CODE OF PRACTICE
Electricity Service Standards
Revised August 2015
Contents
1. Preface ................................................................................................................................... 1
Format ..................................................................................................................................... 1
2. Application and Objectives................................................................................................... 2
3. Service Standards ............................................................................................................... 3
3.1 General .......................................................................................................................... 3
3.2 Particular ........................................................................................................................ 3
4. References .......................................................................................................................... 8
1. Preface
This Code of Practice provides a framework for supplying defined distribution and retail services
to consumers in a deregulated marketplace. The Code’s existence derives from the Electricity
Supply Act and guidelines issued by the Department of Industry Division of Resources & Energy
(DRE).
This Code is a minor revision by the Department of Industry Division of Resources & Energy of
the earlier Code prepared for the former Electricity Association of New South Wales by a
working group with representatives from:
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The University of Wollongong;
AGL;
Energy Australia;
NorthPower;
Integral Energy;
Advance Energy;
Great Southern Energy, and
W D Nichols Professional Electrical Consulting Pty Ltd.
This Code of Practice has been prepared bearing in mind the need to observe the principles of
the Distribution Risk Management Code of Practice.
Format
The document provides licence holders with the Code’s required practices in plain type with bold
headings. Background discussion of the issues is provided in the body of the document in italics.
For further information or comments on the provisions of this Code contact the local electricity
distributor.
1 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
2. Application and Objectives
This code is intended for use by licence holders in the preparation of plans, reporting against
those plans, advising customers of service standards and the publishing of annual reports in
respect of the provision of cost effective services to their customers. It is envisaged that licence
holders will prepare two versions of their publications, one directed at residential customers and
one directed at commercial and industrial customers.
The Code of Practice has been prescribed to specify a minimum set of standard measures
against which the features of electricity supply connection and supply services can be judged by
customers. The code is to be used by licence holders in producing their own publications, plans
and reports which customers may use in their comparison of standards offered.
The Code of Practice has been produced by various interests both within and without the
businesses operated by licence holders. It comprises a set of technical and administrative
services which will be of interest to various customer groups and therefore to licence holders.
These services and those associated with retail supply may also be considered in consumer
protection arrangements being considered by the Government.
Some services provided historically do not bear on future relationships between distributors,
retail suppliers and IPART, meaning the remedy of a customer’s complaint may more
appropriately be dealt with by the Office of Fair Trading. Nevertheless, such topics remain in the
code to assist service providers generate a specification in as wide a field as possible and so
assist customers in making their choices.
It will be noted that the services listed will be provided by different divisions within the overall
business structure. There has been no differentiation made in this Code, as the business failure
of a retail supplier will see the distributor involved in the transaction and assume the role of defacto retail supplier until the electricity customer has made other supply arrangements.
Consequently, all distributors will need to have in place a complete retail supply service plan,
including published retail service standards.
2 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
3. Service Standards
3.1 General
As a condition of maintaining their NSW trading licences, both Retail Suppliers and Electricity
Distributors are required to submit plans to the Minister for Energy for setting, achieving and
reviewing cost effective standards, including measurable targets, in several important areas of
their business operations. This is a Ministerial requirement, as is the requirement of Licence
Holders to prepare and publish annual reports of performance in meeting those standards.
These annual reports will be considered by the Licence Compliance Advisory Board in
determining whether or not licence conditions have been complied with by Licence Holders.
One of the minimum obligations imposed by the Electricity Supply Act is a requirement that
licence holders address the standard of service to be provided. Specifically, the standards must
provide for service quality, reliability and responsiveness, all at levels which represent for the
stakeholders, value for money and cost effectiveness. Government policy intent is that
consultation occur with the end users, so that the services to be provided match users’
requirements and their preparedness to meet the price. Of particular relevance to licence
holders is the fact that the overall process will be supportive of securing agreement by IPART
that the prices sought by licence holders for their services are justified.
Once service standards have been determined, it remains for customers to be informed of their
technical features so that they can compare service standards for different market segments and
suppliers. Thus there is a requirement that licence holders publicise their service standards, so
creating rights and promoting choice for customers in determining their preferred service
provider.
At the same time, it is considered reasonable that the published information should include
mention that some services, such as electricity supply quality can be degraded by actions within
customers’ own installations and that such degradation may not be allowed to interfere with
either the power system or adjacent customers.
In order to avoid conflict on standards, licence holders should include in their published
information, methods of test and measurement of service levels.
3.2 Particular
The following topics are considered necessary content for licence plans, publicity, performance
measurement and reporting. Many of them are self explanatory.
