Public Lighting – Victoria Presentation to Public Forum Craig Madden and Nick Innes Networks 22 June 2015

Key points The Framework and Approach - major shifts from the past: 1.Split of dedicated public lighting assets from shared public lighting assets 2.Unbundling of OMR charge for dedicated public lighting assets

Regulated and Negotiated Shared public lighting assets: public lighting assets on shared pole with electricity distribution assets –Price set by AER but proposed by distributor in determination reset Dedicated public lighting assets: public lighting assets on a stand alone “dedicated” pole –Excised from public lighting regulatory asset base –Price to be negotiated by councils

What is OMR? Price for operation, maintenance, repair and replacement –But of what exactly? Luminaires, Poles and Brackets, labour, truck visits, traffic control, corporate overhands (Public Lighting Code, April 2005) –Assets owned by distributor (traditionally replace like-for-like) –Paid for by councils

Service Classifications AER service group—public lighting services Today Operation, maintenance, repair and replacement - shared public lighting assets Alternative control (fee- based) Alternative control (fee based) Operation, maintenance and repair - dedicated public lighting assets Negotiated Alternative control (fee based) Replacement - dedicated public lighting assetsNegotiated Alternative control (fee based) Alteration & relocation of DNSP public lighting assets Negotiated New public lights (that is, new lighting types not subject to a regulated charge and new public lighting at greenfield sites) Negotiated

Shared public lighting assets Luminaires on poles that has other electricity distribution assets attached (wires, substation transformer) Owned by distributor – who replace worn assets and maintain and operate the lighting system; council pays for this via annual charge (OMR) based on type of luminaire Access to installations controlled by Energy Safe Victoria restrictions

Dedicated public lighting assets Consist of dedicated public lighting (i.e. stand alone) poles (only attachment is a luminaire) Reclassified as negotiated –Menu of choices for operation, maintenance, repair and replacement Ownership retained by distributors initially –But councils can negotiate to purchase

Why did AER make the change? To enable competition and contestability in lighting provision; to enable councils to negotiate and thereby control lighting options. –Submitters proposed it (Streetlight Group of Councils) How does it affect council? –Ability to determine who you want to undertake maintenance and capital replacement –Consider if you want to own these assets –Negotiate prices, and decide how (individual or collective)

Other services Alteration and relocation of distributors public lighting assets remain negotiated services –How this applies in practice Greenfield sites and emerging technologies remain negotiated services –How this applies in practice AER is concerned over continuing reports of difficulties getting new lighting types approved –Emerging technology (i.e. LEDs)

Concluding comments Significant phase of regulatory and market evolution is promoting direct customer engagement We expect this to drive improvements in public lighting outcomes

Discussion Questions and comments?