Part XIC of the Trade Practices Act 1974 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.
ACCC reviews transmission declaration and issues draft report
On 11 February 2009 the ACCC issued its draft declaration report for the domestic transmission capacity service (DTCS). The draft report proposes to vary the current declaration to exclude the capital–regional transmission routes and exchange service areas that the ACCC previously determined should be exempt in its final decision on Telstra’s transmission exemption application in November 2008.
The ACCC proposes to extend the varied declaration for five years. Submissions from interested parties are due by Wednesday,4 March 2009.
On 20 February 2009 the ACCC extended the deadline for submissions on the discussion paper that was issued in November 2008. Submissions from interested parties are now due by Friday, 27 March 2009.
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).
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 ACCC is able 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
No new access disputes were reported to the ACCC in February 2009.
In February 2009 the ACCC extended the operation of three interim determinations made in arbitration of disputes over access to the LSS by Primus, Eftel and Wideband for a further 12 months. The ACCC did not make any final determinations in arbitration of disputes during February 2009.
Final decision—energy efficient public lighting charges (Victoria)
On 27 February 2009 the AER made the final decision on Victorian distributors' proposed operation, maintenance and replacement charges for energy efficient lights. The decision is available on the AER website.
A draft decision on energy efficient lights' charges was released by the Essential Services Commission of Victoria in November 2008. Submissions to the draft decision made by Citipower, Powercor, United Energy, Jemena and SP AusNet are available on the ESCV website. The submissions were used by the AER in making its final decision.
Public lighting charges in Victoria were regulated by the ESCV as an excluded service. From 1 January 2009 the AER assumed the responsibility for the economic regulation of electricity distribution services in Victoria, including the responsibility for regulating electricity distributors’ public lighting charges.
Queensland distribution network service provider cost allocation methods
In September and October 2008, the AER received proposed cost allocation methods from Ergon Energy and Energex. The CAMs identify the procedures to be followed by the distributors in preparing accounting statements for regulated parts of their businesses.Under the National Electricity Rules (NER), CAMs are required to be submitted by the distributors to the AER for approval.
The AER sought expert advice from accounting consultant, McGrathNicol Corporate Advisory, to assist in the assessment of the proposed CAMs.As a result of discussions between the AER, its consultant and the distributors, both Energex and Ergon Energy submitted revised CAMs in February 2009.
On 27 February 2009 the AER approved the revised CAMs, having determined that they were consistent with the AER’s cost allocation guidelines and met the NER criteria for approval.The CAMs will remain in place over the next regulatory period, from 2010 to 2015.
The AER’s final decision and the distribution network services providers' (DNSPs') CAMs are available at on the AER website.
On 3February 2009 the AER notified ETSA Utilities of its final decision for its CAM.
In September 2008 the AER received a proposed CAM from ETSA Utilities. The procedures to be followed by electricity distributors in preparing accounting statements for regulated parts of their businesses are outlined in their CAMs. CAMs also have other applications including the preparation of forecast operating and capital expenditure in accordance with the NER. Distributors are required to submit CAMs to the AER for approval.
The AER sought expert advice from accounting consultant, McGrathNicol Corporate Advisory, to assist in the assessment of ETSA Utilities’ proposed CAM. The AER approved ETSA Utilities’ proposed CAM on 30 January having determined that the CAM was consistent with the AER’s cost allocation guidelines and the requirements of the NER.
The AER’s final decision and the ETSA utilities’ CAM are available on the AER website.
As permitted under clause 6.10.3 of the transitional chapter 6 of the NER, the DNSPs have submitted revised regulatory proposals to the AER. Interested parties were required to provide their submissions by 16 February on both the AER's draft decision and the DNSPs' revised proposals.The AER invited interested parties to make written submissions on its draft decision and the DNSPs’ revised regulatory proposals. Submissions on the AER’s draft decision and the DNSPs’ revised regulatory proposals were received.
The AER’s final decisions and distribution determinations for each DNSP will be released by the end of April 2009.
Documents associated with the distribution determinations, including the draft decisions, consultants’ reports, the DNSPs’ revised proposals and submissions are available on the AER website.
On 28 November 2008 the AER released a draft decision on Transend’s transmission determination for the regulatory control period from 1 July 2009 to 30 June 2014. The draft decision establishes the basis for determining Transend’s transmission network charges for the 2009–14 regulatory control period.
As permitted under clause 6A.12.3 of chapter 6A of the NER, Transend submitted a revised revenue proposal to the AER on 14 January 2009. The AER invited interested parties to make written submissions on its draft decision. The AER received nine submissions.
The AER’s final decision and transmission determination for Transend will be released by the end of April 2009.
Documents associated with the transmission determination, including the draft decision, consultants’ reports, Transend’s revised proposals and submissions are available on the AER website.
AER draft decision on Transend’s electricity transmission revenue proposal
In February 2009 the AER received submissions on Transend’s electricity transmission revenue proposal. This followed the release, on 28 November 2008, of the AER's draft decision on Transend’s transmission determination for the regulatory control period from 1 July 2009 to 30 June 2014. The draft decision establishes the basis for determining Transend’s transmission network charges for the 2009–14 regulatory control period.
As permitted under clause 6A.12.3 of chapter 6A of the NER, Transend submitted a revised revenue proposal to the AER on 14 January 2009. The AER invited interested parties to make written submissions on its draft decision. The AER received nine submissions.
The AER’s final decision and transmission determination for Transend will be released by the end of April 2009.
Documents associated with the transmission determination—including the draft decision, consultants’ reports, and Transend’s revised proposals and submissions—are available on the AER website.
Ministerial release of water market rules and water charge (termination fee) rules
On 11 February 2009 the Minister for Climate Change and Water (Hon. Penny Wong) issued a public notice proposing to make water market rules and water charge (termination fee) rules. The minister has accepted advice and adopted the water market rules and rules for termination fees recommended by the ACCC.
Release of submissions—position paper on water charge rules for water planning and management
On 23 January 2008 the ACCC released its position paper on water charge (water planning and management) rules for comment.
Stakeholders were to provide submissions to the ACCC by COBFriday, 27 February 2009. To date seven submissions have been received and are now on the ACCC website for review.
The position paper proposed a hybrid approach to developing rules relating to charges for water planning and management activities. The approach involved the development of rules under s. 92 of the Water Act 2007 that would require the publication of information about regulated water planning and management charges, including the details of the charge and the process for determining the charge, and the use of voluntary model rules under s. 95 to develop an approach to reporting comprehensively on water planning and management activities, costs and the extent of cost-recovery occurring through charges.
