(3.2) Equity Between New and Existing Users

Where a network development is undertaken to service a new user it is rare that existing network users do not derive some benefit. In these rare circumstances the calculation of connection charges is relatively straightforward since the new user will be asked to meet all the shallow or semi-deep connection costs as appropriate. Such costs are calculated using the standard method and worksheets appearing in Appendix 2.

The calculation becomes more difficult, however, when it is apparent that existing users will derive benefit from the new installation. Given that the whole of the conveyance network comprises underground cabling and ground mounted plant, if costly and disruptive road works are to be avoided, it is appropriate for the network operator to use the opportunities provided by new user connections to enhance the network as may be prudent.

From the 1st January 2002, the Public Thoroughfares Committee's Code of Practice on excavations in the highway provides for a three-year period after resurfacing where only emergency works will be permitted. Such restrictions make it even more important that available opportunities to reinforce the conveyance network are used where appropriate.

Given that such works are undertaken for the benefit of all users then it is clearly inequitable if only the new user should be required to pay for them. In such circumstances it is inevitable that a judgement must be made as to what proportion of any development should be chargeable to the new user. Whilst it is not possible to make any judgement beyond dispute it is possible to establish a process to make the reasoning behind any judgement as clear as possible.

Historically GE has adopted the following process:

1. I. A minimum installation to service the needs of the new user has been designed and costed. The minimum installation will include "semi-deep" network costs when the installation is being costed by this method.
2. II. The design is enhanced as necessary to meet the expected needs of other network users in the area. Such enhancements may include the replacements of life expired plant or cabling.
3. III. Additional plant, cabling or ducts may be specified where a further new user may be reasonable anticipated.

The charge to the new user initiating the development has been only that of the minimum installation.

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