CEOP2015 - Essential Energy

General Terms & 

Conditions for the 

Supply of Electricity to 

New Subdivisions and 

Site Developments 

March 2011 

29 MARCH 2011 

ISSUE 3 

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UNCONTROLLED COPY IF PRINTED

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OPERATIONAL PROCEDURE - General Terms And Conditions 

For The Supply Of Electricity To New 

Subdivisions And Site Developments 

CEOP2015 

PREPARED BY: 

Streetlight Business Process Analyst 

AUTHORISED BY: 

Manager Streetlight Business 

DOCUMENT NUMBER: CEOP2015 - Issue 3 

This plan is copyright. No part may be reproduced by any process without written permission, 

except as permitted under the copyright act. 

DISCLAIMER 

1 Essential Energy may change the information in this document without notice. All changes 

take effect on the date made by Essential Energy. A print version is always an uncontrolled 

copy. Before using this document, please ensure that it is still current. 

2 This document may contain confidential information. Restrictions on the use and disclosure 

of confidential information by employees are set out in your contract of employment. 

Restrictions on the use and disclosure of confidential information by contractors are set out in 

your contract of engagement with Essential Energy. Sub-contractors are bound by the 

confidentiality provisions set out in their contract with the contractor engaged by Essential 

Energy. 

2011 ESSE N T I A L E N E R G Y 

29 March 2011 - Issue No. 3 

Approved By: Group General Manager Networks and Infrastructure 

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CONTENTS PAGE 

1 INTRODUCTION ............................................................................................. 4 

2 CONTESTABLE WORKS ................................................................................... 5 

2.1 Categories Of Contestable Works ..................................................................... 5 

2.2 General Principles .......................................................................................... 5 

2.3 Legal ............................................................................................................ 6 

2.3.1 Stakeholder Relationship ............................................................................ 6 

2.3.2 Indemnity ................................................................................................ 6 

2.4 Customer Responsibility ................................................................................. 6 

2.5 Standards And Specifications .......................................................................... 7 

2.6 Materials ...................................................................................................... 8 

2.7 Environmental Assessment ............................................................................. 8 

2.8 Easements .................................................................................................... 8 

2.9 Street Lighting .............................................................................................. 9 

2.9.1 Public Roadways ....................................................................................... 9 

2.9.2 Private Roadways/Community Titles ............................................................ 9 

2.10 Non Electrical Works ...................................................................................... 9 

3 CONTESTABILITY – THE COMPETITIVE PROCESS .............................................. 10 

3.1 Customer Enquiry ......................................................................................... 10 

3.2 Design Information ....................................................................................... 10 

3.3 Design Submission ........................................................................................ 11 

3.4 Design Certification ....................................................................................... 11 

3.4.1 Requirements for Certification: .................................................................. 12 

3.5 Notification To Commence Construction ........................................................... 12 

3.6 Notice Of Arrangement .................................................................................. 12 

3.7 Access Permit/Outage Request ....................................................................... 12 

3.8 “As Installed” Plan ........................................................................................ 13 

3.9 Completion Notice ......................................................................................... 13 

3.10 Warranty ..................................................................................................... 13 

3.11 Certificate Of Acceptance ............................................................................... 14 

4 KEY TERMS AND DEFINITIONS ....................................................................... 18 

5 REFERENCES ................................................................................................ 20 

6 REVISIONS .................................................................................................. 21 



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1 INTRODUCTION 

This procedure outlines Essential Energy’s requirements for Developers and Service Providers to 

follow, when engaged in the design and construction of Contestable Works with regard to electricity 

transmission, sub transmission and/or distribution network for subdivisions and site developments. 

This document provides both administrative and technical support for level 1 and Level 3 Service 

Providers. 

The purpose of this document is to provide the General Terms and Conditions for the design, 

construction and/or installation of an asset, the ownership of which may on completion be 

transferred to Essential Energy. 

The NSW Electricity Supply Act 1995 allows customers to choose a suitably qualified Service 

Provider to perform work that is deemed to be contestable. Furthermore, Essential Energy through 

the Independent Pricing and Regulatory Tribunal’s determination 5.4, may require a customer to 

contribute towards the cost of extending and/or increasing the capacity of its existing distribution 

system where that is necessary to support the asset being connected. 

The Code of Practice, Contestable Works sets out the guidelines for contestable work in New South 

Wales and defines the obligations of both Essential Energy and the customer. 

Contestability requires Essential Energy to play two roles in the overall process: 

1 It must remain the “regulator” being Essential Energy responsible for the setting of 

standards and ensuring quality control by implementing inspection and auditing procedures. 

The costs associated with Essential Energy performing the “regulatory” role are eligible to 

be recouped through a schedule of monopoly fees as determined by IPART. 

2 Essential Energy may compete for the contestable work subject to appropriate accreditation 

being maintained and effective partitioning of the respective business units ensured. 

Note: It is critical that the proper steps be followed when offering to do work. There is a 

long-term risk to the organisation if the correct procedures are not followed. The legal, 

i.e. non-financial procedures and requirements outlined herein are compulsory for all 

persons/organisations undertaking work where the asset may become the property of 

Essential Energy. 

