Access arrangement final decision Envestra Ltd 2013–17 Part 2: Attachments

Adjustments to labour and material escalation

412. 
     The AER has revised down the labour and material escalation that was proposed by Envestra for its Victorian and Albury networks. Internal and external labour escalation has been revised down. Materials escalation has been revised to nil real. This is discussed in Attachment A of the AER's final decision.
     

Table 4.36 Victorian network - AER approved capital expenditure^(a) by driver category over the 2013–17 access arrangement period ($million, 2011)

Category	2013	2014	2015	2016	2017	Total
Mains replacement	24.8	23.8	24.4	21.9	18.5	113.4
Residential connections	21.0	20.9	20.8	20.5	21.1	104.3
Commercial/industrial connections	3.3	6.2	6.2	5.3	6.5	27.5
Residential meter replacement	2.4	4.8	3.2	7.8	2.5	20.8
Commercial/industrial meter replacement	1.0	1.2	1.7	1.5	1.4	6.8
Augmentation	4.1	7.7	2.0	11.1	1.7	26.7
IT	3.7	7.4	3.0	0.2	0.7	14.9
SCADA	0.2	0.2	0.2	0.2	0.2	1.0
Other	4.1	5.2	4.4	2.6	2.3	18.6
Gas Extensions - Other	12.2	0.0	0.0	0.0	0.0	12.2
Gas Extensions - Energy for the Regions	0.0	5.7	0.0	0.0	0.0	5.7
Overheads	9.1	9.8	8.9	10.2	8.3	46.3
GROSS TOTAL CAPITAL EXPENDITURE	85.9	92.9	74.8	81.3	63.1	398.0
Customer contributions	3.3	1.6	1.6	1.6	1.6	9.5
Government contributions	0.0	7.5	0.0	0.0	0.0	7.5
NET TOTAL CAPITAL EXPENDITURE	82.6	83.9	73.2	79.7	61.6	381.0

Source: AER analysis.

Notes: (a) Including AER material and labour escalation adjustments, excluding network management fee.

414. 
     
     

Table 4.37 Albury network - AER approved capital expenditure^(a) by driver category over the 2013–17 access arrangement period ($million, 2011)

Category	2013	2014	2015	2016	2017	Total 2013-17
Mains replacement	0.01	0.01	0.01	0.01	0.01	0.04
Residential connections	0.45	0.53	0.54	0.55	0.56	2.63
Commercial/industrial connections	0.11	0.11	0.11	0.11	0.11	0.53
Residential meter replacement	0.07	0.06	0.09	0.05	0.04	0.32
Commercial/industrial meter replacement	0.03	0.02	0.03	0.02	0.02	0.12
Augmentation	0.01	-	-	-	0.43	0.44
IT	0.13	0.26	0.10	0.00	0.02	0.52
SCADA	0.02	0.02	0.02	0.02	0.02	0.09
Other	0.00	0.00	0.00	0.00	0.00	0.01
Gas Extensions - Other	-	-	-	-	-	-
Gas Extensions - Energy for the Regions	-	-	-	-	-	-
Overheads	0.18	0.22	0.20	0.19	0.23	1.02
GROSS TOTAL EXPENDITURE	0.99	1.23	1.10	0.96	1.45	5.73
Customer contributions	-	-	-	-	-	-
Government contributions	-	-	-	-	-	-
NET TOTAL EXPENDITURE	0.99	1.23	1.10	0.96	1.45	5.73

Source: AER analysis.

Notes: (a) Including AER material and labour escalation adjustments, excluding network management fee.

422. 
     
     

20.