Part XIC of the Trade Practices Act 1974 (the 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 Act enables carriers to apply for exemptions from the standard access obligations that apply to a declared service. The ACCC can only grant exemptions where they promote the long-term interests of end users.
ACCC grants Telstra local carriage service and wholesale line rental exemptions
On 22 August 2008 the ACCC granted Telstra exemptions from its obligations to supply two declared services in parts of metropolitan Australia, subject to a number of conditions. These conditions are to deal with impediments faced by some access seekers when seeking to use the ULLS, such as capping of exchanges by Telstra, lengthy queues to enter into Telstra’s exchange buildings and service disruptions when migrating from the line sharing services to the unbundled local loop service. The decision related only to wholesale voice services—not broadband services, which are not subject to open access regulation. The exemptions cover 248 exchange service areas. The ACCC also made class exemptions for the same areas.
Further information on the exemptions is available on the ACCC website.
All exemption application processes are available on the ACCC website.
Access Undertakings
Division 5 of Part XIC of the 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.
A list of current undertakings is available on the ACCC website.
Pricing
ACCC releases local carriage service and wholesale line rental pricing principles and indicative prices for 2008–09
On 6 August 2008 the ACCC issued final pricing principles and indicative prices for the local carriage service and the wholesale line rental service for 2008–09. The final indicative price for the LCS decreases from the previous period’s 17.92c to 17.36c. This reflects an increase in Telstra’s unit avoidable retail costs. The final indicative prices for the WLR service increases from $23.12 to $25.57 for residential services and from $25.84 to $26.93 for business services. The ACCC believes that in the absence of a suitable industry cost model for both the LCS and WLR capable of producing reliable cost estimates—noting the ACCC’s development of its own fixed network services cost model—it is not appropriate to adopt cost-based pricing principles at this stage.
Final pricing principles and indicative prices can be viewed on the ACCC's website.
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 August 2008 no new access disputes were notified to the ACCC under Part XIC of the Act.
However, the ACCC continues to arbitrate 35 access disputes. In addition 18 are under judicial review.
The current list of arbitrations can be viewed on the ACCC's website.
Final and interim determinations
In August 2008 the ACCC did not make any interim or final determinations in arbitration of disputes.
The register of final and interim determinations can be viewed on the ACCC's website.
Published determinations
In August 2008, the ACCC did not publish any determinations made in arbitrations concerning access disputes.
All published determinations can be viewed on the ACCC's website.
There were no other developments to be reported in this report during August 2008.
Reports
The ACCC did not issue any communications related reports in August 2008.
Speeches
On 27 August 2008, Mr. Joe Dimasi, Executive General Manager delivered a speech at the 6th Annual Australian Telecommunications Summit. This particular speech will be available on the web shortly.
On 4 July 2008 Murraylink submitted an application to pass-through the costs of an insurance event. The costs cover the deductible amount of an insurance claim ($250 000).
Staff notified interested parties of Murraylink’s pass-through application through an AER communications notice (sent 11 July 2008) and placed a copy of the application on the AER website. Interested parties were given 20 business days to make submissions to the AER on Murraylink’s application. No submissions were received.
The AER assessed the claim on 29 August 2008 and found it to be in accordance with the Murraylink pass-through rules. As such the AER allowed Murraylink to pass-through $250 000 to customers in the 2009–10 financial year. The letter of approval for the pass-through application can be viewed on the AER’s website, www.aer.gov.au.
Framework and approach paper for Energex and Ergon Energy
On 27 August 2008 the AER published a framework and approach paper setting out its likely approach to the classification of Energex’s and Ergon Energy’s distribution services and its decision on the control mechanisms to apply to standard control services and alternative control services in the 2010–15 regulatory control period.
The framework and approach paper is available on the AER’s website, www.aer.gov.au.
On 30 June 2008 the AER commenced consultation on a separate framework and approach—application of schemes for Energex and Ergon Energy, through the release of a preliminary positions paper addressing the application of a service target performance incentive scheme, an efficiency benefit sharing scheme and a demand management incentive scheme.
In response to its preliminary positions paper the AER received submissions from Energex and Ergon Energy. The AER must publish its framework and approach paper on these matters by 30 November 2008.
The preliminary position paper and submissions from interested parties are available on the AER’s website.
Transend transmission determination
In June 2008 the AER published Transend’s revenue proposal, proposed negotiating framework and proposed pricing methodology along with the AER’s proposed negotiated transmission service criteria (NTSC) for Transend for the 1 July 2009 to 30 June 2014 period for consultation.
