Part XIC of the Trade Practices Act 1974 enables the ACCC to ‘declare’ telecommunications services. Upon declaration, standard access obligations apply.
If a service is declared, the carrier and carriage service provider that provides the declared service must meet the 'standard access obligations' prescribed under the Trade Practices Act. 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.
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.
Australian Competition Tribunal issues WLR/LCS exemption orders
On 24 August 2009 the Australian Competition Tribunal issued orders exempting Telstra from its obligations to supply the local carriage service (LCS) and the wholesale line rental (WLR) service. The orders vary those granted by the ACCC in August 2008.
Under the tribunal's orders, the application of an exemption in a particular area will depend on a number of factors, including the number of Telstra's competitors already using the unconditioned local loop service (ULLS) in that area as well as their market share. Twice a year, the ACCC will publish on its website a list of geographic areas where the exemptions will apply. No exemptions will come into effect before the end of next year.
View the list of current access undertakings here.
Access pricing
ACCC issues draft pricing principles, indicative prices for fixed line services
On 21 August 2009 the ACCC issued its draft pricing principles and indicative prices for six fixed-line wholesale services for the next three years. These services are the ULLS, the line sharing service (LSS), the public switched telephone network originating access (PSTN-OA) service, the public switched telephone network access (PSTN-TA) service, the LCS and the WLR service.
These services enable Telstra’s competitors to provide fixed voice and broadband services over Telstra’s copper network. The draft pricing principles propose that all six services will be priced on a cost basis. The ACCC considers setting indicative prices for wholesale access to these services will help to guide industry when negotiating the terms and conditions of access.
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 comment publicly on disputes except to announce when a dispute has been notified.
New access disputes
No new access disputes were notified to the ACCC during August 2009. On 18 August 2009 the ACCC accepted the withdrawal notification of an access dispute notified by Network Technology relating to Telstra’s supply of the LSS.
Draft regulatory information notice for Victorian distribution businesses
On 7 August 2009 the AER approved a proposed regulatory information notice for Victorian distribution businesses to comment on within 20 business days, in anticipation of the final RIN being prepared and formally served.
The AER is in the process of making distribution determinations for Citipower, Powercor, Jemena Victoria, SP AusNet and United Energy for the 2011 to 2015 regulatory control period.
Certain information is required from these distribution businesses to assist the AER in assessing each business proposal and developing a distribution determination for it.
Under the National Electricity Law the AER is able to use regulatory information instruments to gather information from regulated businesses and related providers if this is considered necessary to carry out the AER’s functions.
In April 2009 the AER provided Victorian distribution businesses with draft regulatory templates and written notices for comment. Following comments and further work, these instruments have been significantly refined before the release of the proposed RIN.
Regulatory proposals from Queensland and South Australian electricity distribution network service providers
On 3 August 2009 the AER hosted a public forum in Brisbane on the regulatory proposals submitted by Energex and Ergon Energy. The AER also hosted a public forum on ETSA Utilities’ regulatory proposal on 6 August 2009 in Adelaide.
Under the National Electricity Rules (NER), the AER is required to make a distribution determination for the Queensland (Energex and Ergon Energy) and the South Australian (ETSA Utilities) electricity distribution businesses.The distribution determination will establish a revenue requirement for each distribution business for the 2010–15 regulatory control period.
The AER published regulatory proposals received from Energex, Ergon Energy and ETSA Utilities in July 2009. The AER’s preliminary examination of the regulatory proposals found that each proposal sufficiently complies with the relevant information provisions of the NER. The AER invited interested parties to make written submissions by 28 August 2009 on each distributor’s regulatory proposal.
The AER also published its proposed negotiated distribution service criteria for each distribution business. Interested parties were invited to make submissions on these criteria.
The regulatory proposals and related documentation are available on the AER website. Minutes and copies of the presentations from the public forums are also available on the AER website.
Draft decisions are expected to be published at the end of November 2009, followed by final decisions in April 2010.
Public forum on AER draft determination on Victorian distribution businesses’ initial AMI budgets and charges
On 21 August 2009 the AER conducted a public forum to outline key aspects of its Victorian advanced metering infrastructure (AMI) draft determination, released on 31 July. The forum also gave stakeholders an opportunity to raise issues and ask questions on the draft determination.
