The ACCC is continuing its work on Directlink’s application for conversion from a market network service to a prescribed service and a maximum allowable revenue for 2005–2015.
PB associates and IES were engaged by the ACCC to assist in the review of Directlink’s application. Their reports are available from the ACCC website. The ACCC is currently seeking comments on the IES report.
On 29 April 2005 the ACCC released its revenue cap decisions for TransGrid and EnergyAustralia for the 2004–09 regulatory period. Both TransGrid and EnergyAustralia made applications to the ACCC for a revenue cap in late 2003. In late 2004 TransGrid and EnergyAustralia submitted supplementary applications covering their future capital expenditure requirements in response to changes to the ACCC’s capital expenditure framework.
The ACCC’s decisions were based on recommendations made by PB Associates, GHD and Mountain Associates. In addition to these consultants’ reports, the ACCC considered the information provided by TransGrid and EnergyAustralia and submissions made by interested parties.
EnergyAustralia’s and TransGrid’s applications, consultants’ reports, submissions and the decisions are available on the ACCC website.
On 8 April 2005 the ACCC released its annual electricity regulatory report covering the financial performance of transmission network service providers (TNSPs) in the National Electricity Market. The report details the performance of ElectraNet, Powerlink, SPI PowerNet, Transend, TransGrid and VENCorp for 2003–04. The report is available on the ACCC website.
The report is prepared using information that the TNSPs provide to the ACCC annually. The ACCC believes the information should be published for the public benefit as it will increase transparency about the TNSPs’ performance. This is the second annual report and the benefits of having a continuous data set available from which to draw performance trends are already identifiable.
The report focuses on the revenue and expenditure performance of the networks. Information is presented on the TNSPs’ profitability and investment outcomes, comparing actual capital and operating and maintenance expenditure with the forecasts contained in the original revenue cap decisions. Ongoing reporting will assist the ACCC in identifying any areas of divergence between forecast and actual figures and determining the reasons for these differences.
On 8 February 2005 the ACCC received applications for authorisation (Nos A40097–99) of amendments to the code. The applications were submitted by NECA.
The proposed derogation is designed to deal with a significant transmission constraint experienced between Murray and Tumut in the Snowy region. The proposal is for a simplified application of the constraint support pricing (CSP)/constraint support contracts (CSC) regime developed by Charles Rivers Associates (Asia Pacific) Pty Ltd (CRA).
NECA noted that the derogation tries to improve the pricing signal through providing a pseudo regional boundary between the Tumut and Murray nodes at times when congestion occurs on the Murray-Tumut transmission lines. This is coupled with a CSC allocation to Snowy Hydro Limited (Snowy Hydro) of 0MW for northward constraints and 550MW for southward constraints. The derogation is proposed to apply until 31 July 2007 at the latest.
On 15 April 2005 the ACCC released its draft determination proposing to grant authorisation to proposed amendments to part 8 of chapter 8 of the code. The ACCC noted that the proposed arrangement will, on balance, produce net public benefits. In particular, that the derogation should provide incentives for more efficient dispatch of generation into New South Wales at certain times, and increase the firmness of settlement residues on the NSW to Snowy when flows are in a southward direction.
On 3 March 2005 the ACCC received applications for authorisation (Nos A90955–57) of amendments to the electricity code. The applications were submitted by the National Electricity Code Administrator (NECA).
The proposed code changes relate to clauses 3.12.1(a), 3.12.1(b) and derogations (chapter 8) part 7 section 2 and section 3. These amendments will allow the National Electricity Market Management Company (NEMMCO) to enter reserve contracts for a further 12 months until 1 July 2006.
On 27 April 2005 the ACCC granted authorisation to the proposed code changes. A copy of the determination is available on the ACCC website.
On 4 March 2005 the ACCC received applications for authorisation of amendments to the code (Nos A90958–60). The amendments are intended to standardise B2B governance arrangements for communications between distribution and retail companies operating in the National Electricity Market. The applications were submitted by NECA on behalf of NEMMCO and NECA has subsequently requested an interim authorisation for the code changes.
On 13 April 2005 the ACCC granted interim authorisation to the applications. The ACCC expects to release a draft determination in May 2005.
On 18 March 2005 the ACCC received applications for authorisation (Nos A40100–02) of amendments to the code. The applications were submitted by NECA on behalf of the Australian Capital Territory Chief Minister’s Department.
The purpose of the applications for authorisation is to seek amendments to the ACT’s derogations from chapter 7 of the code. The effect of the authorisation is that distribution businesses will continue to have exclusive responsibility for providing metering services to all small customers using types 5-7 metering installations until 31 December 2006.
The ACCC expects to release a draft determination in May 2005.
On 18 March 2005 the ACCC received applications for authorisation (Nos A40103, A40104 and A40105) of amendments to the code. These applications were lodged by NECA on behalf of the South Australian Government.
The applications seek to amend clause 9.30.1 of South Australia’s current metering derogations from chapter 7 of the code. The South Australian derogations make distributors exclusively responsible for metering installation types 5 (interval meters) and 6 (accumulation meters) for small customers and 7 (unmetered supply) for a transitional period until 1 July 2005. The derogations also specify arrangements for payment of distributors’ metering costs during this transitional period.
The applications seek to extend the duration of the derogations to 31 December 2006. The applications also seek to amend clause 9.30.1 to align it with the ACCC’s recent final determinations in relation to similar New South Wales and Victorian metering derogations. That is, the proposed derogation amendments will ensure that retailers may elect to be responsible for the provision, installation and maintenance of remotely read type 5 meters.
The ACCC expects to release a draft determination in May 2005.
On 27 April 2005 the ACCC granted a request by Epic Energy South Australia Pty Ltd to extend the lodgement date for its revised access arrangement from 1 July to 1 October 2005 under section 7.19 of the National Third Party Access Code for Natural Gas Pipeline Systems.
Epic Energy applied to the National Competition Council (NCC) on 15 March 2005 for revocation of the MAPS as a covered pipeline. It submitted to the ACCC that an extension of time could help limit the resources spent on the revisions as it would not need to prepare and lodge the revisions if its revocation application was successful, and undertook to commence the work required to prepare the revisions to the access arrangement if the NCC makes a final recommendation to the minister not to revoke coverage.
On 27 April 2005 the ACCC decided, under section 7.19 of the code, to grant the requested extension until 1 October 2005. The existing terms of the access arrangement will continue if the revisions approval process is not completed by January 2006.
