The ACCC is vested with powers to arbitrate telecommunications access disputes and make a final binding determination to resolve a dispute. Arbitration hearings are private and the ACCC generally does not make any public comment on disputes except to announce when a dispute has been notified.
The current list of arbitrations can be viewed here.
Access undertakings
Division 5 of Part XIC of the Trade Practices Act enables access providers to voluntarily lodge written access undertakings with the ACCC specifying the terms and conditions on which they agree to supply a specified service. The ACCC can accept or reject the undertaking.
The list of undertakings currently before the ACCC can be viewed here.
Declared services
Part XIC of the Trade Practices Act enables the ACCC to ‘declare’ telecommunications services. Upon declaration, standard access obligations apply. The access provider is obliged to supply the service to an access seeker on request.
The ACCC has the ability to vary or revoke declarations but, with the exception of minor changes, must hold a public inquiry ahead of such changes.
The declared services register can be viewed here.
Final decisions on regulation of fixed network services
The ACCC issued final decisions on the future of key fixed network telecommunication services.
The ACCC decided to re-declare the unconditioned local loop service (ULLS), public switched telephone network (PSTN) originating and terminating access (OTA) services and local carriage service (LCS) for three years from 1 August 2006. It also decided to formalise the declaration of a wholesale line rental (WLR) service.
The ACCC found that regulated access to the ULLS, PSTN OTA, LCS and WLR would promote competition in a number of downstream markets, and will be in the long-term interest of end-users.
The declaration periods for all four services have been aligned to allow the declaration of these related services to be collectively reviewed in three years’ time.
The ACCC also made a final decision to revoke the declaration of the conditioned local loop service, on the grounds that the service provides little or no competitive benefits.
Further information about the decisions can be viewed here.
Pricing principles and draft indicative prices
The Trade Practices Act requires that the ACCC make pricing principles, and permits the ACCC to propose indicative prices, for declared services. The ACCC has issued pricing principles and draft indicative prices for the ULLS, PSTN OTA, LCS and WLR.
The ACCC proposes to continue the cost-based pricing approach for the ULLS and PSTN OTA services. It will also seek to implement cost-based pricing for the LCS and WLR service once a robust cost model is available. In the interim, the retail-minus pricing approach will continue for the LCS and WLR.
The ACCC has also published draft indicative prices for the PSTN OTA, LCS and WLR services to provide industry with certainty about the ACCC’s view on appropriate prices for these services while the ACCC finalises its assessment of Telstra’s undertakings for these services.
As there are a number of pricing issues currently being resolved in arbitrations for the ULLS, the ACCC does not consider it appropriate to pre-empt this assessment at this time.
A summary of the draft indicative prices can be viewed here.
Annual assessment of telecommunications competition
The ACCC issued its annual report on telecommunications market indicators. The market indicator report contains revenue, usage and market share information for fixed-line voice and mobile telephony services for 2004–05. For the first time, the report also provides aggregate data across carriers for internet services. The report is compiled from information provided by Telstra, Optus, Primus, AAPT and Vodafone.
The report shows that, for fixed-line services, total revenue from PSTN services fell while revenue from retail internet services increased, for Telstra, Optus, Primus and AAPT.
Total revenue from retail mobile services and the number of services in operation continued to increase in 2004–05. While network operators Telstra, Optus and Vodafone all reported increases in revenue of between six and 18 per cent in 2004–05, AAPT and Primus, who resell mobile services, reported a combined fall of 31 per cent in retail revenues from mobile services.
Preliminary discussions with G9 on rollout of fibre-to-the-node network upgrade
A consortium of nine carriers publicly labelled the G9 announced a proposal for a fibre-to-the-node (FTTN) network upgrade. The proposal is an alternative to the FTTN network upgrade proposed by Telstra in November 2005.
The G9 carriers approached the ACCC because they want certainty about their FTTN proposal for the benefit of potential investors and financiers. The ACCC has held preliminary discussions with the G9.
The G9 proposal raises a range of different issues from Telstra’s proposal to upgrade its existing network. For example, matters such as access to ducts under the Facilities Access Code and access to copper lines under the Trade Practices Act would need to be clarified.
The ACCC has made it clear to the G9 that no decisions could be made about its FTTN proposal without full public scrutiny of a detailed G9 proposal.
A list of current projects and consultations can be viewed here.
Under the National Electricity Rules (NER), the AER is responsible for regulating the revenues associated with the non-contestable elements of transmission services provided by Powerlink Queensland. The AER will set Powerlink’s revenue cap for five years from 1 July 2007 to 30 June 2012.
