The Australian Competition and Consumer Commission today issued its draft decision on the revenue cap applying to Queensland's electricity transmission services (the physical infrastructure used to transport high voltage electricity). The draft decision sets the maximum revenue that Powerlink, the Queensland transmission network operator, can earn in providing electricity transmission services in Queensland.
The ACCC's draft decision is in accordance with the principles in the National Electricity Code and the framework set out in its Draft Statement of Principles for the Regulation of Transmission Revenues.
The draft decision proposes setting a revenue path for Powerlink that trends up from $318.5 million in 2001/02 to $485.3 million in 2006/07. The increase in revenues reflects Powerlink's proposed capital expenditure program of $1,040.6 million over the regulatory period. The first year of the decision is also aligned with the 2001/02 revenue cap figure determined by the former Queensland Energy Reform Unit (QERU).
Powerlink's revenue path, as outlined in the draft decision, which is in line with recent ACCC decisions, is based on a post-tax nominal return on equity of 11.71 per cent and an opening asset base of $2,279 million.
The ACCC invites written submissions in response to its document, which close on 31 August 2001. If requested, the ACCC will also conduct a public forum. The ACCC will take into consideration issues raised by interested parties in submissions and at the public forum in its final decision. The ACCC anticipates that it will make a decision in September 2001.