Submissions on Transend’s revenue proposal, proposed negotiating framework and proposed pricing methodology and the AER’s proposed NTSC closed on 11 August 2008. Submissions were received from interested parties and issues raised will be considered by the AER in reaching its draft decision. The AER will make its draft decision on or before 30 November 2008.
Documents associated with submissions from interested parties, including Transend’s revenue proposal and its attachments, proposed negotiating framework and proposed pricing methodology and the AER’s proposed NTSC can be found on the AER’s website, www.aer.gov.au.
TransGrid transmission determination
In June 2008 the AER published TransGrid’s revenue proposal, proposed negotiating framework and proposed pricing methodology along with the AER’s proposed negotiated transmission service criteria (NTSC) for TransGrid for the period 1 July 2009 to 30 June 2014 for consultation.
Submissions on TransGrid’s revenue proposal, proposed negotiating framework and proposed pricing methodology and the AER’s proposed NTSC closed on 8 August 2008. Submissions were received from interested parties and issues raised will be considered by the AER in reaching its draft decision. The AER will make its draft decision on or before 30 November 2008.
Documents associated with submissions from interested parties, including TransGrid’s revenue proposal and its attachments, proposed negotiating framework and proposed pricing methodology and the AER’s proposed NTSC can be found on the AER’s website, www.aer.gov.au.
NSW and ACT distribution determinations
In June 2008, the AER published EnergyAustralia, Integral Energy, Country Energy (New South Wales distribution network service providers) and ActewAGL’s (the Australian Capital Territory distribution network service provider) regulatory proposals for the 1 July 2009 to 30 June 2014 period for consultation. In addition, the AER published its proposed negotiable component criteria (NCC) for the New South Wales and Australian Capital Territory distribution service providers and proposed negotiated distribution service criteria (NDSC) for EnergyAustralia for consultation.
Submissions on the New South Wales and Australian Capital Territory regulatory proposals and the AER’s proposed NCC and NDSC closed on 8 August 2008. Submissions were received from interested parties and issues raised will be considered by the AER in reaching its draft decision. The AER will make its draft decision on or before 30 November 2008.
Documents associated with submissions from interested parties, including the New South Wales and Australian Capital Territory regulatory proposals and the AER’s proposed NCC and NDSC, can be found on the AER’s website, www.aer.gov.au.
Weighted average cost of capital (WACC) issues paper
On 6 August 2008, the AER released an issues paper on its review of the WACC parameters for electricity transmission and distribution network service providers (TNSPs and DNSPs). The review is required by the National Electricity Rules (NER) and applies to the next regulatory control period for all TNSPs and DNSPs who submit a regulatory proposal after 31 March 2009, which is the date the AER must release its final decision on the WACC review. The review covers all of the WACC parameters and the WACC-related issues of forecast inflation, and debt and equity raising costs. Submissions on the issues paper close on 17 September 2008; the AER intends to release its draft decision on 9 December 2008. It is expected the outcomes of the review will also be relevant to future gas access arrangement reviews considered by the AER.
Transend Revenue Proposal Public Forum
On 6 August 2008, the Australian Energy Regulator (AER) held a public forum on the revenue proposal submitted by Transend at the Hotel Grand Chancellor in Hobart.
Mr Andrew Reeves (AER board member) hosted the forum, with presentations from Transend, the Tasmanian Department of Infrastructure, Energy and& Resources (DIER), Aurora Energy and the Major Employers Group. These presentations and the forum minutes are available on the AER’s website, www.aer.gov.au.
DNSP annual information reporting requirements—issues paper
The AER has commenced consultation on the annual information reporting requirements for distribution network service providers (DNSPs). The AER proposes to collect information annually from DNSPs through the use of a regulatory information order (RIO) as governed by s. 28H of the National Electricity Law (NEL).
On 12 August the AER released an issues paper on the information reporting requirements of DNSPs to collect stakeholder feedback in preparation for publication of a draft RIO. The issues paper outlined the proposed annual information reporting requirements and included a set of information reporting templates.
Submissions on the issues paper will close on 22 September. The AER will publish a draft RIO later in 2008 and will publish the final RIO early in 2009.
Transmission network service provider cost allocation methodologies
In accordance with clause 6A19.4 of the National Electricity Rules (NER), transmission network service providers (TNSPs) submitted a cost allocation methodology to the AER outlining how they will allocate costs between the different categories of transmission services that they provide by 28 March 2008.
