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.
The Trade Practices Act enables carriers to apply for exemptions from the standard access obligations that apply to a declared service. The ACCC can only grant the exemption if it is the long term interests of end-users.
ACCC begins public consultation on Telstra’s second transmission capacity exemption application
On 14 February 2008 the ACCC issued a discussion paper on Telstra’s applications for exemption from standard access obligations regarding the domestic transmission capacity service in the specified CBD, metropolitan and regional exchange service areas for inter-exchange and tail-end transmission capacity.
Telstra has sought exemptions in a number of exchange service areas, arguing that the supply of inter-exchange and tail-end transmission services in the nominated exchange service areas is competitive and that regulation of these services is no longer necessary.
As part of assessing the exemption applications, the ACCC is inviting interested parties to respond to issues raised in the discussion paper. The ACCC will consider submissions lodged with the ACCC by 14 March 2008.
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.
Access disputes
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.
New access disputes
In February 2008 the ACCC announced the notification of the following access disputes lodged under Part XIC of the Trade Practices Act:
TPG Internet Pty Ltd notified the ACCC of an access dispute with Telstra over its supply of the line sharing service
Agile Pty Ltd notified the ACCC of an access dispute with Telstra over its supply of the LSS
Saunders Property Pty Ltd notified the ACCC of an access dispute with Telstra over its supply of the LSS
In February 2008 the ACCC made interim determinations in three access disputes concerning price and non-price terms imposed in relation to Telstra’s supply of the LSS to EFTel, Primus and Wideband.
ACCC provides submission to Communications Alliance process
On 25 February 2008 the ACCC requested that the Communications Alliance address as a matter of urgency the lack of industry agreed processes for unconditioned local loop service (ULLS) migrations, in particular migration from LSS.
The ACCC considered the matter of LSS to ULLS migrations in the course of its inquiry into the LSS in 2007. The ACCC found that the lack of the migration processes and safeguards may create uncertainty and risk for access seekers wishing to transition to ULLS-based supply. In its final decision on the LSS declaration inquiry, the ACCC noted that the issue of LSS to ULLS migration processes could be examined further by industry participants through the Communications Alliance.
ACCC issues Telstra current cost accounting separation report for second half and full-year 2006–07
On 13 February 2008 the ACCC issued its ninth report relating to current cost accounts prepared by Telstra.
The report provides present-day valuations of Telstra’s assets for the second-half and full-year 2006–07 and compares them with the historical or original cost of the assets.
The report indicates that on a current cost basis, the aggregate values of assets for the core access services are higher than historical asset valuations.
Queensland distribution determination 2010 to 2015
The AER is preparing to undertake the next distribution determination for the Queensland electricity distribution network service providers, Energex and Ergon Energy. On 29 February 2008 the AER released a market notice setting out the process it must follow to make distribution determinations for Energex and Ergon Energy.
The market notice is available on the AER website.
AER releases statement, guideline and schemes for the Australian Capital Territory and the New South Wales 2009 distribution determinations
On 29 February 2008 the AER published a guideline, a statement and two schemes on matters relevant to the Australian Capital Territory and the New South Wales 2009 distribution determinations. These matters were:
control mechanisms for direct control services
control mechanisms for alternative control services
efficiency benefit sharing scheme
demand management incentive schemes.
The AER has decided not to apply a service target performance incentive scheme for the Australian Capital Territory and the New South Wales 2009–14 regulatory control period. The AER’s final decision on service target performance incentive schemes for the Australian Capital Territory and the New South Wales 2009 distribution determinations was published on 29 February 2008. The AER’s final decisions, schemes, guideline and statement are available on the AER website.
ElectraNet transmission determination
On 28 November 2007 the AER released its draft decision on the ElectraNet transmission determination for the period 1 July 2008 to 30 June 2013. In its draft decision the AER decided not to approve ElectraNet’s proposed pricing methodology.
In accordance with the AER’s agreed interim requirements relating to pricing methodology, ElectraNet was required to submit a revised proposed pricing methodology to the AER by 14 December 2007. Two submissions on ElectraNet’s revised proposed pricing methodology were received in January 2008.
In accordance with the National Electricity Rules (NER), ElectraNet has also submitted a revised revenue proposal in response to the AER’s draft decision. Five submissions on the AER’s draft decision and ElectraNet’s revised revenue proposal were received in February 2008.
The AER will issue its final decision on the ElectraNet transmission determination by 30 April 2008.
Documents associated with the transmission determination, including the draft decision, consultants’ reports and ElectraNet’s revised proposals are available on the AER website.
The Reliability Panel is conducting a transmission reliability standards review, following a recommendation of the Energy Reform Implementation Group Report. The issues paper, released on 21 December 2007, discusses existing transmission reliability standards, alternative frameworks for nationally consistent standards, links between transmission standards and other parts of the regulatory regime, and implementation issues surrounding the establishment of new nationally consistent framework for network security and reliability.
On 13 February 2008 the AER submitted to the issues paper that the reliability standards should be redrafted in line with the following high-level principles:
set following a transparent process, a rigorous cost/benefit assessment and thorough public consultation
set independently of the transmission network service provider
be specific as possible, preferably outlining the reliability standard to be achieved at each connection point
be set in such a way as to be neutral between the technologies used to meet the given standard.
The Reliability Panel’s draft report is due in April 2008.
