Network Limitations

We follow a clearly defined and efficient planning process for distribution network investment.

We apply the Network Planning and Expansion Framework in Chapter 5 of the National Electricity Rules (NER) published by the Australian Energy Market Commission (AEMC) where network limitations are initially highlighted in our Distribution Annual Planning Reports (DAPR’s).

For projects meeting criteria set by the NER, we apply the Regulatory Investment Test for Distribution (RIT-D) developed by the Australian Energy Regulator (AER).

With the RIT-D we identify the credible option that maximises the present value of the net economic benefit to all those who produce, consume and transport electricity in the National Electricity Market (NEM) operated by the Australian Energy Market Operator (AEMO). We consider both network and non-network solutions.

We forecast network limitations requiring corrective action at the following locations:

  • Brunswick Supply Area
  • Dock Area Zone Substation
  • Russell Place

Russell Place Zone Substation

Russell Place zone substation (RP) has multiple old assets in poor condition and at the end of their service life.

These assets pose increasing risk to safety and reliability of supply.

Under clause 5.17.4(c ) of the National Electricity Rules and pursuant to clause 5.17.(d), Citipower will not be publishing a non-network options report for the proposed works at RP zone substation as it has deemed there are no credible non network options to defer part of or all of the proposed works. CitiPower will continue preparation of the draft project assessment report for publication in due course.

Project milestones:

  • October 2019 — Publish Non Network Options Report
  • December 2019 — Publish Draft RIT-D Project Assessment Report
  • March 2020 — Publish Final RIT-D Project Assessment Report

For more detail, please refer to the Documents and Resources to the right.

Brunswick Supply Area

Brunswick zone substation (C) has multiple 80 year old assets in poor condition and at the end of their service life.

These assets pose increasing risk to safety and reliability of supply.

We are applying the Regulatory Investment Test for Distribution (RIT-D) to identify potential credible options. We have identified credible network options and are seeking alternative non-network options to address the identified need, namely, the increasing risks to safety and reliability of supply caused by the deterioration of the 80 year old assets at Brunswick (C) zone substation.

Project milestones:

  • February 2018 — Publish C Non-network Options Report
  • July 2018 — Publish Draft RIT-D Project Assessment Report
  • December 2018 — Pubish Final RIT-D Project Assessment Report
  • Before 2021/22 summer — carry out work to supply customers from C and retire assets at C

For more detail, please refer to the Documents and Resources to the right.

Dock Area Zone Substation

As part of the Ausnet Services West Melbourne Terminal Station (WMTS) 22 kV decommissioning program of works, Dock Area (DA) zone substation is one of five CitiPower zone substations impacted by this work and requires its 22 kV sub-transmission network uprated to 66 kV.

Under clause 5.17.4(c ) of the National Electricity Rules and pursuant to clause 5.17.(d), Citipower will not be publishing a non-network options report for the proposed works at DA zone substation as it has deemed there are no credible non network options to defer part of or all of the proposed works. CitiPower will continue preparation of the draft project assessment report for publication in due course.

Project milestones:

  • August 2018 — Publish Non Network Options Report
  • October 2018 — Publish Draft RIT-D Project Assessment Report
  • May 2019 — Publish Final RIT-D Project Assessment Report

For more detail, please refer to the Documents and Resources to the right.

Excluded RIT-D projects

From 18 September 2017, the Regulatory Investment Test for Distribution (RIT-D) will be extended to also apply to replacement-driven projects.

At that time, most network investments where the cost of the most expensive credible option to address a network need is more than $5 million must go through the RIT-D process.

Under the transitional arrangements for the implementation of the new rule, the following projects are excluded from the RIT-D:

  • replacement projects that have been “committed” to by a distributor on or prior to 30 January 2018; and
  • the second tranche of Rapid Fault Earth Current Limiters (REFCLs), in so far as they relate to replacement.

Distributors must publish and maintain a list of these excluded projects on their website, which is provided in the Documents and Resources to the right.

Documents and Resources

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