The AER approved all of the proposed cost allocation methodologies on 29 August 2008 and published its final decision on the cost allocation methodologies proposed by the TNSPs on 2 September. Letters of approval were sent to each of the TNSPs. The approved cost allocation methodologies, McGrathNicol’s reviews of the cost allocation methodologies and the AER’s final decision on the cost allocation methodologies are all available on the AER’s website, www.aer.gov.au.
The AER is required to assess the proposed cost allocation methodologies and approve/amend them six months after the methodologies are submitted (28 September 2008). The AER must assess the compliance of the cost allocation methodologies with the requirements of the NER and the AER’s cost allocation guidelines.
Transmission network service provider performance report for 2006–07
On 11 August 2008 the AER released its annual report detailing information from regulated ransmission network service providers. The report aims to provide greater transparency about the financial and operational performance of those businesses.
The report provides information on each of the transmission businesses revenue, profit, capital and operating expenditure and service standards for the 2006–07 financial year. The businesses covered in the report are Directlink, ElectraNet, EnergyAustralia, Murraylink, Powerlink, SP AusNet, Transend, TransGrid and VENCorp. The AER’s 2006–07 and preceding electricity transmission regulatory reports can be found on the AER’s website: aer.gov.au.
On 16 July 2008 the AER released its draft Annual compliance guideline and relevant discussion paper for its proposed annual compliance process. The draft Annual compliance guideline is intended to provide information to service providers and interested parties about the annual compliance process and how service providers report this compliance to the AER.
The consultation period for the draft Annual compliance guideline closed on 15 August 2008. The AER is currently reviewing the submissions to incorporate any suggestions for improvements to finalise the final Annual compliance guideline in November 2008.
In addition, to support the annual compliance process the AER published a proposal to make an information order for the annual compliance process on 18 August 2008. This proposal reflects the preliminary order included as an attachment in the draft Annual compliance guideline. Consultation on the proposal to make the annual compliance order concludes on 9 September 2008. Submissions made on the preliminary order for the draft guideline consultation process, as well as any submissions on the guideline, will be considered by the AER in making a draft annual compliance order.
Consultation continues on the draft guideline for resolution of distribution and transmission pipeline access disputes under the National Gas Law and National Gas Rules (draft access dispute guideline). Submissions close on 24 October 2008.
Amendment to the Central Ranges Network Access Arrangement
In July 2008, Central Ranges Pipeline Pty Ltd (CRP), proposed an amendment to its distribution access arrangement under rule 27(5) of the National Gas Rules.
On 15 August 2008 the AER approved an amendment to effect a variation in CRP’s distribution tariffs and ancillary charges for 2008–09. The amendment is effective 1 September 2008. The AER did not approve a proposed administrative change regarding the notification date of the tariff variation. Details are available on the AER’s website, www.aer.gov.au.
On the 6 August 2008 the ACCC launched the GROCERYchoice website www.grocerychoice.gov.au, aimed at helping consumers find the cheapest supermarket chain in their area.
Each month GROCERYchoice publishes the prices of typical ‘grocery baskets’ from supermarket chains located in 61 regions across Australia. Price information is obtained from an independent monthly survey of approximately 500 products from 600 supermarket outlets. Survey results are made available on the GROCERYchoice website on the first business day of the following month.
The first survey results found that overall Coles supermarkets were the cheapest in 52 of the 61 regions. ALDI was the cheapest retailer for a basket of basic staple grocery products.
On 15 August 2008 the ACCC released a position paper on water charge rules for termination fees for public consultation.
The position paper on water charge rules for termination fees follows the issues paper on water charge rules for irrigation infrastructure operators. The Water Act 2007 (the Act) creates new institutional and governance arrangements to address the sustainability and management of water resources in the Murray-Darling Basin.
The Minister for Climate Change and Water, Senator Penny Wong, wrote to the ACCC requesting advice on the making of water charge rules under the Act.
This position paper on termination fees directly addresses issues relating to fees or charges paid by water users to irrigation infrastructure operators for either terminating access or surrendering a water delivery right.
This position paper on water charge rules for termination fees was progressed independently of the remaining water charge rules in order to align timing with the development of advice on water market rules. A further position paper on water charge rules for other charges payable to irrigation infrastructure operators will be released in September 2008.
Submissions on the position paper are due no later than 15 September 2008.
