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. Details of determinations made by the ACCC are available on the public registers. For further information view the determinations register here.
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 upon which they agree to supply a specified service. The ACCC can accept or reject the undertaking.
View the list of undertakings currently before the commission 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 upon request.
The ACCC is able to vary or revoke declarations but must hold a public inquiry ahead of such changes, unless the changes are minor.
Notification of two telecommunications access disputes
Under Part XIC of the Trade Practices Act, Optus Networks Pty Ltd has notified the ACCC of two telecommunications access disputes with Telstra Corporation Limited.
The first access dispute relates to the price for the supply of the local carriage service (LCS) from Telstra to Optus. The LCS is a service for the supply of an end to end voice grade carriage service between two points within a standard zone. It effectively allows access seekers to resell local calls to end users.
The second access dispute relates to the price for the supply of the wholesale line rental (WLR) service from Telstra to Optus. WLR allows access seekers to resell the basic line rental that allows an end user to connect to the traditional voice network, make and receive voice calls and have a telephone number.
The ACCC has commenced the arbitration process for these access disputes.
RACV Club 501 Business Forum Speech by the ACCC Chairman
In a speech given to the RACV Club 501 Business Forum on 26 October 2006 the Chairman of the ACCC, Mr Graeme Samuel, addressed calls within the telecommunications sector for 'regulatory certainty' for new infrastructure investments.
The chairman stated that the ACCC has consistently made the point that there are mechanisms under the Trade Practices Act to achieve regulatory certainty after a full public inquiry.
Mr Samuel also noted that an exemption from access obligation is able to be obtained. Undertakings that propose the terms and conditions on which a carrier will offer the market access to a service can be offered to the ACCC. Parties need not wait for a declaration inquiry. The Act provides for these mechanisms to be submitted to the ACCC at any time.
Confirmation of interim determinations in five telecommunications arbitrations
On 27 October 2006 the ACCC confirmed that interim determinations were made in five telecommunications disputes regarding monthly charges for the supply of the unconditioned local loop services (ULLS).
The interim determinations provide for the following charges for the supply of the ULLS from Telstra:
Annual Charge Telstra Unconditioned Local Loop Service
Band 1
Band 2
Band 3
Charge
$86.40 per annum ($7.20 per month)
$212.40 per annum ($17.70 per month)
$410.40 per annum ($34.20 per month)
The interim determinations were made in arbitrations between Telstra and the following parties:
Primus Telecommunications Pty Ltd.
Optus Networks Pty Ltd.
XYZed Pty Ltd.
Request Broadband Pty Ltd.
PowerTel Ltd.
The interim determinations were made in mid to late August and the charges will apply between the parties until either the interim determinations expire, are revoked, or a final determination is made in each arbitration.
On 1 September 2006 the ACCC published in full an interim determination for ULLS monthly charges, and its associated statement of reasons in the Chime/Telstra arbitration. These are available on the ACCC website.
Under the Trade Practices Act the ACCC may make an interim determination in a dispute prior to making a final determination, and may publish the contents of a determination and/or reasons after consulting with the parties.
The ACCC has considered parties' submissions and issued a media release confirming that these interim determinations were made in these arbitrations on the same terms and for the same reasons as the interim determination in the Chime/Telstra arbitration.
The ACCC believes confirmation will assist in informing the debate on the ULLS and encourage more reasonable ULLS prices to apply across the market. 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.
Powerlink to pass through additional network support costs
On 13 October the AER approved Powerlink’s application to pass through $7.865 million of additional network support costs in its 2006–07 maximum allowable revenue. The amount is the variation between Powerlink’s network support allowance for 2004–05 and 2005–06 and actual costs incurred.
In accordance with Powerlink’s 2001 revenue cap decision, the AER will allow an annual revenue cap adjustment to cover any difference between the allowed and actual network support, provided the amount is demonstrated to be material, efficient and reasonable.
The AER considers that the pass through amount is material and efficient given that the application of the regulatory test demonstrates that network support is the most efficient solution to identified network constraints in north Queensland and south east Queensland. Further, it was reasonable in view of increased electricity demand in north Queensland, resulting from abnormally low rainfall and high temperatures; significantly higher fuel costs for the generators supplying network support in north Queensland; the prolonged outage of the Barron Gorge hydro generator; and the later than anticipated conversion to regulated status of Directlink.
Powerlink’s 2006–07 maximum allowable revenue will be increased by $7.685 million as a result of this decision.
All relevant documents can be found on the AER website.
National Electricity Market monitoring and enforcement
The AER published its final report on the events of 31 October 2005, when a major transmission line in New South Wales caused significant disruption to the market.
A price report detailing the events of 23 May, when the 30-minute spot price exceeded $5000/MWh was published on 30 October 2006.
The AER published its second annual report into the market impacts of transmission congestion (MITC) on 12 October 2006. This report covers the 2004–05 financial year.
A rebidding enquiry was sent to Macquarie Generation relating to a rebid associated with both the Bayswater and Liddell power stations on 20 July 2006.
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 wholesale market prices 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.
The above reports and relevant documents can be found on the AER website.
On 30 October 2006 the ACCC issued its 2005–06 quality of service report for price monitored airports, reporting on the availability and standard of airport facilities at Australia’s major airports.
The ACCC’s role of monitoring quality of service is complementary to its prices monitoring role for aeronautical and aeronautical-related services.
The results of the report show the following rankings of the airports over the period of ACCC monitoring, ranging between satisfactory and good.
The report found that over the past four years, Brisbane has been the top-ranked airport, achieving an overall rating of good. Melbourne and Sydney airports rated at the mid-point between satisfactory and good. Perth airport has been rated between satisfactory and good. Overall, both Canberra and Darwin have generally rated at the satisfactory level, with Darwin’s overall rating decreasing this year to be just below satisfactory.
Rating
Rank
2002–03
2003–04
2004–05
2005–06
Good
1st
Brisbane
Brisbane
Brisbane
Brisbane
2nd
Melbourne
Melbourne
Perth
Perth
3rd
Sydney
Sydney
Sydney
Adelaide
4th
Perth
Perth
Melbourne
Melbourne
5th
Adelaide
Darwin
Canberra
Sydney
6th
Darwin
Canberra
Adelaide
Canberra
Satisfactory
7th
Canberra
Adelaide
Darwin
Darwin
Note: Not all airports provide the same level of quality of service information.*
Following ratings of satisfactory over the reporting period, Adelaide’s overall rating increased significantly, up to just below good which appears to follow the opening of the new Multi User Integrated Terminal in 2005–06.
However, despite increasing slightly in 2005–06, Melbourne airport’s rating has declined since 2002–03, as has Sydney and Darwin airport since 2003–04. Canberra airport’s rating has decreased in 2005–06.
* Airport Regulations 1997 do not require Canberra, Darwin and Adelaide airports to undertake passenger surveys. Accordingly, the ACCC’s guidelines do not require these airports to undertake passenger surveys. Adelaide airport does, however, survey passengers for its own purposes and provides this information to the ACCC voluntarily. Further, Canberra airport has not provided the number of arriving and departing passengers per peak hour and therefore no objective indicator data is included in the overall ranking of the airport.