The AER received Powerlink’s revenue cap application on 3 April 2006. A copy of the application and supporting information can be found on the AER’s website. A public forum on Powerlink’s application was held in Brisbane on 20 April 2006. Powerlink provided an overview of its application and interested parties were given the opportunity to comment on the application.
On 3 May the AER commenced its formal consultation process, calling for submissions on Powerlink’s application. Five submissions from interested parties were received by the AER and copies can be found on its website.
The AER has engaged PB Associates to assist in reviewing elements of Powerlink’s application, including capital and operating expenditures and service standards. The AER plans to release its draft decision on Powerlink’s application in September 2006 with a final decision planned for December 2006.
All relevant documents can be found on the AER's website.
The ACCC received the proposed revised access arrangement and access arrangement information on 31 January 2006 for assessment under the gas code. The tariffs currently available under the access arrangement are the subject of a Queensland Government derogation.
On 18 April 2006 the ACCC considered that APT Petroleum Pipelines Ltd (APTPPL) provided sufficient further information to enable a considered assessment of its application. Accordingly, the ACCC released an issues paper and called for submissions to be submitted by 18 May 2006.
Five submissions in total were received to the issues paper. These included four users (Energex (Sun Retail Limited), TRUenergy, Origin, Queensland Gas Company) and the service provider, APTPPL. The ACCC is currently reviewing the issues raised in the submissions.
On 15 May 2006 the ACCC organised a roundtable discussion with users and the service provider to discuss the proposed queuing and trading policies for the Roma to Brisbane pipeline (RBP). Details of that meeting are soon to be posted at the AER website.
On 21 July 2006 the ACCC published a notice extending for two months the time period for approval to the revisions to the access arrangements. This in part reflects the delay in receiving the information required to commence the assessment. A news release was subsequently issued.
The ACCC plans to release its draft decision on APTPPL’s application in August 2006 with a final decision planned for October 2006. The access arrangement will set APTPPL’s tariffs for a five-year period to 1 July 2011.
Information relating to the proposed revised access arrangement is available on the AER’s website.
South West Queensland pipeline
On 3 July 2006 Epic Energy Queensland Pty Ltd lodged proposed revisions to its access arrangement for the South West Queensland pipeline as required. The AER has called for submissions from interested parties to assist it in its assessment of the proposed revisions. Submissions are to be provided to the AER by 9 August 2006. It is anticipated that a draft decision will be released in September.
All relevant documents can be found on the AER’s website.
Dawson Valley pipeline
On 14 July 2006 Anglo Coal (Dawson) Limited and Anglo Coal (Dawson Management) Pty Ltd requested an extension to the lodgment date of the initial access arrangement for the Dawson Valley pipeline, from 8 August 2006 to 6 November 2006. On 26 July 2006 the ACCC granted the requested extension of time under s. 7.19 of the gas code. Accordingly, the access arrangement lodgement date is now 6 November 2006.
All relevant documents can be found on the AER’s website.
AER delays decision on scope and process for distribution regulatory guidelines
The AER has delayed its decision on the scope and timing for consultation on its regulatory guidelines for distribution, to accommodate the AEMC's delay of the release of its draft Rules on Chapter 6 of the National Electricity Rules.
On 15 March this year the AER issued a document entitled Gas and electricity distribution regulatory guidelines—scoping paper. The scoping paper proposed the development of regulatory guidelines to assist stakeholders in understanding the AER’s approach to distribution regulation, for which it is scheduled to gain responsibility from early 2007. In this scoping paper the AER also proposed a consultation timetable and invited stakeholder comments.
The scoping paper and submissions received are available on the AER’s website.
The scoping paper indicated that the AER would issue a decision in June 2006 on its approach to the development of the guidelines.
The AER has invited further submissions following its decision to delay the release of the final decision on the issues raised in the scoping paper until August 2006.
It is likely that there will be some changes to the timing of the release of discussion papers on distribution guidelines given that many industry participants have indicated that they would prefer a delay for the AER to accommodate the AEMC's revised process.
National Electricity Market monitoring and enforcement
The AER continues to publish weekly market analyses that set out the spot price for each 30-minute trading interval in each region of the National Electricity Market. These reports highlight when wholesale market prices are more than three times the weekly average. They compare the demand and price forecasts published by NEMMCO four and 12 hours ahead of despatch with actual outcomes, and publish the most probable reasons for significant variations between actual and forecast prices.
Under the National Electricity Rules (the rules), the AER is required to develop and issue guidelines relating to the confidentiality of information obtained, used and disclosed to resolve a dispute under the dispute resolution process established by Chapter 8 of the rules.
The AER has now completed its consultation on the development of the draft resolution confidentiality guidelines. Copies of the AER’s final report and the Confidentiality guidelines for dispute resolution under clause 8.2 of the National Electricity Rules are available on the AER’s website.