Accredited Service Providers seeking any form of dispensation to the process outlined in this 

Procedure are required to make written application to the Contractor Accreditation and Auditing 

Manager for approval. Unless written approval is offered the conditions of this procedure 

(CEPG2015) prevail. 



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2 CONTESTABLE WORKS 

2.1 Categories Of Contestable Works 

The following categories of Contestable Work are directly attributed to this procedure: 

Underground Reticulation (URD) 

Essential Energy’s Underground Design Manual – CEM7098 and Underground Construction Manual – 

CEM7199, outline the design and construction requirements for developments adopting underground 

techniques. 

Overhead Reticulation (O/H) 

Construction of or extension to an overhead electricity Distribution System in accordance with 

Essential Energy’s Overhead Design Manual – CEM7097 (Draft) and Overhead Construction Manual – 

CEM7099 (Draft). 

Zone Substation Construction 

Essential Energy’s Procedural Guidelines CEPG8032 – Zone Substation Design Guidelines offers the 

criteria required to enable participation in the specialist area of Zone Substation construction. 

2.2 General Principles 

Contestability allows customers in Essential Energy’s Distribution area to: 

Engage a Level 3 Service Provider to design an EDS. 

Engage a Level 1 Service Provider to construct and/or install an EDS, and 

Supply materials conforming to Essential Energy’s specification to complete these works. 

The customer may contact the Department of Energy, Utilities and Sustainability for the current list 

of Accredited Service Providers or visit their Web site at www.deus.nsw.gov.au. 

The following principles apply to contestable works: 

The customer has the right to choose which Service Provider will undertake the design, 

construction and/or installation of contestable work. 

Only Service Providers appropriately accredited with the Department of Energy, Utilities and 

Sustainability may engage in Contestable Works in New South Wales. 

Essential Energy will provide technical information, design and construction standards for 

contestable work in accordance with the relevant Acts, Regulations and Codes of Practice 

(Note Monopoly Fees apply). 

Essential Energy will obtain the customer’s written consent prior to sharing any sensitive 

information with other parties. 

The Independent Pricing and Regulatory Tribunal (IPART) has determined a fee structure 

allowing Essential Energy to charge for the following services as part of managing 

Contestable Works: 

Design information 

Design certification 

Design re-checking (where applicable) 



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Inspection/Audit 

Re-inspection/Audit 

Access Permit 

Substation Commissioning 

Administration 

Notice of Arrangement and/or Certificate of Acceptance 

Access 

Authorisation 

Site establishment 

The full Pricing Determination is available from the Tribunals Web Site at www.ipart.nsw.gov.au and 

unless IPART advises otherwise the current fee structure will remain effective for the period July 

2004 > June 2008. 

2.3 Legal 

2.3.1 Stakeholder Relationship 

In carrying out the Works, the construction site will be under the control of the customer and the 

customers’ contractors and not under the control of Essential Energy. 

The relationship between Essential Energy and the customer exists solely on the basis that: 

1 Essential Energy owns the existing assets and has been asked to accept a transfer of the 

Contestable Works undertaken, and 

2 Essential Energy is merely specifying the conditions and standards which must exist before 

it will agree to accept a transfer of the Works, and 

3 Essential Energy is not acting as a supervising authority. 

2.3.2 Indemnity 

The customer indemnifies Essential Energy against all claims/liability in respect of the construction 

and existence of the Works and the acts and omissions of the customer, their employees, agents 

and contractors. 

Appropriate liability insurance is a prerequisite for Accreditation with the Department of Energy, 

Utilities and Sustainability. 

2.4 Customer Responsibility 

If proposing to initiate contestable works the customer must arrange the following actions, either 

directly or where technical or administrative expertise is required, through their chosen Service 

Provider acting as their agent: 

Advise Essential Energy of the type, magnitude and timing of any proposed development 

and other relevant information. This will enable Essential Energy to determine design, 

augmentation, construction and/or installation requirements. 

Ensure that only suitably Accredited Service Providers undertake contestable works. 

Provide detailed design plans in accordance with Essential Energy published requirements. 

Comply with the relevant contract, Codes of Practice, Acts and Regulations as to the 

carrying out of the contestable works. Including Essential Energy’s published design and 

construction standards and any project specific request identified at the design information 

stage. 



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Ensure that the works are executed in accordance with the certified designs and that all 

equipment installed meets Essential Energy’s stated standards and specifications. 

Co-operate with Essential Energy in immediately ensuring a Service Provider ceases work if 

the Service Provider fails to carry out the work in accordance with Essential Energy’s 

“Network Management Plan – CEPG8029”. The Network Management Plan is derived from 

the Electricity Supply (Safety and Network Management) Regulation 2002. 

The customer or their agent will be responsible for: 

Co-ordinating all the contestable works including any arrangements associated with works 

performed by Essential Energy. 

All fees applicable to the various stages of the works undertaken. 

Notifying and arranging the testing (including the provision of completed test certificates) 

and inspection of works that Essential Energy require. 