3.2.1 Services Associated with Retail Supply
The following services are more commonly associated with retail suppliers and are the subject of
another Code, the Customer Charter Code being prepared by a working group convened by the
Office of Fair Trading. Consequently they are not dealt with in this Code other than receiving
mention, however, as is pointed out above, a supplier of last resort will be required to offer the
whole range of services.
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New Connection and Reconnection Times, Business and Residential
Meeting appointments on time
Answering telephone enquiries
Response time for complaints
Response time for attendance to no supply and emergency/hazard calls
Meter accuracy
Meter reading services, routine and final/disconnection
Options for electricity accounts
Dispute resolution
3 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
3.2.2 Services Related to Distribution
In the area of supply quality, alleviation of some of the possible problems is dependent upon the
degree to which system impedance at various frequencies can be reduced. In order to avoid
inordinate investment levels, customer consultation and education are needed to bring about a
coincidence between service standards and customers’ preparedness to meet the price.
Where reliability criteria are involved, once again heavy investment is the most likely
consequence of dramatically improved performance and the above strategy would seem to offer
a middle ground direction.
To the extent that their products be fit for the purpose for which they were purchased, it would
seem to be incumbent upon each licence holder to agree with its customers a level of risk for
which they are prepared to pay and to fully describe the products it then offers. The following
material identifies those features of electricity which render its quality control difficult, with the
intent of assisting licence holders reach agreement with their customers on levels of fitness and
overall quality of the services to be offered.
Publications intended to inform customers on these matters should also point out that electrical
and geographic locations will influence service standards. In addition, they should specify that it
will be necessary to restrict certain activities intended by customers to avoid interference to other
customers.
3.2.2.1 Frequency of Supply
A licence holder shall specify the range of power system frequency that characterises the
electricity supply.
Despite the fact that electricity distributors have little control over power system frequency, the
vast majority of customers needing information will contact the distributor on the matter.
Accordingly, the expected range of frequency variation should be specified for normal operating
conditions. For system abnormalities recovery time should be provided. Licence holders may
wish to provide information on making good any deficiency in the number of cycles generated
and the effect this has in maintaining the accuracy of some electric clocks.
3.2.2.2 Range of Supply Voltage
A licence holder shall specify the range of voltage variations for all classes of customer that
characterise the electricity supply at the point of supply under normal system operating
conditions.
The range of voltage variation under normal power system operating conditions including
variations due to voltage regulation equipment should be indicated for both low and high voltage
customers, together with the expected range under system abnormalities.
In respect of low voltage customers, licence holders may well be advised to point out that
Australian compliance with European standards over the next few years will result in the
standard voltage being reduced from 240 to 230 volts and that a review of the operating range
will be required at that time.
3.2.2.3 Limits Of Voltage Fluctuations to be Expected - Rapid Variations
A licence holder shall specify the range of rapid voltage variations that characterise the
electricity supply at the point of supply.
Rapid variations in supply voltage and the fact that they are caused by the operation typically of
customer owned equipment such as motors, welders, furnaces and x-ray machines should be
specified. The extent to which their magnitude can be and needs to be limited by licence holders
through connection contract arrangements should also be specified. Reference may be made to
the relevant Australian standards.
4 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
3.2.2.4 Switching Transients
Licence holders shall specify the magnitude of transients likely to be experienced due to normal
power system operations such as switching.
System switching can cause transient voltage excursions which should be made known to
customers so that arrangements can be made for alleviation of the effects where necessary.
3.2.2.5 Voltage Dips
Licence holders shall specify the duration, magnitude and frequency of voltage dips that
customers can experience with their electricity supply due to normal power system operation.
The fact that voltage dips due to faults and the connection of heavy loads are features of power
systems should be advised, together with their likely value.
3.2.2.6 Voltages Differences Neutral to Earth
Licence holders shall specify steady state, temporary and transient voltage differences between
neutral and earth that electricity customers can experience at the point of supply.
Steady state, temporary and transient levels of voltage rises above earth potential that can be
expected in service should be specified so that customers intending to use equipment
susceptible to such conditions can take precautions to avoid problems. Some electronic
equipment is unable to continue normal operations if the potential difference between neutral
and earth exceeds only a few volts.
3.2.2.7 Lightning
The corporate position adopted by a licence holder towards lightning and lightning induced
damage shall be expressed in published service standards.
3.2.2.8 Step and Touch Potentials
Licence holders shall specify the value of step and touch potential rises likely to arise in
populated areas.
3.2.2.9 Unbalance
Licence holders shall specify the limits of voltage unbalance that may be experienced by
customers at the point of supply.
