Friday February 22 , 2019
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URGENT UPDATE - Ergon , Telstra & QLeave

SPA has been made aware of information regarding Ergon, Telstra and Qleave which impacts on all land developments.

ERGON UPDATE: Ergon have advised that their new Capital Contributions Policy is now in operation with the following impact on the development industry:

  • Most Ergon related works and associated Real Estate Developments are now determined as “Alternative Control Service” works and the effect is that Ergon will charge using either fixed fees (for applications) or on an estimate of cost basis using fees and rates agreed by the Australian Energy Regulator (AER).
  • All applications to Ergon for subdivisions or industrial commercial projects that previously would have cost $250.00 will now cost in the order of $980.00 per application.
  • Where Ergon have to carry out a planning study or a protection study for a project, they will now be charging. Indicative costs are likely to be above $1,450.00 for a protection study and over $2,300.00 for a planning study.
  • Where Ergon have to carry out works extra to that which is already in their planning window, the full cost of those works will have to be paid by the developer who requests the works. Ergon are looking at a reimbursement scheme so that subsequent developers who take advantage of the works within 5 years would pay an amount that would be reimbursed to the original developer.
  • A “Real Estate Development” includes a shopping centre or industrial subdivision, etc where extra load is required, e.g. a new building on a commercial lot for a new group of shops. Ergon will charge the full cost of these works and will not reduce the amounts considering the revenue that they will receive from the project.

You can view SPA's updated submission to the Australian Energy Regulator here.

TELSTRA UPDATE: Telstra have advised a new policy that as of 1 July 2015 in addition to developers having to design and construct pit and pipe they will now have to pay for Telstra to provide wiring and backhaul. The exact amounts are still being determined, but will vary depending upon the size and location of the project and where backhaul is required. Telstra will also be charging for this work.   This new policy also applies to all projects where the application was made between 1-3-2015 and 1-7-2015 and Telstra incur ‘significant costs servicing the project’ or where the pit and pipe is not made available before 1-3-2016. Where an application was made prior to 1-3-2015 and the pit and pipe was made available to Telstra prior to 1-3-2016, Telstra will not generally charge. The Telstra policy is available at   https://www.telstra.com.au/content/dam/tcom/external/telstra-smart-community/Telstra-New-Developments-Policy.pdf?test

 

Qleave UPDATE:   Over the last week we have received many letters from QLeave (Ms Miki Toohey
07 3212 6891 / 1800 803 481, This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) advising for particular projects that they require payment of the QLeave levy. Most developers have not been paying the QLeave levy for the electrical works on their projects and QLeave audited Ergon Energy who have passed to QLeave information regarding contestable subdivisions and as a result QLeave is seeking payment of the QLeave levies for the electrical component of projects. If you have not paid the QLeave levy on the electrical component of your project, you can expect an email, letter or phone call requiring you to make payment to them within 14 days. Please feel free to contact Ms Miki Toohey directly to discuss any concerns that you may have.