The quality of the contracted Service Provider’s work and for its compliance with Essential 

Energy’s standards and specifications. 

Lodging a surety by way of a Bank Guarantee or direct payment to warrant the works free 

of defects or faults for up to 12 months (Refer 4.10 Warranty). 

2.5 Standards And Specifications 

The customer will ensure that all works are executed in accordance with the certified designs and 

the equipment installed meets the conditions of Essential Energy’s Approved Materials strategy 

(Refer clause 3.6). 

If during the construction period, the customer refuses to comply with directions issued by Essential 

Energy’s Quality Control Co-ordinators with regard to replacement or modification of works that are 

non conformant, Essential Energy may have such works removed, replaced or modified at the 

customer’s expense. 

Before proceeding with certain works and to meet agreed audit milestones, the customer will liaise 

with Essential Energy’s Quality Control Co-ordinator to schedule their presence on site subject to pre 

determined project deadlines. 

A minimum of five (5) working days notice is required for progress audits. 

The customer will be responsible for ensuring that the completed work is tested and test certificates 

provided where required. Refer to Essential Energy’s Work Instruction CEPG4005 – High and Low 

Voltage Underground Cable Testing. 

Note: Essential Energy may seek a presence during these testing procedures 

Where the customer requires Essential Energy to inspect the electricity system outside Essential 

Energy’s normal working hours, the customer will be responsible for all additional costs incurred by 

Essential Energy, including overtime penalties and other costs, associated with attending outside 

normal working hours. 

Where the inspection/audit program identifies a non-conformance, Essential Energy will issue an 

appropriate notice to the Service Provider or customer specifying details of the non-conformance. 

Where the works do not comply with Essential Energy’s Network Management Plan (CEPG8029), 

Essential Energy may instigate the disconnection and/or physical removal of the defective work from 

the transmission/distribution system. 



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If non conformances and/or faults are discovered after the commissioning of the electricity works, a 

non-conformance notice is to be issued to the Service Provider and the conditions of the Warranty 

agreement will prevail. Where fault and/or emergency restoration is actioned by Essential Energy as 

a first response, all associated cost and charges will be passed onto the Service Provider with whom 

the responsibility for the conditions of warranty were established in the first instance. 

Where non-conformances are not rectified within the prescribed period, Essential Energy will carry 

out the repairs and charge the customer, or the cost incurred by Essential Energy to effect repairs 

will be withdrawn from the warranty lodged for the project (Refer clause 4.10). 

2.6 Materials 

Materials used for contestable works must be listed in Essential Energy’s approved materials 

inventory. Where the customer sources materials not listed in the inventory, the item/s must be 

offered to Essential Energy’s standards group for acceptance and/or inclusion onto the current 

listing. 

Refer: CEFD6030 – Approved Materials form (Attachment “J”) 

Submissions to include: 

Quantities 

Specifications of material 

Test certificates 

sample 

The approval process may attract a fee. 

2.7 Environmental Assessment 

Environmental assessment, enhancement and management are vital components to the successful 

design and construction of an EDS. 

The Environmental Planning and Assessment Act 1979 requires Essential Energy to take into account 

to the fullest extent possible, all matters affecting or likely to affect the environment by reason of 

carrying out an activity such as constructing an EDS. 

The designer must be familiar with all aspects of Essential Energy’s procedure CEPG2016 

Environmental Assessment or arrange for the environmental assessment to be undertaken by 

person/s suitably qualified to undertake the assessment (such training/experience depends on the 

level of assessment required). 

The environmental impact assessment form – CEFD6024 is to accompany the construction drawings 

when they are submitted for design certification. CEF6024 is an integral part of CEPG2016 (Refer 

attachment “O”). 

Irrespective of who carried out the environmental assessment, Essential Energy, as proponent and 

determining authority, must ensure that the requirements of the Environmental Planning and 

Assessment Act 1979 and the Electricity Supply Act 1995 are satisfied. The Electricity Supply Act 

1995 imposes Licensing conditions for the Distribution Network Service Provider (DNSP) with regard 

to Demand Side Management therefore, it is imperative that this subject be considered as part of 

the Environmental Assessment. 

2.8 Easements 

Where padmounted substations, underground cables, overhead powerlines, service mains and all 

associated equipment are intended to become part of the EDS and are not established on or over 

public roads or public reserves, Essential Energy requires a registered easement over such land. 



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The customer shall provide the required easements free of any encumbrances at no cost and in 

favour of Essential Energy. The easements will be in accordance with Essential Energy’s document 

CEPG8046 – Easement Requirements and is to be considered in conjunction with CEPG8019 – 

Capital Contributions. 

Where the Developer requires access to any existing easement/s, issued in favour of Essential 

Energy, the Developer or their chosen Service Provider must make contact with Essential Energy for 

approval to carry out the certified work in accordance with the terms of the existing easement and 

any local arrangements between the Developer and the land owner. The Developer and its 

contractors will indemnify Essential Energy for all work carried out in the easement. 

Essential Energy will require the customer to obtain written consent from the Local Council, to locate 

such equipment in the footpath area. 

