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 can be accessed on the public register.
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 ACCC 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 has the ability to vary or revoke declarations but, with the exception of minor changes, must hold a public inquiry ahead of such changes.
No notifications of access disputes were lodged with the ACCC in September.
Access undertakings
No access undertakings were lodged with the ACCC in September.
Declared services
ACCC begins public consultation on digital radio access regime
On 21 September 2007 the ACCC issued a discussion paper on the access regime that will apply to digital radio.
Digital radio licences are expected to be allocated to joint venture companies that will manage the digital radio transmission equipment in each licence area. Once the digital radio licences subject to the access regime have been allocated by the Australian Communications and Media Authority, the licensees must lodge an access undertaking with the ACCC.
The access undertakings specify the manner in which the licensees are to provide access to transmission capacity to individual digital radio broadcasters in each licence area.
The ACCC is seeking submissions from interested parties on the issues raised in the discussion paper. Interested parties are requested to make submissions by 2 November 2007.
ACCC issues accounting separation report for June quarter 2007
On 28 September the ACCC issued its sixteenth 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 July 31 2007.
The report presents an imputation analysis that compared Telstra’s retail prices to the prices of three core telecommunications access services. The analysis is designed to indicate whether margins are sufficient to allow efficient firms to compete against Telstra in the retail market. The analysis is not intended to detect all forms of potentially anti-competitive conduct.
The imputed margins reported across the bundle of fixed-voice services and unconditioned local loop service decreased in this quarter, although they remain higher than they were in the July 2006 quarter.
The report also compares Telstra's customer service levels for wholesale and retail fixed-line telephony and ADSL customers. The report does not indicate whether any material discrimination by Telstra occurred during the July 2007 quarter.
On 28 September 2007 the AER issued a package of six final guidelines and accompanying explanatory statements for electricity transmission businesses. These guidelines are required under chapter 6A of the National Electricity Rules (NER). The six guidelines relate to:
the post-tax revenue model
the roll forward model
an efficiency benefit sharing scheme
a service target performance incentive scheme
submission guidelines
cost allocation guidelines
Each of the six guidelines are available on the AER website.
Information guidelines—final
On 28 September 2007 the AER released its final decision on information guidelines for electricity transmission businesses. The information guidelines are also required under chapter 6A of the NER.
The information guideline facilitates the annual collection of information on the performance of transmission network service providers (TNSPs) within the regulatory control period. The guideline sets out general guidance and protocols underlying the collection of information and cover a range of information requirements as specified under chapter 6A of the NER.
The final information guidelines are available on the AER website.
Note: the AER is also required to develop and/or maintain a number of other guidelines to complete the package of transmission regulatory guidelines. Other guidelines under development relate to the regulatory test and to transmission pricing. The AER will issue these guidelines separately.
Process guidelines for contingent projects—final
On 7 September 2007 the AER released its final process guidelines for contingent projects. Under clause 6A.8.1 of the NER, a contingent project is specified as a project the AER considers is reasonably required but is generally excluded from a TNSP's ex ante capex allowance in a revenue determination because of uncertainty surrounding the project. The project is considered necessary when a specific—a trigger—event, which is outlined in the revenue determination, occurs.
Under clause 6A.8.2(d) of the NER the AER is required to assess contingent project applications made by TNSPs. The NER also set out what TNSPs are required to do when lodging applications and the AER's obligations when assessing their applications.
The NER do not require the AER to publish a guideline on contingent project applications. The guideline is designed to assist TNSPs to lodge applications that comply with the NER. The AER will benefit by the creation of a streamlined process that will help it to meet its obligation to make a decision on application within 30 business days.
Powerlink pass-through application
On 14 September 2007 the AER received an application from Powerlink requesting approval to pass through costs associated with the provision of grid support during the 2006–07 financial year.
The AER invites written submissions from interested parties on Powerlink’s application. Submissions close on 12 October 2007. Documents associated with the Powerlink’s application are available on the AER website.
Markets
16 January 2007 investigation
On 11 September 2007 the AER published its report on its investigation into the events of 16 January 2007, when bushfires caused the main transmission links into Victoria to fail.
The report identified a number of shortcomings in National Electricity Market Management Company's systems and procedures. The AER proposed to make two rule changes:
to make clause 4.2.3(f) of the NER clear that NEMMCO has full responsibility for the reclassification process and decisions with the goal of making the reclassification process more transparent, rigorous and consistent
recommending the removal of the obligation on NEMMCO to set the dispatch price to value of lost load following automatic load-shedding resulting from a contingency event.
The AER recommended the establishment of formal and effective communication processes between all parties involved in load-shedding to ensure that appropriate action can be taken. The AER sought an undertaking from NEMMCO obliging it to take all steps necessary to ensure that it does not breach clause 3.9.3 of the NER in the future. The AER also recommended that the Victorian Government remove the chapter 9 derogations relating to generator technical standards.
The AER’s final investigation report is available on the AER website.
The Water Act 2007 (due to commence in early 2008) was passed by the Australian Parliament in August 2007 and gives effect to the National Plan for Water Security, announced by the Prime Minister on 25 January 2007.
The Act provides the ACCC with a key role in developing and enforcing water charge and water market rules consistent with the National Water Initiative. The aim of these new functions is to ensure that water markets are able to operate freely across state boundaries and that perverse outcomes from inconsistent water charging arrangements are avoided.
