Davies welcomes headworks relief for regional businesses
Author: Mia Davies
Published on: 02-June-2010
Member for the Agricultural Region Mia Davies has welcomed yesterday’s announcement that regional businesses wanting to establish or expand in edge of electricity grid and remote locations will be assisted with funding from Royalties for Regions.
Ms Davies said this is huge win for regional businesses, who have previously been slugged with unreasonable headworks charges.
“The headworks subsidy will provide much needed relief for regional businesses and act to remove a major impediment on regional growth,” Ms Davies said.
“The Nationals fought hard to reduce headworks costs while in opposition and it’s great that we can deliver on this through Royalties for Regions.”
The headworks charge is a one-off payment for customers to connect to the electricity network, or upgrade their connection, at remote or edge of grid locations.
“Some customers have faced unreasonably high charges, depending on their distance from a zone substation,” Ms Davies said.
The Distribution Headworks Charge will be totally subsidised for eligible customers requiring a new or expanded electricity supply from July 1.
Charges paid by customers since the scheme was introduced in 2007 will also be refunded, with funding provided through Royalties for Regions.
The subsidy will be capped at $1 million for any one connection, with applications greater than this amount being dealt with on a case-by-case basis. Individual connection charges will still apply.
The headworks scheme was introduced to replace the ‘first user pays all’ approach to headworks charging, with a part subsidy provided in the most remote locations where the charge was the highest.