2.9 Street Lighting 

2.9.1 Public Roadways 

The Roads and Traffic Authority (RTA) and/or Local, City and Regional Councils as members of the 

Local Government and Shires Association of NSW are responsible for the approval, acceptance and 

funding for public lighting in their respective jurisdictions. Note: Appropriate Australian Standards 

apply. 

The customer shall arrange for Essential Energy’s form CEFD6127 – Public Lighting Installation and 

Connection Consent to be completed and signed by the approving authority (RTA, Local, City or 

Regional Council) and attach the completed form with the request for design certification. 

A copy of the application is provided as attachment C. 

2.9.2 Private Roadways/Community Titles 

The installation of lighting along roadways, pathways, reserves and other areas not dedicated to the 

public will be the responsibility of the customer. 

The customer must arrange for the metering and payment of any ongoing electricity and 

maintenance costs. The lighting installation shall be installed by a licensed electrical contractor in 

accordance with AS/NZS3000 the Wiring Rules. 

Essential Energy’s Capital Contributions document – CEPG8019 provides for alternative ownership 

arrangements and specifies the conditions under which such arrangements may be established. 

2.10 Non Electrical Works 

Non-electrical works comprise ancillary activities such as, surveying, tree clearing, excavation, 

restoration, landscaping and any construction that supports the electrical work. 

Non-electrical works are contestable and therefore will be funded by the customer. 

Refer to Essential Energy’s Document CEM7098 – Underground Design Manual for details of non 

electrical works. 



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3 CONTESTABILITY – THE COMPETITIVE PROCESS 

The following section outlines the various stages and their sequence for consideration when 

engaging in Contestable Work/s and attachment “A” to this document offers a flow chart, over 

viewing the process. 

While the level of involvement between projects may vary for the respective stakeholders each 

stage must be considered and where applicable the appropriate forms are to be lodged within the 

prescribed time frames. 

3.1 Customer Enquiry 

The customer or their agent shall make initial contact with Essential Energy’s Planning and Customer 

Connection Manager with regard to the region where the work is contemplated. (refer attachment P 

Regional Map). This contact will firstly establish an awareness of the proposed works for Planning 

staff and secondly ensure the customer liaises with the most appropriate employees (Refer clause 

3.4). 

3.2 Design Information 

Where design information is required, the Level 3 Service Provider will submit to Essential Energy’s 

Planning and Customer Connection Manager a completed form CEFD6010 –Contestable Work Design 

Information Application (Refer attachment B). 

Through lodgement of this form, the Accredited Service Provider will provide sufficient information to 

allow Essential Energy to determine the most appropriate method and location from where supply 

will be taken and offer technical information if/where required. 

Essential Energy may impose site specific conditions on particular projects. Such conditions may 

include but not be limited to nominating live line technics for the commissioning of high voltage 

installations. 

Where an Accredited Service Provider is unable through not having appropriately qualified 

employees and/or specialist equipment to provide the site specific activity, they may engage another 

suitably Accredited Service Provider to complete the task. If Essential Energy was to be the default 

Service Provider, such agreement would need to be negotiated with the Planning and Customer 

Connection Manager as part of the Design Information package. 

Essential Energy’s assets and operational equipment forming part of the proposed works will be 

allocated numbers in accordance with Regional protocols. 

Asset and operational numbers will be offered by the Planning and Customer Connection Manager as 

part of the Design Information Package. 

Essential Energy is committed to providing design information within 14 working days of all the 

required information being submitted however, larger projects may require a longer period. 

Service Providers will be advised if delays are expected to exceed 14 working days. 

The design information offered shall lapse after a period of three months from the date of issue. 

Note: Monopoly Fees apply 



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3.3 Design Submission 

The preparation of construction plans depicting the existing and proposed electricity distribution 

system layout shall be presented in a manner consistent with Essential Energy’s certification 

process. 

It is the Level 3 Service Provider’s responsibility to ensure the conversion process is achievable. 

Should the customer be unable to provide the layout plan in any of the formats nominated, a 

digitising fee at the commercial rate will apply. The customer will be advised if/when this fee is 

required. 

Essential Energy will provide drawing numbers for all drawings being submitted and these numbers 

shall be identified within the drawing sheets and as the electronic file name. 

3.4 Design Certification 

The Level 3 Designer seeking Certification shall lodge completed design material directly to the 

Planning and Customer Connection Manager responsible for the Network area where the 

construction is proposed. 

Essential Energy’s asset and operational numbers for both existing and proposed equipment must 

appear on the plan when submitted for certification. Asset and operational numbers are available 

from the Planning and Customer Connection Manager, subject to the Region where the works are 

contemplated. 

Having considered the design proposal and confirmed acceptance of the design concept, the plan will 

be stamped “Certified” by Essential Energy’s Planning Officer and the construction stage may 

proceed, subject to the Level 1 Service Provider lodging the notification to commence construction 

form – CEFD6012 (Refer attachment E). 

Essential Energy is committed to certify or comment on designs within 14 working days of receiving 

them. However, larger projects may require a longer approval period. 