The limits of possible voltage unbalance require inclusion in a detailed service standards list so
that machinery whose rating is affected may be safeguarded.
3.2.2.10 Direct Current
Licence holders shall specify the magnitude of direct currents which may be both produced and
experienced by customers.
3.2.2.11 Harmonic Content of Voltage Waveform
Licence holders shall specify the level of harmonic voltages that customers can expect at their
point of supply.
The preparedness of a licence holder to limit the production of harmonic voltages by customers
and the size of those limits should be included. This should include any transient ringing
produced by switching power factor correction capacitors fitted with mains signalling rejector
filters. The position of the distributor in relation to harmonics produced by capacitors operated by
power system owners needs to be explained. Licence holders will need to be aware of progress
with future revisions to AS2279 Part 2 and with IEC Technical Publication 1000/3/6, which may
be used as guides.
3.2.2.12 Harmonic Content of Current Waveform
5 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
Licence holders shall specify the level of harmonics that customers may generate at their point
of supply.
The preparedness of a licence holder to limit the production of harmonic currents by customers
and the size of those limits should be included in published service standards.
3.2.2.13 Interharmonics
Licence holders shall specify the level of inter-harmonics that customers can expect at their point
of supply.
Only certain non linear loads produce interharmonics; however their effects can be so
problematic that customers should be apprised of limits allowed to be generated.
3.2.2.14 Mains Signalling
Licence holders shall specify the level and frequency of mains signalling voltages expected at
the point of supply.
The magnitude and frequencies of mains signalling voltages should be laid down, indicating
preparedness by a licence holder to meet minimum levels for effectiveness and to limit high
levels which may arise due to resonances.
3.2.2.15 Mains Signalling Reliability
Licence holders shall specify the reliability of their mains signalling systems.
The reliance by customers on controlled loads such as water heaters and street lights indicates
that licence holders should specify the reliability of their mains signalling systems.
3.2.2.16 Noise
Licence holders shall give undertakings to their limiting the production of audible and electronic
noise generated by the power system.
Power system components can cause audible and electronic noise and this should be the
subject of undertakings by licence holders.
3.2.2.17 Notching
Licence holders shall specify maximum limits of disturbances caused by notching equipment.
To the extent that the high frequencies produced by notching and other wave chopping can
degrade insulation and interfere with digital electronic devices, some level of limits imposed on
customers operating notching equipment and on limits expected to be experienced by others
needs to be included.
3.2.2.18 Notification of Planned Interruptions to Supply
Licence holders shall give undertakings relating to timeliness of advice for planned interruptions
to supply.
Performance specification relating to timeliness of notification prior to planned outages will be of
value to customers and should be included. It will be noted that this is in any case a requirement
of connection contracts.
3.2.2.19 Supply Reliability, Number of Outages
Licence holders shall specify the number, duration and restoration time for planned and
unplanned outages that customers in various parts of the power system can expect.
Targets for the number, duration and restoration time should be included for the range of
electrical and geographic features of the licence holder’s franchise. Compliance with switching
times as notified for planned interruptions should also be specified.
3.2.2.20 Construction Standards
6 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
Licence holders shall publish their agreed construction standards.
Licence holders should publish their agreed construction standards reflecting agreements
reached with interest groups as to their agreement to meet the costs of the resultant service
levels.
3.2.2.21 Levels of Supply Availability
The number of phases and system capacity available to existing and prospective customers
shall be the subject of discussion in published service level standards.
It is commonplace for prospective customers to expect a greater level of supply than can be
provided, especially in rural areas. Although the effectiveness of publicity can never be assured,
licence holders should publish in their service standards the fact of limitations in some areas.
3.2.2.22 Levels of Electromagnetic Fields
Licence holders shall specify the extent to which their assets produce electromagnetic fields and
their compliance with international guidelines.
It is considered prudent for licence holders to publish the extent to which their assets produce
electromagnetic fields and their compliance with international guidelines.
7 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015
4. References
European Standard for Electricity as a Product, EN 50160.
Supply Quality, a Guide for Commerce and Industry. HEC.
Code of Practice for Electricity supply Quality and Reliability. OOE WA.
Quality of Electricity Supply Parts 1 & 2 Western Power.
Australian Standard AS 2279, Parts 1 - 4.
IEC Technical Report 1000/3/6 Assessment of Emission Limits for Distorting Loads in MV and
HV Power Systems.
8 NSW Department of Industry, Code of Practice - Electricity Service Standards
Original Issue date: February 1998, Revised date: August 2015