The contract stage

VicGrid connections prepares an offer to connect once the application stage is complete.

The offer to connect consists of several contracts in executable form, such as the use of system agreement, the network services agreement and the project construction and coordination deed.

You can view templates of the various contracts below.

The number of contracts, form, and the time taken to execute will vary depending on:

  • project size
  • plant type
  • DSN augmentation requirement
  • contestability of the proposed augmentation.

For projects that don't require DSN augmentation, we will usually execute two contracts (see Figure 1):

  • UoSA (Applicant)
  • NSA (incumbent Declared Transmission System Operator (DTSO).

Contracts for a project that doesn’t require augmentation
Figure 1: Contracts for a project that doesn’t require augmentation

A use of system agreement is put in place between VicGrid and the applicant, and a network services agreement between the applicant and incumbent DTSO.

Download figure 1

For projects that require augmentation to the DSN and consist of contestable and non-contestable works, for example interface and other minor and non-separable works, there are 2 alternative ways to develop the required augmentation:

  1. The connection applicant nominates a DTSO to build, own, and operate the augmentation, and we procure shared network services from the nominated DTSO. You conduct an Invitation to Tender (ITT) for the contestable portion of the augmentation under clause 8.11.8 of the NER, or
  2. Upon your request we can conduct an Invitation to Tender (ITT) to build, own, and operate the contestable and non-contestable portions of the works under clause 8.11.7 of the National Electricity Rules (NER)

VicGrid Connections determines whether the augmentation is contestable or non-contestable.

Figure 2 shows the contract structure for a contestable and non-contestable project dependant on the parties who will build, own, and operate the augmentation.

Contracts structure for a contestable project requiring augmentation
Figure 2: Contracts structure for a contestable project requiring augmentation

A network services agreement (contestable) is between VicGrid and the selected DTSO.

A network services agreement (non-contestable) is between VicGrid and the incumbent DTSO.

A project construction coordination deed (including construction and augmentation connection provision) is between VicGrid, the applicant, the incumbent DTSO and selected DTSO.

A use of system agreement is between VicGrid and the applicant.

A connection services agreement and lease are both between the applicant and selected DTSO.

Download figure 2

Figure 3 shows the contract structure for non-contestable DSN augmentation, where the incumbent DTSO will build, own and operate the augmentation.

Contracts for a non-contestable project requiring augmentation – incumbent DTSO builds, owns and operates the augmentation (Lease and Easements required if assets are to be situated on land not owned by the DTSO)
Figure 3: Contracts for a non-contestable project requiring augmentation – incumbent DTSO builds, owns and operates the augmentation (Lease & Easements required if assets are to be situated on land not owned by the DTSO).

A use of system agreement is between VicGrid and the applicant, and a connection agreement between the applicant and incumbent DTSO.

If required, lease and easements are between the applicant and incumbent DTSO.

A network services agreement is between VicGrid and the incumbent DTSO.

Download figure 3

Related policies

Next stage

Page last updated: 06/11/25