On 23 August 2019, ARTC sent a letter to the ACCC seeking views on ARTC's proposal to revalue the Regulated Asset Base (RAB) on the Interstate network using the Depreciated Optimised Replacement Cost (DORC) methodology. ARTC stated it was seeking views on this proposal prior to formally submitting its replacement Interstate Access Undertaking application for ACCC assessment.
On 13 September 2019, the ACCC published an issues paper seeking stakeholder submissions on ARTC's proposal and the ACCC's preliminary view. Submissions were due by 4 October 2019.
On 8 November 2019, the ACCC published its Statement of Approach, which maintained its preliminary view that a full DORC revaluation is the most appropriate approach to valuing the RAB, with the ACCC engaging a consultant. The Statement of Approach sought a public commitment from ARTC that it will adopt the ACCC’s RAB value in its replacement Interstate Access Undertaking application, prior to the ACCC engaging a consultant with rail engineering and economics expertise to undertake the DORC valuation.
On 25 November 2019, ARTC sent a letter to the ACCC stating that if the ACCC proceeds with a DORC valuation, ARTC:
- will work constructively with the ACCC's consultants appointed to undertake the DORC valuation, and
- intends to adopt that DORC valuation in the Interstate Access Undertaking with segments aligned with key traffic flows to be lodged at the completion of the ACCC’s valuation process to replace the existing undertaking due to expire on 30 June 2020.
On 3 December 2019, the ACCC published ARTC's letter.
The ACCC will engage a consultant with rail engineering and economics expertise to undertake the DORC valuation for the Interstate network.