Service Providers will be advised if delays are expected to exceed 14 working days. 

A design certification fee, payable to Essential Energy and scaled according to the magnitude of the 

development will apply to each proposal submitted. 

Should the design fail to gain certification on the first round, the customer will be notified 

accordingly. When an amended design is resubmitted the monopoly re-checking fee will apply. 

Where an amendment to the original layout occurs after a plan has been certified, the amended 

design shall be lodged with Essential Energy for re-certification and the re-checking fee will apply. 

Design certification shall lapse after 6 months from the date of issue. 

Where design certification has lapsed, the Level 3 Accredited Designer should reconsider the design 

and must resubmit it for certification at which time the monopoly fee structure and response time 

commitments recommence. 

In certifying the design, Essential Energy makes no warranty, express or implied, that the Design is: 

Fit for its intended purpose 

Suitable for the site conditions. 



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The Level 3 Accredited Designer acknowledges that Essential Energy has not inspected the site and 

is therefore unaware of the site conditions. The certification process by Essential Energy is granted 

exclusively on the basis of the submitted design with respect to the construction standards offered 

at the time and has no reference to any underlying assumptions or conditions. 

3.4.1 Requirements for Certification: 

The proposed final plan in digital format for certification. 

Design information. 

Note: Design information to acknowledge any statutory approval/s pending (eg) 

easements, Department of Infrastructure, Planning and Natural Resources (DIPNR) 

Department of Environment and Conservation (DEC), Rail Infrastructure Corporation etc 

Environmental assessment 

The design certification process will identify the Quality Control or Works Co-ordinator responsible 

for the area where the works are to be undertaken establishing a liaison for the Level 1 Service 

Provider/Project Manager. 

Note: Monopoly fees apply. 

3.5 Notification To Commence Construction 

The Level 1 Service Provider will lodge a completed version of Essential Energy’s form CEFD6012 – 

Notification to Start Construction (Attachment E) directly to the Quality Control Co-ordinator 

advising of their presence and that the construction/audit trail has commenced. 

The Quality Control Co-ordinator will then initiate an audit program for the nominated works subject 

to the Service Providers grading with the Department of Energy, Utilities and Sustainability and the 

magnitude of work with respect to monopoly fees. 

3.6 Notice Of Arrangement 

Where the customer wishes to proceed to registration at the Lands Title Office prior to or during the 

construction phase, the customer may apply to the Regional Planning and Customer Connection 

Manager with whom the original construction plans were lodged for the issue of a Notice of 

Arrangement advising the Local Council that satisfactory arrangements are in place for the provision 

of electricity (Monopoly fees apply). 

The issue of the Notice of Arrangement will be subject to the developer satisfying Essential Energy’s 

requirements for project documentation, provision of easements, any other specific conditions and 

either prepayment to Essential Energy or the lodging of a bank guarantee in favour of Essential 

Energy for the full value of work required to make electricity supply available. This value will be 

agreed with the Regional Planning and Customer Connection Manager and may include provision for 

any ancillary works required before the electrical installation can be implemented. 

The bank guarantee will be released by Essential Energy after commissioning and acceptance of the 

electrical works following which normal warranty conditions will apply. 

Note: A Notice of Arrangement will precede, not replace, a Certificate of Acceptance 

3.7 Access Permit/Outage Request 

When the construction phase nears completion and there is a need to connect to, or work on or near 

the existing high voltage network, the Level 1 Service Provider will submit Essential Energy’s form 

CEFD6013 – Notice of Required Outage/Connection to the Quality Control Co-ordinator. This form 



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will then be lodged internally to the department responsible for scheduling the outage and offering 

access as requested. 

Form CEFD6013 is to be adopted whenever work on or near the high voltage network is planned, 

where a particular activity requires the low voltage network to be isolated or as otherwise 

determined by CEPG8030 – Electrical Safety Rules. 

Note 1: 

1 Lodgement of the Notice of Required Outage form – CEFD6013 must precede the preferred 

outage date by a minimum of ten (10) working days. 

2 Essential Energy personnel will advise of any changes to the nominated date/s. 

3 Monopoly fees apply. 

4 A copy of CEFD6013 – Notice of Required Outage is offered as attachment G. 

Note 2: Monopoly fees apply. 

3.8 “As Installed” Plan 

The customer shall be responsible for all “As Installed” details being accurately captured as they 

occur. These details shall be accurately marked up on the “As Installed” drawing and presented to 

Essential Energy on the completion of the works and prior to connection and/or commissioning. 

Such “As Installed” information should comprise accurate details of where poles, streetlights, cables, 

conductors, conduits, pillars/pits etc are actually installed and offer correct labelling of all assets and 

operational devices including the final system configuration. 

All “As Installed” details shall be presented to Essential Energy by electronic copy and in either of 

the formats previously specified in this document at clause 4.3. 

Should the customer be unable to full fill this requirement a digitising fee at the commercial rate will 

apply. 

Essential Energy will advise the customer if this fee is applicable. 

