems and communication systems. This excludes all costs associated with SCADA and Network Control Expenditure that exist within gateway devices (routers, bridges