The above figure shows that sub-transmission lines represent a small proportion of total network line length. Ausgrid has the greatest proportion of sub-transmission lines - representing 10.6% of the network. Endeavour Energy reported a value of 10.1% and Essential Energy 7.9%. The average proportion of Victorian and South Australian sub-transmission lines was 5.4%. This suggests that relative to the comparison firms, ActewAGL has a cost advantage. However, ActewAGL's size and the voltage of its subtransmission system may offset this. Being a relatively small service provider, ActewAGL may not be able to achieve the same economies of scale that the larger comparison firms may be able to in their subtransmission networks. Additionally, ActewAGL's subtransmission network is exclusively 132kV, while in general the subtransmission networks of the comparison firms are 66kV. These things in combination may offset the advantage of having less subtransmission, relative to the comparison firms. Backyard reticulation Backyard reticulation is a description for the ACT practice of running overhead lines along the rear property boundaries in urban residential areas. This practice was halted in favour of undergrounding a number of decades ago, but there remains a legacy of backyard reticulation lines many ACT suburbs. Backyard reticulation is only applicable to low voltage overhead lines in the ACT. Typically the pole line is run in parallel with the adjoining property boundaries of the residential properties. This keeps the overhead lines from being viewed from the street and was considered to increase the visual amenity of the suburb. ActewAGL has identified backyard reticulation as an operating environment factor that is likely to affect their benchmarking results. ActewAGL considers that backyard reticulation increases their replacement capex. ActewAGL has reported a total network length of 5,088km. Table D2 shows the proportion of backyard reticulation of this network. Table Proportion of backyard reticulation Network component (circuit length) (km) Proportion (%) ActewAGL Total network 5,088 ActewAGL overhead network 2,394 47%
The above figure shows that sub-transmission lines represent a small proportion of total network line length. Ausgrid has the greatest proportion of sub-transmission lines - representing 10.6% of the network. Endeavour Energy reported a value of 10.1% and Essential Energy 7.9%. The average proportion of Victorian and South Australian sub-transmission lines was 5.4%. This suggests that relative to the comparison firms, ActewAGL has a cost advantage. However, ActewAGL's size and the voltage of its subtransmission system may offset this. Being a relatively small service provider, ActewAGL may not be able to achieve the same economies of scale that the larger comparison firms may be able to in their subtransmission networks. Additionally, ActewAGL's subtransmission network is exclusively 132kV, while in general the subtransmission networks of the comparison firms are 66kV. These things in combination may offset the advantage of having less subtransmission, relative to the comparison firms. Backyard reticulation Backyard reticulation is a description for the ACT practice of running overhead lines along the rear property boundaries in urban residential areas. This practice was halted in favour of undergrounding a number of decades ago, but there remains a legacy of backyard reticulation lines many ACT suburbs. Backyard reticulation is only applicable to low voltage overhead lines in the ACT. Typically the pole line is run in parallel with the adjoining property boundaries of the residential properties. This keeps the overhead lines from being viewed from the street and was considered to increase the visual amenity of the suburb. ActewAGL has identified backyard reticulation as an operating environment factor that is likely to affect their benchmarking results. ActewAGL considers that backyard reticulation increases their replacement capex. ActewAGL has reported a total network length of 5,088km. Table D2 shows the proportion of backyard reticulation of this network. Table Proportion of backyard reticulation Network component (circuit length) (km) Proportion (%) ActewAGL Total network 5,088 ActewAGL overhead network 2,394 47%
AER%20%E2%80%93%20Draft%20decision%20Endeavour%20Energy%20distribution%20determination%20%E2%80%93%20Attachment%206%20%E2%80%93%20%20Capital%20expenditure%20%E2%80%93%20November%202014.DOCX