ELC 2010 already requires a responsible person to establish procedures for the independent resolution of disputes relating to electric line clearance. The new requirement in ELC 2015 is to include information on how to access a dispute procedure. The requirement to provide notices to councils is mentioned explicitly in ELC 2015, however ELC 2010 already required Jemena to provide a notice to all affected persons. The definition of affected person in ELC 2010 (provided above) included a person who is responsible for the management of public land. We consider this definition includes the local councils. We also note that ESV has explicitly stated that it have no issue with a direct notice to the properties close to the trees instead of a notice in a newspaper, as an equivalent safety outcome." Based on this we do not consider Jemena requires additional opex to publish notices in a newspaper because it would already be providing notices directly for affected customers. Assistance provided to councils We consider the requirement for Jemena to provide assistance to local councils represents a new regulatory obligation. Under ELC 2015, if requested by a Council, Jemena is required to provide advice on: safe limits of approach to electric lines for cutting or removing a tree methods for cutting or removing a tree. Jemena proposed of $1.15 million ($2015) to provide this advice to its local councils. In its guidance to Victorian DNSPs, ESV stated: For many years now the DB's have had in place resources to support their stakeholders when electrical safety concerns were raised about work in the vicinity of their power lines. Despite the absence of this clause in previous ELC regulations, it has always been ESV's expectation that the DB's would have provided the same or similar support on request. We note prior to ELC 2015, Jemena did not provide support to its local councils on safety issues. Although ESV considers providing support to local councils is good industry practice, this is a new obligation in ELC 2015. We consider Jemena's forecast to provide information on safe cutting methods and sag and sway information is efficient and prudent. Offsetting costs In our preliminary decision, we identified potential cost savings due to the reintroduction of exceptions for structural branches. we provided Jemena with a step change for the removal of these exceptions in ELC 2010 in our previous regulatory determination, we considered there may be potential for cost savings as these exceptions are reintroduced in ELC 2015.
ELC 2010 already requires a responsible person to establish procedures for the independent resolution of disputes relating to electric line clearance. The new requirement in ELC 2015 is to include information on how to access a dispute procedure. The requirement to provide notices to councils is mentioned explicitly in ELC 2015, however ELC 2010 already required Jemena to provide a notice to all affected persons. The definition of affected person in ELC 2010 (provided above) included a person who is responsible for the management of public land. We consider this definition includes the local councils. We also note that ESV has explicitly stated that it have no issue with a direct notice to the properties close to the trees instead of a notice in a newspaper, as an equivalent safety outcome." Based on this we do not consider Jemena requires additional opex to publish notices in a newspaper because it would already be providing notices directly for affected customers. Assistance provided to councils We consider the requirement for Jemena to provide assistance to local councils represents a new regulatory obligation. Under ELC 2015, if requested by a Council, Jemena is required to provide advice on: safe limits of approach to electric lines for cutting or removing a tree methods for cutting or removing a tree. Jemena proposed of $1.15 million ($2015) to provide this advice to its local councils. In its guidance to Victorian DNSPs, ESV stated: For many years now the DB's have had in place resources to support their stakeholders when electrical safety concerns were raised about work in the vicinity of their power lines. Despite the absence of this clause in previous ELC regulations, it has always been ESV's expectation that the DB's would have provided the same or similar support on request. We note prior to ELC 2015, Jemena did not provide support to its local councils on safety issues. Although ESV considers providing support to local councils is good industry practice, this is a new obligation in ELC 2015. We consider Jemena's forecast to provide information on safe cutting methods and sag and sway information is efficient and prudent. Offsetting costs In our preliminary decision, we identified potential cost savings due to the reintroduction of exceptions for structural branches. we provided Jemena with a step change for the removal of these exceptions in ELC 2010 in our previous regulatory determination, we considered there may be potential for cost savings as these exceptions are reintroduced in ELC 2015.
AER%20-%20Final%20decision%20Jemena%20distribution%20determination%20-%20Attachment%207%20-%20Operating%20expenditure%20-%20May%202016.DOCX