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 declared services register can be viewed on the ACCC website.
Exemptions from access obligations
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 exemptions where they promote the long term interests of end users.
ACCC proposes to grant Telstra PSTN OA exemptions
On 5 September 2008 the ACCC issued a draft decision proposing to grant Telstra exemptions from its obligations to supply public switched telephone network originating access (PSTN OA) services in five CBD areas and parts of metropolitan Australia. The draft decision relates only to wholesale voice services, not broadband services, which are not subject to open access regulation. This proposed exemption would also be subject to a number of draft conditions dealing with impediments faced by some access seekers when seeking to use the ULLS. These conditions are consistent with those the ACCC placed on the granting of the LCS and WLR exemptions.
The draft decision can be viewed on the ACCC website.
ACCC proposes to reject Telstra’s Optus HFC exemption but accept transmission exemption
On 22 September 2008 the ACCC issued a draft decision proposing to reject Telstra’s application for exemption from its obligations to supply regulated fixed line services to Optus within Optus’s hybrid fibre coaxial cable network footprint. The ACCC is not satisfied that granting the HFC exemption would promote the long term interest of end users. The ACCC also issued a draft decision that proposes to allow certain exemptions relating to the domestic transmission capacity service. Submissions on these draft decisions are due on 13 October 2008.
The Optus HFC decision can be viewed on the ACCC website.
The transmission decision can be viewed on the ACCC website.
All exemption application processes can be viewed on the ACCC website.
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 upon which they agree to supply a specified service. The ACCC can accept or reject the undertaking.
The list of current undertakings can be viewed on the ACCC 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
On 1 September 2008 a new dispute was reported to the ACCC under Part XIC of the Trade Practices Act 1974 between Primus Telecommunications and Telstra in relation to supply of unconditioned local loop services (ULLS). The ACCC continues to arbitrate 36 access disputes. In addition, 18 are under judicial review.
The current list of arbitrations can be viewed on the ACCC website.
On 18 September 2008, the ACCC issued a draft determination specifying model non-price terms and conditions for core telecommunications access services. The core telecommunication services are the main access services which competitors need in order to compete with Telstra for a variety of retail services. The proposed model terms focus on areas where service providers have had difficulty in negotiating mutually agreeable terms.
The ACCC seeks submission on the draft determination by 9 October 2008.
The determination can be viewed on the ACCC website.
Court Confirms ACCC’s LSS pricing approach
The Federal Court handed down its decision on three judicial review applications commenced by Telstra against the commission on 19 September 2008. Telstra had challenged the legality of final determinations that the ACCC had made in arbitrating three disputes over access to the line sharing service (LSS). Importantly, the judgment confirms that the ACCC’s approach to setting prices for the LSS, including the rental charge of $2.50 per month. While the court did find that the ACCC erred in one respect when making two of its decisions, the other 10 grounds of appeal were dismissed. The error concerned the one-off charge payable to disconnect an LSS during the nine months leading up to the making of the final determination. This charge is of minor significance compared to the other charges payable for the LSS.
The matter will be back before the court for orders on 22 October 2008.
Moranbah North Coal Mine NSP—classification of distribution service
On 12 May 2008 Moranbah North Coal Mine NSP submitted an application to the AER requesting that its distribution service not be classified by the AER and therefore not be subject to economic regulation under chapter 6 of the NER.
In August 2008, the AER released for public consultation a draft decision on the application made by Moranbah North Coal Mine NSP. The AER’s draft decision was not to classify the distribution service provided by Moranbah North Coal Mine NSP. The AER did not receive any submissions in response to the draft decision.
The AER’s final decision, released in September 2008, is to not classify the distribution service provided by Moranbah North Coal Mine NSP as either a direct control service or negotiated distribution service. As a consequence, Moranbah North Coal Mine NSP’s distribution service will not be subject to economic regulation under chapter 6 of the NER.
Moranbah North Coal Mine NSP’s application and the AER’s draft and final decisions are available on the AER’s website, www.aer.gov.au.
On 5 September 2008, the AER released the Draft Access Arrangement Guideline for public comment. The purpose of this order is to obtain information and documentation from service providers of covered transmission or distribution pipelines to ascertain compliance with their general and specific duties under the National Gas Law. Consultation on the Guideline closes on 12 December 2008.
Annual Compliance Process
Submissions closed on the proposal to make an information order for the annual compliance process on 9 September 2008.Submissions on the proposal to make an annual compliance order and the Draft Annual Compliance Guidelineare currently being considered by the AER.
The AER expects to release a draft decision shortly about the annual compliance order.
Draft Access Dispute Guideline
Consultation continued in September on the Draft Guideline for the Resolution of Distribution and Transmission Pipeline Access Disputes under the National Gas LawandNational Gas Rules (Draft Access Dispute Guideline). Submissions close on 24 October 2008.
Markets
Report into spot prices above $5000/MWh in the NEM on 23 July 2008
On 3 September 2008, the AER released a report into an event that saw the spot price exceed $5000/MWh in the Victoria, New South Wales, South Australia and Queensland regions of the National Electricity Market (NEM) on 23 July 2008.
This report as well as weekly reports and other $5000/MWh reports can be found at the AER’s website www.aer.gov.au.
On 30 September 2008 the ACCC released a position paper for public consultation on water charge rules for charges payable to irrigation infrastructure operators and bulk water operators.
Consistent with Part 4 of the Water Act 2007 (the Act), the Minister for Climate Change and Water, Senator Penny Wong, has written to the ACCC requesting advice on the water charge rules.
To date, the ACCC’s development of advice on water charge rules has progressed through separate consultation processes relating to rules for charges payable to irrigation infrastructure operators and rules relating to bulk water charges.
The two consultation processes were brought together as a result of changes that are to be made to the Act following the Intergovernmental Agreement on Murray-Darling Basin (MDB) Reform agreed to on 3 July 2008. As a result of the proposed changes to the Act, the same regulatory options will be available for water charges payable to both bulk water service providers and to irrigation infrastructure operators.
This position paper presents the ACCC’s preliminary positions on water charge rules for irrigation infrastructure operators (access charges) and bulk water operators within the MDB. The ACCC is proposing a tiered approach for the regulation of water charges payable to operators. The aim of this approach is to balance the costs and benefits of regulation for the various types of operators.
Submissions on the position paper are due no later than 24 November 2008.
The GROCERYchoice website (www.grocerychoice.gov.au) was launched on 6 August 2008. Its aim to help consumers find the cheapest supermarket chain in their area.
Each month GROCERYchoice publishes the prices of typical 'grocery baskets' from supermarket chains located 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 latest survey results found that overall Woolworths was the cheapest in 59 of the 61 regions. ALDI was the cheapest retailer for a basket of basic staple grocery products.
