The Western Australian Government’s new Western Power Fixed Capital Charge (FCC) is now supported by amendments to the Electricity Industry Act 2004 (WA) (EI Act) establishing a Capital Charges Scheme.
The EI Act does not itself impose the $100,000 per MW charge. Instead, it creates the statutory framework for regulations to establish capital charges for access to transmission services of networks that are economically regulated or “covered” under Part 8 of the EI Act, with adjustment mechanisms intended to preserve revenue neutrality over time and regulatory oversight by the Economic Regulation Authority (ERA).
The Department of Energy and Economic Diversification (DEED) is currently consulting on the impacts of connections to existing transmission infrastructure, closing on 7 September 2026.
The FCC replaces the shared network/shared-assets contribution component, and does not of itself address dedicated connection assets, connection point works or other project-specific connection infrastructure costs.
The Fixed Capital Charge is a standardised contribution of $100,000 per MW for new and expanded transmission connections of 10 MW and currently only applies to the Western Power network.
The charge replaces the existing shared-assets component of Western Power’s capital contributions policy for those connections, but it does not replace or cap other connection-related costs, including dedicated or non-shared connection assets, connection point works, applicant-specific facilities and other project-specific infrastructure required to enable the connection.
The statutory basis is the Electricity Industry Amendment (Capital Charges) Act 2026, which inserted Part 9C into the EI Act, establishing a Capital Charges Scheme.
Part 9C empowers regulations to establish capital charges for access to services provided by transmission systems that are regulated under Part 8 of the EI Act, currently Western Power’s network.
The Act requires adjustment mechanisms intended to ensure that, over time, Western Power does not earn more revenue than would have been permitted under the existing Part 8 regulated access framework absent the Capital Charges Scheme. Section 129X of the EI Act also empowers the regulations to prescribe the methodology, duration and administration of that adjustment process, including provisions for record-keeping, payment methods and the role of the Authority in implementing or overseeing the process.
DEED has opened consultation on the impact of the FCC on renewable generation and storage projects seeking new or expanded connections of 10 MW or more to existing SWIS transmission infrastructure. The consultation notice was published on 17 August 2026 and submissions close at 5:00 pm AWST on 7 September 2026. The consultation is directed to whether applying the FCC to projects connecting to existing transmission infrastructure may make otherwise commercially viable projects unviable and invites proponents to provide supporting financial analysis.
The Western Australian Government has moved to implement its fixed capital charge for major transmission-connected customers in the SWIS.
The policy position is that applicants for new or expanded transmission connections of 10 MW or more will generally pay $100,000 per MW towards shared transmission infrastructure costs, with the charge commencing from 1 October 2026. The FCC is not intended to be a complete connection cost or a substitute for all works required to establish the connection.
The reform is directed at a familiar problem in network development: the first project into a constrained area may be asked to fund significant shared network augmentation, even though later projects also benefit from that investment. That allocation (sometimes called “first mover disadvantage”) can produce very high and uncertain connection costs at precisely the point when developers and financiers are trying to settle project economics.
The policy answer is to move away from a highly variable project-specific contribution, for larger connections, towards a known contribution based on contracted capacity. In commercial terms, the reform is less about precision and more about pricing certainty.
The legal implementation is through the Electricity Industry Amendment (Capital Charges) Act 2026. That Act inserted a new Part 9C into the EI Act. Part 9C establishes the Capital Charges Scheme but leaves the operative detail of the charge to regulations and the Electricity Networks Access Code 2004 (ENAC).
The Bill was introduced into the Legislative Assembly on 6 May 2026, passed the Legislative Assembly on 10 June 2026 and was introduced into the Legislative Council on 16 June 2026. It received Royal Assent on 19 August 2026 as the Electricity Industry Amendment (Capital Charges) Act 2026 (No. 12 of 2026). Part 1 commenced on Royal Assent, with Part 2, including the new Part 9C Capital Charges Scheme, commencing on the day after Royal Assent. The companion Electricity Industry Amendment (Capital Charges) Act (No. 2) 2026 (No. 13 of 2026), which inserts the tax imposition provision, also received Royal Assent on 19 August 2026.
The FCC will apply to any person entering into, or modifying, an access agreement where contracted capacity at one or more transmission connection points is 10 MW or more. It captures new and expanded generation, storage and large load connections to the transmission network. Connections below 10 MW remain outside the FCC and continue to be dealt with under Western Power’s existing contributions arrangements.
The FCC is directed at the shared network augmentation or shared-assets component of the contribution framework, not dedicated connection assets, connection point infrastructure, applicant-specific works, metering, protection and communications equipment, easements, land access, approvals, design and engineering work, or other non-shared infrastructure required for a particular project. Those costs may remain payable separately under the access agreement, technical requirements and Western Power’s ordinary connection processes.
For most utility-scale projects, the FCC will be a material component of development capital expenditure. It should be reflected in connection strategy, project modelling, bid pricing, offtake assumptions and funding plans. It also needs to be considered early, because the charge is intended to be payable around the transition from the planning stage to the execution stage of Western Power’s connection process.
The charge is proposed to be payable in full at the conclusion of Western Power’s planning stage and before the execution stage, with an option to split payment over two years. That timing broadly aligns with the existing approach to upfront capital contributions, but proponents should confirm the final position in the applicable regulations, Western Power documentation and access agreement terms.
Accordingly, for budgeting purposes, proponents should treat the FCC as an additional standardised shared-network contribution, over and above any project-specific costs needed to physically connect the facility, unless the final regulations or access agreement terms expressly provide otherwise.
Part 9C of the EI Act establishes a scheme to support connections to transmission systems that are regulated or “covered” under Part 8 of the EI Act (presently only Western Power).
It does this by permitting the imposition of fixed charges for access to services provided by those systems and by ensuring that, over a specified period, network service providers do not earn more revenue than would have been permitted under Part 8 if the Capital Charges Scheme had not been introduced.
The Act does not itself impose a direct $100,000 per MW financial obligation on applicants. Instead, Part 9C empowers the making of regulations, instruments and to amend the ENAC to establish the FCC and related adjustments.
The ERA has now finalised its framework and approach for Western Power’s sixth access arrangement period, AA6, covering the 2027–2032 regulatory period. The final AA6 framework and approach decision is relevant context, but it does not itself impose the FCC or finally determine how FCC receipts will be treated.
In fact, in that final decision, the ERA sought Western Power’s explanation on how the FCC would be incorporated into its contributions policy.
That treatment will need to be addressed through whatever arrangements are established under Part 9C.
However, the framework does not permit a project by project reconciliation or true-up against the actual cost of network augmentation for a particular connection.
On that basis, a proponent connecting in an area with significant existing capacity may pay more than the incremental network cost it creates, while a proponent connecting in a constrained area may pay materially less than the augmentation cost needed to facilitate connection.
That appears to be a feature of the regime rather than an accident. The regime prioritises certainty, administrability and investment facilitation over strict cost reflectivity. Whether that trade-off is acceptable will depend heavily on the circumstances of each project and the extent to which the broader regulatory framework avoids over-recovery.
The FCC is a statutory capital charges scheme for major connections addressing shared network augmentation and shared-assets contribution costs, layered over the existing regulated access framework and trading pragmatic cost-certainty for project-specific “causer pays” accuracy.
The success of the regime will depend on the content of the regulations, the way the adjustment mechanism is reflected in regulatory revenue and asset base treatment, transparency in ERA oversight and care in transitional arrangements.
For developers, the FCC should now be treated as a core connection project cost.
It is, however, only one part of the connection cost stack. Project-specific connection infrastructure and other non-shared works still need to be priced and negotiated separately.