Powerlink is a Queensland Government owned corporation that owns, develops, operates and maintains the high voltage electricity transmission network in Queensland. The ACCC made a revenue cap decision for Powerlink on 1 November 2001. The revenue cap covers a period of five and a half years (i.e. 1 January 2002 to 30 June 2007) and establishes the revenues that Powerlink is permitted to recover from its transmission customers over this period.
The AER has now been given responsibility for economic regulation of transmission companies in the National Electricity Market. The AER will therefore be responsible for setting Powerlink's next revenue cap, which will cover the five-year period 1 July 2007 to 30 June 2012. The AER has begun discussions with Powerlink in the lead up to its revenue cap application, due on 1 April 2006. The AER plans to consult with stakeholders early in the process and seek submissions from them at key stages.
Central Ranges pipeline—draft decision
On 27 October 2005 the ACCC issued its draft decision on the access arrangement proposed by Central Ranges Pipeline Ltd for its planned transmission pipeline in the Central Ranges of NSW. The pipeline will initially extend from Dubbo to Tamworth in NSW.
The ACCC is currently the regulator of the Central Ranges transmission pipeline under the national gas code. However, it is intended that this function will pass to the AER. In making this draft decision, the ACCC has been assisted by advice from the AER.
The ACCC had earlier approved a competitive tender process for the pipeline which established key provisions, including the reference tariffs that may be charged until 2019.
The proposed transmission access arrangement incorporates the outcomes of the tender and contains the other elements required by the gas code. However, there are some areas where the proposed access arrangement fails to do this and the ACCC proposes several amendments.
On 30 October 2005 the ACCC met with interested parties in Tamworth to discuss the draft decision and any concerns interested parties may have.A similar meeting in Mudgee is planned for 1 November 2005.
Submissions from interested parties on the draft decision close 18 November 2005.
On 5 October 2005 Optus Networks Pty Limited notified the ACCC of an access dispute with Telstra Corporation Limited, under Part XIC of the Trade Practices Act.
The access dispute relates to the connection, monthly rental and other charges for the supply of the Unconditioned Local Loop Service (ULLS)* from Telstra to Optus. The ACCC has begun the arbitration process for this access dispute.
Given that the legislation contemplates that arbitrations be conducted in private, the ACCC will not be making any public comment at this stage.
The ULLS uses unconditioned cable, primarily copper pairs, between end users and a telephone exchange where the unconditioned cable terminates. The declared ULLS is being used by access seekers to support and connect to their own infrastructure for the supply of new and innovative voice and data services, such as those using voice over internet protocol (voIP) and digital subscriber line (DSL) technologies.
The ACCC is vested with arbitration powers enabling it to make directions and ‘do all things necessary for the speedy hearing and determination of an access dispute’. For the ACCC to engage in arbitration, an access seeker and/or an access provider must notify the ACCC of an access dispute. The ACCC may arbitrate an access dispute only if:
a declared service is supplied or proposed to be supplied by a carrier or carriage service provider
one or more standard access obligations apply or will apply to the carrier or carriage provider in relation to the declared service
an access seeker is unable to agree with the carrier or carriage service provider regarding the terms and conditions on which the carrier or carriage service provider is to comply with the standard access obligations.
When a dispute cannot be resolved after private negotiations, mediation and/or conciliation, either of the access parties may refer the matter to the ACCC. Arbitration by the ACCC would be considered as a final solution for the parties in dispute. When the ACCC is notified of an access dispute it must determine the matter, unless it decides to terminate the arbitration or the notification is otherwise withdrawn.
Under the Trade Practices Act the ACCC may make an interim determination in a dispute before making a final determination. The interim determinations set out the charges to be paid by the access seekers to Vodafone for the supply of the MTAS, except when agreed otherwise by the parties. The statements of reasons set out the ACCC's reasons for the interim determinations.
The interim determinations were made in July and August of this year. The interim determinations are in effect for 12 months or until a final determination comes into effect or the interim determination is revoked. The ACCC consulted with the parties on publication of the interim determinations.
The ACCC has considered the parties' submissions and, except for information considered commercial-in-confidence, the interim determinations and statements of reasons are published in full. Given that the legislation contemplates that arbitrations be otherwise conducted in private, the ACCC will not be making any further public comment at this stage.
The Domestic MTAS is a wholesale input, used by providers of fixed-to-mobile and mobile-to-mobile calls, to allow their customers to call mobile phone users. It allows consumers (either fixed-line or mobile) to call mobile users connected to another network. The carrier whose customer initiates the call pays the carrier whose customer receives the call for the MTAS.
The disputes relate to the charges, and other terms and conditions, for carrying that portion of a call which terminates on Vodafone's mobile network.
ACCC issues Telstra accounting separation report for June quarter 2005
On 6 October 2005 the ACCC issued its eighth imputation testing and non-price terms and conditions report under the enhanced accounting separation regime for Telstra. The report presents data for the quarter ending 30 June 2005, including key performance indicators that compare aspects of Telstra's customer support services when supplied to wholesale and retail customers.
ADSL-related performance indicators are being reported for the first time, besides basic access performance indicators.
The report also presents an imputation analysis that compares Telstra's retail prices to the prices of three core* telecommunications access services. The analysis aims to show if the margins between Telstra's retail prices and the prices it charges other service providers to use the core services (plus related costs) are big enough to allow efficient firms to compete at the retail level.
The results for fixed line voice services show that there were sufficient margins for domestic and international long-distance calls and fixed-to-mobile calls, but not for local call services (line rental and local calls combined).
The results for services supplied over the unconditioned local loop core service (ULLS) show that there were negative margins when supplying residential customers, but slightly positive margins when using the ULLS to supply ADSL and four voice services to business customers.
On the whole, there was little change in the key performance indicators and imputed margins during the June quarter.
*The three core access services are the local carriage service, the PSTN originating and terminating access service and the unconditioned local loop service (ULLS). The ULLS allows a competitor to lease the use of the customer's line to supply any combination of access, voice, ADSL or other data services.