Under Victorian regulatory arrangements, CitiPower, Jemena, Powercor, SP AusNet and United Energy Distribution (the Victorian electricity distribution network service providers) are required to install AMIs by December 2013 for all customers consuming less than 160 MWh of electricity per annum.
The businesses are to recover costs for the roll-out via a pass-through mechanism, established through a Victorian Order-in-Council that was gazetted 28 August 2007 and subsequently amended.
On 27 February and 1 June 2009, the businesses submitted budgets and charges applications to the AER. On 31 July 2009 the AER released its draft determination on the budgets and charges for the initial budget period, covering AMI budgets for 2009–11 and charges for 2010–11. The Order-in-Council requires the AER to make its final determination on budgets and charges for the initial budget period by 30 October 2009. Submissions on the draft determination close on 11 September 2009.
The budgets and charges applications, the AER’s draft determination, public forum presentation and minutes recorded at the forum are available on the AER website.
Quarterly compliance report for April to June 2009
In August the AER published its latest energy compliance report, which deals with compliance monitoring and enforcement matters in both the electricity and gas industries for the quarter ending 30 June 2009.
The report provides an overview of the results of investigations (including special reports into significant market or power system events), compliance audits and targeted compliance reviews, as well as electricity derogations and rebidding inquiries undertaken by the AER during that quarter.
The quarterly compliance reports are available on the AER website.
On 20 August 2009 Commissioner Ed Willet presented a paper, Promoting efficient and effective water trading across the Murray–Darling Basin, at the Australian Economic Forum. This paper, prepared by the Water Branch, outlined the ACCC's role in promoting the efficient and effective functioning of the water market for irrigators across the Murray–Darling Basin.
Release of enforcement guidelines for water market and water charge rules
On 28 August 2009 the ACCC released the Enforcement guide for Water Market Rules and Water Charge (Termination Fees) Rules to assist irrigation infrastructure operators in understanding the ACCC’s approach to enforcing the rules. In particular, the guidelines outline how the ACCC will respond to potential contraventions and the enforcement options available to it.
On 7 August 2009 the ACCC released a paper seeking submissions on a proposed monitoring regime of the water charge rules and water market rules. This paper sets out details of the proposed monitoring regime, particularly the information to be provided by reporting operators.
Under the Water Act 2007 the ACCC is responsible for monitoring compliance with the water market rules and the water charge rules. The purpose of the ACCC undertaking monitoring is to inform the Minister for Climate Change and Water and stakeholders more broadly of the degree of compliance with the rules and arrangements for regulated water charges and transformation.
The ACCC requested that submissions be provided no later than 14 September 2009.
ACCC consults on Australia Post’s proposal to increase the price of monopoly letter services
Under Part VIIA of the Trade Practices Act 1974 the ACCC can object to increases in the prices of notified services by declared persons. Australia Post is declared and its monopoly letter services are notified services.
Australia Post is seeking to increase the prices of its notified monopoly letter services in 2010. In particular, Australia Post is seeking to increase the basic postage rate from 55 to 60 cents. The ACCC is considering the proposed price increases and released an issues paper on 20 August 2009 in which the views of interested parties on the proposal are being sought.
Submissions in response to the issues paper are due by 18 September 2009.
ACCC releases draft decisions on grain port access arrangements
On 6 August 2009 the ACCC issued draft decisions that it would not accept access arrangements proposed by port operators CBH, ABB and Graincorp (under Part IIIA) in their current form.
The ACCC noted that it considered that the proposed port access arrangements developed by these operators should provide for greater clarity and transparency for Australian wheat exporters. Specifically, the ACCC considered that the port access arrangements should:
recognise the need for port operators to have flexibility to operate their supply chains efficiently in the transitionary environment
provide Australian wheat exporters with fair, transparent and non-discriminatory access to port terminal facilities
provide transparent and clear processes for managing demand for port terminal services.
The ACCC provided detailed feedback to the port operators to assist them to revise their arrangements into a form that could be accepted. Submissions were due by 3 September 2009.