3.9 Completion Notice 

Essential Energy’s Form CEFD6302 – Completion Notice (Attachment H), is to be used by the Level 1 

Service Provider to confirm the project has been completed and the asset is now ready to be 

commissioned and form part of Essential Energy’s Network. 

The document offers a standard proforma covering the various stages of each project and 

establishes a check list for both the Level 1 Service Provider and the Quality Control Co-ordinator to 

verify the construction and documentation stages have been completed. 

Note: The completion Notice will always precede the Certificate of Acceptance 

3.10 Warranty 

The Service Provider is required to warrant the contestable works undertaken. The warranty period 

will commence from when the completed asset is transferred and continue for a period of 12 

months. Where the total value of the contestable works exceeds ten thousand dollars ($10.000), 

the warranty must be either an irrevocable and unconditional bank guarantee from a financial 

institution in a format acceptable to Essential Energy or a cheque payable to Essential Energy for the 

agreed amount. 



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When offered, the bank guarantee or cheque will be retained by Essential Energy pending its 

release, if not utilised either fully or partially under the warranty conditions. 

The dollar value of the warranty is dependent on the Accredited Service Providers grading as 

determined by the Department of Energy, Utilities and Sustainability namely “A”, “B” or “C” grade. 

The following percentages aligned with the respective grading, is used as a multiple of the overall 

project cost to determine a value for the warranty. 

A Grade – 2% 

B Grade – 5% 

C Grade – 10% 

Where the Service Provider elects not to disclose the total value of the project for the purpose of 

establishing the warranty, Essential Energy will nominate a value based on industry pricing 

guidelines from the non-contestable arena. 

Alternatively, the Service Provider may choose to have an ongoing (rolling) $25,000 bank guarantee 

in favour of Essential Energy rather than have a warranty created for each project. 

This form of warranty shall be lodged and registered with the Contractor Accreditation and Auditing 

Manager prior to Essential Energy issuing a ‘Certificate of Acceptance’. 

3.11 Certificate Of Acceptance 

The Certificate of Acceptance signifies Essential Energy’s acceptance of the commissioned works as 

part of their network and that all the conditions of the original agreement/s have been established. 

After the final audit is completed and all Essential Energy’s requirements are met (including 

warranty) the “Certificate of Acceptance” will be forwarded to the customer. 

The customer may present this Notice to the relevant Local Council as evidence that all conditions 

for the supply of electricity to the development have been fulfilled and where required, permit 

release of the linen plan for registration at the Lands Title Office. 

Note: The Monopoly fee “Notice of Arrangement” may apply. 



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ATTACHMENT A – CONTESTABILITY – THE COMPETITIVE PROCESS 

CONTESTABILITY - THE COMPETITIVE PROCESS 

CUSTOMER ENQUIRY 

Directly to Planning & Customer Connection Manager 

(P&CCM's)- Regionally (clause 4.1) 

Design Information Required 

NO 

Planning Officer provides 

design information and 

terms and conditions for 

establishing electricity 

supply 

Request for Design Information (CEF6010) 

Regionally P&CCM's 

Note: Fees Apply (clause 4.2) 

Submit Design (CEF6011) (clause 4.3) 

Public Lighting Installation & 

Connection Consent Form 

(CEF6127) (clause 3.9) 

Design Certification 


Design Certified 

NO 

Revisit design and 

certification process 

- new fees apply 

Passed on to Level 1 Service Provider to construct 

Confirm suitable arrangements 

if augmentation by others is 

required 

Level 1 Service Provider submits 

Notification to Commence Construction 

(CEF6012) and establishes liaison with 

Quality Control Co-ordinator (clause 4.5) 

Notice of Arrangement 

(CEF6016) (clause 4.6) 

Construction proceeds through to 

commissioning 

Lodge Notice of Required Outage/Connection (CEF6013). 

Arrange Access Permit where required 


Connect/Commission EDS after testing 

procedures confirm compliance and test 

results are documented 

Quality Control 

Co-ordinator audits the work, 

receives test results and 

documents 

non-conformances where 

required. Completes Project 

Assessment (CEF6020) using 

Checklist (CEF6015) 

Submit Completion Notice (CEF6302) (clause 4.9) and 

"As Installed Plan" (Clause 4.8) concurrenlty 

Complete all outstanding documentation, confirm warranty (clause 4.10) 

arrangements, release Certificate of Acceptance (CEF6016) (clause 4.11) 

and notify System Control of any alterations to the network 



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All these forms are available on the policy library 

