Alternative control services Alternative control services are services provided by distributors to specific customers. They do not form part of the distribution use of system revenue allowance provided by us to each distributor. Rather, distributors recover the costs of providing alternative control services through a selection of prices with most charged on a ‘user pays’ basis. In this attachment, we set out our final determination on the prices Energex is allowed to charge customers for the provision of ancillary network services, metering, and public lighting. The approved prices are set out at appendix A. Public Lighting Final decision We do not approve Energex's proposed public lighting charges because we have determined: a nominal post-tax weighted average cost of capital (WACC) of 6.01 per cent instead of the proposed 7.42 per cent imputation credit assumption of 40 per cent instead of the proposed 25 per cent. This final decision adopts the same estimate of WACC as for standard control services. The reasons for the nominal post-tax WACC and imputation credit assumption are discussed in attachment 3 Rate of return. — In all other respects we have approved Energex's proposal. Final decision prices for each light type are set out in table 16.1. Table 16.1 Final decision prices for public lights, $ day 2015—16 2016—17 2017—18 2018—19 2019—20 Major public lights 0.78 0.80 0.82 0.84 0.87 non-contributed Major public lights 0.27 0.28 0.29 0.29 0.30 contributed Minor public lights 0.36 0.37 0.38 0.39 0.40 non-contributed Minor public lights 0.13 0.13 0.14 0.14 0.15 contributed Source: AER analysis.
Alternative control services Alternative control services are services provided by distributors to specific customers. They do not form part of the distribution use of system revenue allowance provided by us to each distributor. Rather, distributors recover the costs of providing alternative control services through a selection of prices with most charged on a ‘user pays’ basis. In this attachment, we set out our final determination on the prices Energex is allowed to charge customers for the provision of ancillary network services, metering, and public lighting. The approved prices are set out at appendix A. Public Lighting Final decision We do not approve Energex's proposed public lighting charges because we have determined: a nominal post-tax weighted average cost of capital (WACC) of 6.01 per cent instead of the proposed 7.42 per cent imputation credit assumption of 40 per cent instead of the proposed 25 per cent. This final decision adopts the same estimate of WACC as for standard control services. The reasons for the nominal post-tax WACC and imputation credit assumption are discussed in attachment 3 — Rate of return. In all other respects we have approved Energex's proposal. Final decision prices for each light type are set out in table 16.1. Table 16.1 Final decision prices for public lights, $ day 2015—16 2016—17 2017—18 2018—19 2019—20 Major public lights non-contributed 0.78 0.80 0.82 0.84 0.87 Major public lights contributed 0.27 0.28 0.29 0.29 0.30 Minor public lights non-contributed 0.36 0.37 0.38 0.39 0.40 Minor public lights contributed 0.13 0.13 0.14 0.14 0.15 Source: AER analysis.
AER%20-%20Final%20decision%20Energex%20distribution%20determination%20-%20Attachment%2016%20-%20Alternative%20control%20services%20-%20October%202015.DOCX