19Amount of developer charges

19 Amount of developer charges

(1)  The amount of a developer charge to be imposed by a regulated entity in respect of a property to which a proposed new development relates is to be sufficient to, but no higher than is necessary to, recoup the reasonable costs incurred by the entity in respect of the proposed new development.

(2)  For the purposes of subregulation (1) , the reasonable costs incurred by a regulated entity in respect of a proposed new development –

(a) are those costs directly attributable to installing, altering, or utilising assets, in a reasonably cost-efficient manner, so as to be able to provide a regulated service in respect of the proposed new development; and

(b) may reflect variations in the costs of servicing different locations or regions; and

(c) may include an excess capacity cost; and

(d) are not to include an amount attributable to increased external demand by existing customers.

(3)  For the purposes of subregulation (2)(c) , an excess capacity cost is an amount that is –

(a) attributable to –

(i) the cost of installing, before the proposed new development came into existence, assets which had an excess capacity such that regulated services are able to be provided in respect of the new development without altering the assets; and

(ii) the cost of altering or utilising assets that were installed before the proposed new development came into existence so that regulated services are able to be provided in respect of the new development without installing new assets; and

(b) proportional to the amount of that excess capacity that is to be utilised in providing the regulated services in respect of that new development.

(4)  For the purposes of subregulation (2)(d) , an amount is attributable to increased external demand by existing customers if it is attributable to installing, altering, or utilising assets so as to meet increased demand, for the regulated service, that is –