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The review addresses implementation issues observed during the 2023 price review, particularly insufficient justification of NCC costs and preferences for standard pricing where costs materially differ. Feedback will inform NCC guidance for the 2028 water price review.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/review-of-new-customer-contributions-consultation-paper-15-august-2024/178453/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/review-of-new-customer-contributions-consultation-paper-15-august-2024/178453.png","ImageObject",442,249,{"name":88,"@type":89},"Ophelia","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/vnd.openxmlformats-officedocument.wordprocessingml.document","2026-10-16","2026-09-02",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What is the purpose of the Essential Services Commission’s NCC review in Victoria?","Question",{"text":109,"@type":110},"The review examines implementation issues with the principles-based NCC framework and aims to inform NCC guidance for the 2028 water price review, based on stakeholder feedback.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What objectives does the current NCC framework aim to achieve?",{"text":114,"@type":110},"It seeks to signal developers about location-specific development costs, share growth costs and benefits between new and existing customers, and administer NCCs in a transparent way.",{"name":116,"@type":107,"acceptedAnswer":117},"Which topics in the 2023 price review prompted this consultation?",{"text":118,"@type":110},"The commission identified cases where some water businesses did not sufficiently justify costs allocated to NCCs and where pricing arrangements were favoured despite significant cost differences across areas or locations.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},178453,1790485253,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":136,"language":137,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":61,"update_tm":141,"read_time":30},7971461741311,"https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826","\u0003\u0003  \u0004\n\u0003Review of New Customer Contributions\u0004\n\u0003Consultation paper\u0004\n\u000315 August 2024\u0004\n\u000f\u0004\nAcknowledgement\nWe acknowledge the Traditional Owners of the lands and waterways on which we work and live.\nWe acknowledge all Aboriginal and Torres Strait Islander communities, and pay our respects to Elders past and present.\nAs the First Peoples of this land, belonging to the world’s oldest living cultures, we recognise and value their knowledge, and ongoing role in shaping and enriching the story of Victoria.\nAn appropriate citation for this paper is:\nEssential Services Commission \u00032024\u0004, Review of New Customer Contributions: \u0003Consultation paper\u0004 \u000315 August \u0004 \u00032024\u0004\n© Essential Services Commission, \u00032024\u0004\nThis work, Review of New Customer Contributions: \u0003Consultation paper\u0004, is licensed under a Creative Commons Attribution 4.0 licence [creativecommons.org/licenses/by/4.0]. You are free to re-use the work under that licence, on the condition that you credit the Essential Services Commission as author, indicate if changes were made and comply with the other licence terms.\nThe licence does not apply to any brand logo, images or photographs within the publication.\u0003  \u0004\nContents\n\u0013 TOC \\h \\z \\t \"Heading 1,1,Heading 2,3,Heading 3,5,Heading 1 numbered,2,Heading 2 numbered,4,Heading 3 numbered,6\" \u0014\u0013 HYPERLINK \\l \"_Toc174348944\" \u0014Acknowledgement\t\u0013 PAGEREF _Toc174348944 \\h \u0014i\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348945\" \u00141.\tOverview\t\u0013 PAGEREF _Toc174348945 \\h \u00141\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348950\" \u00142.\tNew customer contributions and the regulatory framework\t\u0013 PAGEREF _Toc174348950 \\h \u00147\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348958\" \u00143.\tA principles-based new customer contributions framework\t\u0013 PAGEREF _Toc174348958 \\h \u001414\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348961\" \u00144.\tGood implementation of new customer contributions within a principles-based framework\t\u0013 PAGEREF _Toc174348961 \\h \u001417\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348967\" \u00145.\tKey implementation issues to address\t\u0013 PAGEREF _Toc174348967 \\h \u001420\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348968\" \u0014Unjustified cost attribution\t\u0013 PAGEREF _Toc174348968 \\h \u001420\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348969\" \u0014A preference for standard pricing\t\u0013 PAGEREF _Toc174348969 \\h \u001421\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348970\" \u0014Negotiating framework requirements inadequately met\t\u0013 PAGEREF _Toc174348970 \\h \u001422\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348971\" \u0014Engagement issues\t\u0013 PAGEREF _Toc174348971 \\h \u001423\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348972\" \u0014Application of an average incremental cost approach\t\u0013 PAGEREF _Toc174348972 \\h \u001423\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348973\" \u0014Uncertainty around gifted or reticulated assets\t\u0013 PAGEREF _Toc174348973 \\h \u001424\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348974\" \u0014Timing of development and development servicing plans\t\u0013 PAGEREF _Toc174348974 \\h \u001425\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348975\" \u0014Guidance for new customer contributions\t\u0013 PAGEREF _Toc174348975 \\h \u001426\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348976\" \u0014Appendix A - Technical concepts\t\u0013 PAGEREF _Toc174348976 \\h \u001427\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348977\" \u0014A.1\tPurpose and structure of Appendix A\t\u0013 PAGEREF _Toc174348977 \\h \u001427\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348978\" \u0014A.2\tKey functions of new customer contributions regulation\t\u0013 PAGEREF _Toc174348978 \\h \u001427\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348981\" \u0014A.3\tKey economic concepts\t\u0013 PAGEREF _Toc174348981 \\h \u001430\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348989\" \u0014A.4\tKey trade-offs\t\u0013 PAGEREF _Toc174348989 \\h \u001438\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348990\" \u0014A.5.\tVictorian water policy context\t\u0013 PAGEREF _Toc174348990 \\h \u001438\u0015\u0015\n\u0013 HYPERLINK \\l \"_Toc174348994\" \u0014A.6\tWhat discretion do water businesses have?\t\u0013 PAGEREF _Toc174348994 \\h \u001440\u0015\u0015\n\u0015\nOverview\nThe Essential Services Commission (commission) has commenced a review of new customer contributions (NCC) in Victoria’s water sector.\nSince 2013 the commission has applied a principles-based NCC framework which aims to:\nsend signals to developers about the costs of developing in different locations\nshare the costs and benefits of growth between new and existing customers\nadminister new customer contributions in a transparent way.\nWe consider these objectives remain s","cbCaibjSdaqFeM2V","https://ap.wps.com/l/cbCaibjSdaqFeM2V","docx",423613,45,"English","# Acknowledgement\n# Overview\n# Contents","[{\"question\":\"What is the purpose of the Essential Services Commission’s NCC review in Victoria?\",\"answer\":\"The review examines implementation issues with the principles-based NCC framework and aims to inform NCC guidance for the 2028 water price review, based on stakeholder feedback.\"},{\"question\":\"What objectives does the current NCC framework aim to achieve?\",\"answer\":\"It seeks to signal developers about location-specific development costs, share growth costs and benefits between new and existing customers, and administer NCCs in a transparent way.\"},{\"question\":\"Which topics in the 2023 price review prompted this consultation?\",\"answer\":\"The commission identified cases where some water businesses did not sufficiently justify costs allocated to NCCs and where pricing arrangements were favoured despite significant cost differences across areas or locations.\"}]","Review of New Customer Contributions - Consultation paper - 15 August 2024 | DOCX",1788331902]