ATTACHMENT B – CONTESTABLE WORK DESIGN INFORMATION 

APPLICATION – CEOF6010 

ATTACHMENT C – PUBLIC LIGHTING INSTALLATION AND CONNECTION 

CONSENT – CEOF6127 

ATTACHMENT D – CONTESTABLE WORK DESIGN SUBMISSION – CEOF6011 

ATTACHMENT E – 

NOTIFICATION TO COMMENCE CONSTRUCTION – CEOF6012 

ATTACHMENT F – NOTICE OF ARRANGEMENT FOR ELECTRICITY SUPPLY TO 

A NEW SUBDIVISION/ALLOTMENT – CEOF6016 

ATTACHMENT G – NOTICE OF REQUIRED OUTAGE/CONNECTION – 

CEOF6013 

ATTACHMENT H – COMPLETION NOTICE – CEOF6032 

ATTACHMENT I – CERTIFICATE OF ACCEPTANCE – CEOF6309 

ATTACHMENT J – APPROVED MATERIALS FORM – CEOF6030 

ATTACHMENT K – HV UNDERGROUND CABLE TEST REPORT – CEOF6022 

ATTACHMENT L – LV UNDERGROUND CABLE TEST REPORT – CEOF6023 

ATTACHMENT M – CONTESTABLE CONSTRUCTION WORKS IN PROGRESS 

FINAL AUDIT CHECKLIST – CEOF6015 

ATTACHMENT N – PROJECT ASSESSMENT LEVEL 1 (NETWORK) SERVICE 

PROVIDER – CEOF6020 

ATTACHMENT O – ENVIRONMENTAL ASSESSMENT – CEOF6024 



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ATTACHMENT P – MAP 

Telephone Contact Numbers for Planning and Customer Connection Managers: 

Central Western Region 02 6338 3697 

Far North Coast Region 02 6643 9153 

Mid North Coast Region 02 6589 8447 

North Western Region 02 6883 4589 

Northern Region 02 6701 7577 

Riverina Region 02 6933 5805 

South Western Region 02 6042 3346 

South Eastern Region 02 6214 9772 



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4 KEY TERMS AND DEFINITIONS 

Access Permits/Substation Commissioning Fees: covers Essential Energy’s costs for the issue 

and administration of access permits and for the commissioning of new distribution substations in 

accordance with the Electricity Supply (Safety and Network Management) Regulation 2002. These 

fees, where applicable, will be payable prior to the issue of the Completion Notice. 

Accredited Service Provider: a company or sole trader having formally established accreditation 

with the Department of Energy, Utilities and Sustainability to engage in contestable work activities in 

NSW. 

Authorisation: is written permission by Essential Energy as the Network Owner, to an individual, 

allowing works “on or near” its transmission and/or distribution system. 

Authority Benefited: means Essential Energy (its successors) and its employees, agents, 

contractors and persons authorised by it. 

Commercial-In-Confidence: this is a general sensitivity label to be applied to information assets 

that are not to be released outside of the organisation, but are freely available to all employees and 

other personnel working directly for Essential Energy. An example of the use of this sensitivity label 

would be its application to the corporate policies, forms, procedures, standards, manuals and 

guidelines to be applied across the organisation. For more information refer to Information Security 

Sensitivity Labelling and Handling CEPG1096 and CEM7063. 

Certificate of Acceptance: written acknowledgment to the customer for presentation to the Local 

Council and/or other interested parties indicating that Essential Energy accepts transfer of the as 

constructed works. Note: Warranty conditions apply at the time of issuing a “Certificate of 

Acceptance”. 

Completion Notice: written acknowledgment by the Service Provider or their authorised 

representative that the works are complete, operational and capable of being used as an electricity 

distribution system (refer attachment H). 

Contestable Works: under the Electricity Supply Act 1995, customers are required to fund certain 

works which are required to enable new or expanded connection to the electricity network. These 

works then become contestable and the customer may choose a service provider to carry out these 

works. Such choice facilitates competition between providers of these services. The areas of work 

deemed to be contestable are set out in the Code of Practice Contestable Works. 

Essential Energy: for the purposes of this document, Essential Energy refers to the network 

owner/administrator as opposed to Essential Energy as an Accredited Service Provider (Contractor). 

Essential Energy Network: the sub transmission and distribution infrastructure for which 

Essential Energy is the Distribution Network Service Provider (DNSP). 

Essential Energy’s Officer: is the authorised representative of Essential Energy responsible for 

the co-ordination, liaison, certification and connection of customer installed electricity distribution 

systems. 

Customer: for the purposes of this document (CEPG2015) customer is defined as the individual or 

entity, presenting to Essential Energy for business dealings related to the connection of an electricity 

distribution system to Essential Energy’s network (Refer clause 3.4). 

Customer Connection Assets: means assets dedicated to the customer at the time of connection, 

up to the nearest point of the network capable of supporting the customer’s load. 

Design Certification: is the process whereby Essential Energy’s Planning and Customer 

Connection Manager accepts the construction plan offered as depicting the proposed construction 

and installation of the electricity distribution system at the site. 

Design Certification Fee: a fee approved by the Independent Pricing and Regulatory Tribunal 

(IPART) to off set the costs to Essential Energy for assessing and certifying plans submitted by Level 



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3 Service Providers’. The Service Provider will be invoiced for the fee, following the certification 

process. 

Design Information Fee: a fee approved by the Independent Pricing and Regulatory Tribunal 

(IPART) to off set the costs to Essential Energy for compiling preliminary information necessary for a 

Level 3 Accredited Designer to prepare an electricity distribution system design in accordance with 

Essential Energy’s Policies and Procedures. The fee will be invoiced to the Level 3 Accredited Service 

Provider on receipt of an “Application for Contestable Work Design Information” (Refer attachment 

“B”). 

