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.
View the declared services register 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 (LTIE).
ACCC grants Telstra further wholesale voice exemptions
On 29 October the ACCC decided to grant Telstra an exemption from its obligations to supply the public switched telephone network originating access (PSTN OA) service in parts of metropolitan Australia, subject a number of conditions. PSTN OA is an input into wholesale voice services, but not broadband services, which are not subject to open access regulation. The exemption is consistent with the ACCC’s recent decision to grant Telstra conditional exemptions in respect of the supply of two other inputs into wholesale voice services—wholesale line rental and local carriage service.
An exemption was also granted in the CBD areas of Sydney, Melbourne, Brisbane, Adelaide and Perth—recognising the presence of alternative infrastructure in these areas capable of providing voice services.
View all exemption application processes 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.
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 October 2008 no new access disputes were reported to the ACCC. However, eight access disputes (four public switch telephone network (PSTN) and four mobile terminating access service (MTAS)) have been withdrawn during October 2008. In effect, the ACCC continues to arbitrate 28 access disputes. In addition, 18 are under judicial review.
View the current list of arbitrations on the ACCC website.
Final and interim determinations
In October 2008 the ACCC did not make any interim or final determinations in arbitration of disputes.
View the register of final and interim determinations on the ACCC website.
Published determinations
In October 2008, the ACCC did not publish any determinations made in arbitrations concerning access disputes.
View all published determinations on the ACCC website.
Other developments
ACCC begins consultation on digital radio access undertaking
On 23 October 2008 the ACCC issued a discussion paper on access undertakings submitted by eight digital radio multiplex licensees. Digital radio services are to commence in some capital cities in the first half of 2009 and it is only after an undertaking has been accepted by the ACCC that the Australian Communication and Media Authority can determine that digital radio services may commence in that area.
The eight identical undertakings propose the terms and conditions on which the multiplex licensees will provide access to the digital radio multiplex transmission service to broadcasters. As part of assessing the undertakings, the ACCC is inviting submissions on the issues raised in the discussion paper by 21 November 2008.
Demand management incentive scheme applicable to Energex, Ergon Energy and ETSA Utilities
The National Electricity Rules allow the AER to develop and publish a demand management incentive scheme (DMIS) to provide incentives for distribution network service providers to implement efficient non-network alternatives or to manage the expected demand for standard control services in some other way.
Following a consultation period on its proposed scheme, on 17 October 2008 the AER released the final DMIS to apply to Energex, Ergon Energy and ETSA Utilities in the 2010–15 regulatory control periods.
Central Ranges Pipeline Tamworth Distribution Access Arrangement Amendment
On 10 October 2008 the AER approved an amendment to the Tamworth Distribution Access Arrangement to correct an error in the amended access arrangement approved in August.
The AER commenced consultation on the annual compliance process in July 2008, with the release of a draft Annual compliance guideline. Since then it has consulted on the proposal to make an annual compliance order and most recently on the modified order. The AER also held a forum about the annual compliance process with industry participants on 22 October 2008. The annual compliance process has been established under the NGL, 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 modified order closed on 24 October 2008. Four submissions were received. These submissions can be viewed on the AER website.
Draft access dispute guideline
Consultation on the draft Access dispute guideline closed on 24 October 2008. One submission was received and it can be viewed on the AER web site. The draft Access dispute guideline outlines how the AER will conduct an access dispute hearing under the NGL.
The Access dispute guideline is expected to be finalised by early December.
Draft access arrangement guideline
The purpose of the draft Access arrangement guideline is to provide service providers and other interested parties with an outline of how the AER will undertake an access arrangement review process under the NGL. In addition it will provide participants in any review process with some guidance on relevant policy considerations as well as some administrative details on how to frame proposals and make submissions.
Consultation continues on the draft Access arrangement guideline, which closes on 12 December 2008.
Recent high priced events in the national electricity market
The AER is required under the NER to investigate and report on any instances in the National Electricity Market (NEM) where the spot price exceeds $5000/MWh.
On 31 October the spot price exceeded $5000/MWh in New South Wales for seven trading intervals between 12 pm and 3.30 pm, reaching $10 000/MWh (VoLL) for three of these intervals. This was caused by high demand driven by high temperatures in Sydney. Around 4000 MW of generation capacity was unavailable on the day. Import capability in New South Wales was around 500 MW lower than forecast. The reduced supply and high demand led to low reserves and high prices during the period. In accordance with clause 3.13.7 of the National Electricity Rules, the AER will issue a separate report into the circumstances that led to the spot price exceeding $5000/MWh.
AER letter to Bulletin Board users regarding Moomba Plant outage
On Sunday 10 August there was a gas plant outage at the Moomba production facility. The production facility was not fully restored until Wednesday, 13 August. The AER investigated compliance with the gas bulletin board information provision obligations following this outage. In October the AER published the findings of the investigation. The AER decided not to take enforcement action, noting that the bulletin board obligations are relatively new. However, on 17 October 2008 the AER wrote to bulletin board users highlighting the relevant rule requirements and its expectation of how bulletin board participants should be promptly updating the bulletin board with information relating to gas outages.
