Public Lighting –
Victoria 2016-2020
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
2016-20
Today
Operation, maintenance, repair and replacement shared public lighting assets
Alternative control (fee- Alternative
based)
(fee based)
control
Operation, maintenance and repair - dedicated public
Negotiated
lighting assets
Alternative
(fee based)
control
Replacement - dedicated public lighting assets
Negotiated
Alternative
(fee based)
control
Alteration & relocation of DNSP public lighting
Negotiated
assets
Negotiated
New public lights (that is, new lighting types not
subject to a regulated charge and new public lighting Negotiated
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?