Design Re-Checking Fee: a fee approved by the Independent Pricing and Regulatory Tribunal 

(IPART) and applied when a design has been rejected by Essential Energy and is re-submitted for 

certification or when re-certification is required due to design alterations. 

Department of Energy, Utilities and Sustainability: the owner/manager of the process for 

accrediting service providers to undertake contestable works in New South Wales. 

Easement Site: that part of the lot burdened subject to a registered easement. 

Electricity Distribution System (EDS): includes the electrical cables, conductors, poles, 

substations and associated equipment connecting the EDS to Essential Energy’s network. 

Erect: includes construct, repair, replace, maintain, modify, use and remove. 

Independent Pricing and Regulatory Tribunal (IPART): is the NSW Governments endorsed 

Regulator, responsible for determining, from time to time, the application of monopoly fees with 

respect to Contestable Work. The current fee structure is affective July 2004 > June 2008. 

Inspection Fee: a fee approved by the Independent Pricing and Regulatory Tribunal (IPART) to 

offset the cost/s of Essential Energy’s Quality Control Officers inspecting the Service Providers work 

to ensure compliance with Essential Energy’s construction standards. The inspections may be 

conducted during and/or at the completion of construction. The inspection fee is scaled in 

accordance with the Service Provider’s accreditation rating and the magnitude of the works to be 

undertaken. The appropriate fee/s will be invoiced accordingly and Essential Energy’s standard debt 

recovery process will monitor the activity. 

Monopoly Fees: monopoly fees determined by the Independent Pricing and Regulatory Tribunal 

(IPART) and payable to Essential Energy irrespective of the Service Provider engaged by the 

customer to perform the contestable work . Monopoly fees are listed on the Tribunal’s Web site at 

www.ipart.nsw.gov.au 

Near: 

either: 

a person’s body, 

or 

means in proximity to an exposed conductor, where there is a reasonable possibility of 

any object which the person might be carrying or touching during the course of work which is not 

designed for use on live conductors of the same voltage coming closer to the exposed conductor 

than the relevant safe working distances specified in Essential Energy’s document CEPG8030 – 

Electrical Safety Rules. 

Normal Working Hours: between the hours 8.00am > 4.00pm Monday to Friday excluding Public 

Holidays. 

Notice of Arrangement: written acknowledgment to the customer for presentation to the Local 

Council and/or other interested parties indicating that Essential Energy accepts the proposal prior to 

completion. Note: Conditions and securities apply to the issuing of a “Notice of Arrangement” (Refer 

attachment F). 

On: means in contact. 

Owner: means the registered proprietor from time to time of the lot burdened (including those 

claiming under or through the registered proprietor). 



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Padmounted Substation: means a padmounted electricity substation together with any 

underground or overhead electricity cables and any ancillary electrical equipment. 

Point of Supply: the junction of the Electricity Distributor’s conductors with the consumer’s mains. 

Note: point of supply was formerly known as “consumer’s terminals”. 

Residue Lot: means any lot in a subdivision where: 

No structure or building exists; 

Electricity supply is not required, and 

Is capable of further subdivision. 

Shared Assets: means works associated with providing adequate supply to a customer and which, 

at the time of connection, are shared by other customers. 

Warranty: a security deposit held in Essential Energy’s favour pending the expiration of a 

nominated period deeming workmanship and materials offered as fit for purpose. 

Works: means the construction, installation and testing of an EDS at the site and the connection of 

the EDS at the site. 

5 REFERENCES 

CEM7063 – Information Security Sensitivity Labelling and Handling 

CEM7097 – Overhead Design Manual 

CEM7098 – Underground Design Manual 

CEM7099 – Essential Energy’s Overhead Construction Manual 

CEM7199 – Underground Construction Manual 

CEPG1096 – Information Security Sensitivity Labelling and Handling 

CEPG2016 – Environmental Impact Assessment 

CEPG4005 – High And Low Voltage Underground Cable Testing 

CEPG8019 – Essential Energy’s Capital Contribution Policy 

CEPG8020 – Reimbursement Scheme for Rural and Large Load Customers 

CEPG8029 – Network Management Plan 

CEPG8030 – Electrical Safety Rules 

CEPG8032 – Design Guidelines for Transmission and Zone Substations 

CEPG8046 – Easement Requirements 

Accreditation Scheme – Level 1 

Accreditation Scheme – Level 3 

AS/NZS3000 – The Wiring Rules 

Code of Practice Contestable Work 

Electricity Supply (Safety and Network Management) Regulation 2002 

Environmental Planning and Assessment Act 1979 

Independent Pricing and Regulatory Tribunal Determination 5.4 

NSW Electricity Safety Act 1945 

NSW Electricity Supply Act 1995 



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NSW Service and Installation Rules 

6 REVISIONS 

Issue Number Section Details of Changes in this Revision 

2 All Update to new template 

3 All sections Rebranding template 



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CEOP2015 - Essential Energy

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