ACCC begins consultation on ARTC’s application to vary its interstate rail access undertaking
On 31 October 2008 the ACCC released an issues paper seeking submissions from interested parties in relation to Australian Rail Track Corporation’s (ARTC) application to vary its 2008 interstate rail access undertaking under Part IIIA of the Trade Practices Act 1974 (the Act). The ACCC accepted ARTC's 2008 interstate rail access undertaking on 30 July 2008 and it became operative on 20 August 2008, with a 10-year term.
The undertaking sets out the terms and conditions for providing access to the interstate mainline standard gauge track in Western Australia, South Australia, Victoria and New South Wales. The undertaking does not cover access to tracks in the Hunter Valley coal network as this will be the subject of a separate access undertaking.
ARTC’s proposed variation relates to the indemnity and loss regime in clause 15 of the Indicative Access Agreement of the undertaking so that the liability of either ARTC or rail operator to third parties for loss or damage is limited in certain circumstances. ARTC claims that the need for variation has arisen due to a change in industry practices which results in ARTC being exposed to risk that was not envisaged at the time of the original undertaking application.
A copy of the issues paper and ARTC submission is available on the ACCC website. Submissions on the proposed variation are due by COB Friday, 21 November 2008.
ACCC releases quality of service monitoring guideline for airports
On 30 October 2008 the ACCC released a guideline for monitoring quality of service at Australia’s five major airports. The guideline sets out the quality of service information airport operators are required to provide to the ACCC under Part 8 of the Airports Act 1996. In addition, a statement of reasons paper was released, which provides an explanation of the ACCC decisions made in revising the guideline. Quality of service at major airports has been monitored by the ACCC since 1 July 1997. This airport quality of service monitoring guideline replaces the Guidelines for quality of service monitoring at airports released in March 2004.
Consistent with Part 4 of the Water Act 2007, the Minister for Climate Change and Water, Senator Penny Wong, wrote to the ACCC in December 2007 requesting advice on the water market and water charge rules. During October 2008 the ACCC released three papers seeking comment from stakeholders on options for this advice.
ACCC releases draft water market rules and draft advice
On 10 October 2008 the ACCC publicly released its draft water market rules and draft advice to the Minister for Climate Change and Water on the water market rules. The minister has requested final advice from the ACCC by December 2008, consistent with s. 98(2) of the Act.
The purpose of the water market rules is to free up the trade of water access rights within the Murray-Darling Basin. The rules will ensure that policies or administrative requirements of irrigation infrastructure operators holding a group water access entitlement on behalf of their member irrigators do not prevent or unreasonably delay trade.
Submissions on the draft water market rules and draft advice are due no later than 5 pm on Monday, 10 November 2008.
ACCC releases issues paper on water charge rules for water planning and management
On 10 October 2008 the ACCC also released for public consultation an issues paper on water charge rules for water planning and management.
Establishing a set of water charge rules that apply to all Murray Darling Basin jurisdictions’ water planning and management charges will improve the transparency and availability of information regarding such charges. It will also assist the development of water markets by sending clearer pricing signals to water users.
Submissions on the issues paper for water planning and management are due no later than 5 pm on Wednesday, 12 November 2008.
ACCC releases draft water charge rules and draft advice on termination fees
On 17 October 2008 the ACCC released for public consultation its draft water charge rules and draft advice regarding termination fees.
A key element of this reform is the removal of barriers to water trade to facilitate the operation of efficient water markets and provide opportunities for water trading. Water trading will allow water to be traded to its highest value use.
Water charge rules that encourage full cost recovery for water delivery services will contribute to achieving an economically efficient and sustainable use of water resources and water infrastructure assets. Water charge rules applied consistently across the Basin will facilitate the efficient functioning of water markets by removing distortions to trade and by sending signals to water users about efficient investment in water infrastructure assets.
Submissions on the draft water charge (termination fees) rules are due no later than 5 pm on Monday, 17 November 2008.
In addition to seeking written submissions on the draft water market rules and draft water charge (termination fee) rules, the ACCC has commenced holding public forums. The forums are being held in regional areas of the Murray Darling Basin to allow interested parties to raise issues relating to the draft rules. A Commissioner and relevant staff were on hand to explain the draft rules and the draft advice as well as listen to stakeholder concerns. Irrigator groups and irrigation infrastructure operators were also invited to present their views to the forums.
Public forums
During the month of October the ACCC held two public forums in Renmark and Mildura. Twenty-six people attended the Renmark forum and 31 attended the Mildura forum.
Data from the latest ACCC grocery price survey is now available on the GROCERYchoice website (www.grocerychoice.gov.au).
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 Coles and Woolworths were the cheapest on a total grocery basket in 30 regions each, with independents cheapest on total grocery basket in eastern central Queensland. ALDI was the cheapest retailer for a basket of basic staple grocery products.
