SP AusNet - Access arrangement 2013-17

Sector: 
Segment: 
Region: 
Commencement date: 
1 January 2012
Regulatory period: 
1 January 2013 - 31 December 2017 (5 years)
Status: 
Contact: 
General InquiriesVicGAAR@accc.gov.au
Overview:

SP AusNet submitted a revised gas access arrangement proposal for the Victorian gas distribution system to the AER for review, pursuant to SP AusNet's obligations under the National Gas Law (NGL).

Under the NGL and National Gas Rules the AER has the function of reviewing and approving the terms of the Proposals. The Proposals contain the terms, including prices, under which the Service Providers propose to provide gas retailers with access to their networks for the period 1 January 2013 to 31 December 2017. The AER assesses the terms of the Proposals against the National Gas Objective which is set out in the NGL. Following the review the AER must make a final decision to approve, or to refuse to approve a Proposal.

On 11 September 2012, the AER released its draft decision not to approve SP AusNet's access arrangement proposal. The draft decision requires SP AusNet to submit a revised access arrangement proposal to the AER by 9 November 2012.

On 15 March 2013, the AER released its final decision not to approve SP AusNet's revised access arrangement proposal. The AER will make a decision giving effect to its own proposal within two months of its final decision.

Access arrangements pre 2013

Before coming under the regulation of the AER, the gas distribution network access arrangements for SP AusNet were approved by the Essential Services Commission of Victoria (ESCV). The current access arrangement runs until 31 December 2012. It can be found on the ESCV website.

Milestones

Initiation

30 March 2012

Project administration - SP AusNet Access Arrangement Review indicative timetable

The AER is required to make an access arrangement final decision to approve or not approve the access arrangement proposal for the SP AusNet Victorian gas distribution system within six months of receipt of the access arrangement proposal. This period can be extended by the AER but must be completed within an absolute overall time limit of 13 months.

The AER is required to follow a prescribed decision making process under the National Gas Rules (NGR) when reviewing SP AusNet's access arrangement. The indicative timetable outlines key stages in the review process. It will be updated after each key stage of the review process.

Scheduled dates for key stages in the decision making process Scheduled date
Publish proposal 2 May 2012
Submissions on proposal due 29 June 2012
Release of draft decision 10-14 September 2012
Revised proposal to be submitted 9 November 2012
Submissions on revised proposal due January 2013

Release of final decision

March 2013

Proposal

30 March 2012

Access arrangement proposal (7)

On 30 March 2012 the AER received an access arrangement proposal from SP AusNet for the 2012 Victorian Gas Access Arrangement Review.

Supporting information (19) - to SP AusNet access arrangement proposal

AECOM
Centre for International Economics
SP AusNet
SP AusNet
BIS Shrapnel
SKM
SP AusNet
Economic Insights Pty Ltd
SP AusNet
SP AusNet
Competition Economists Group (CEG)
NERA Economic Consulting
SFG Consulting
Capital Research Pty Ltd (CR)
NERA Economic Consulting
Price Waterhouse Coopers (PWC)
Competition Economists Group (CEG)

Stakeholder forum (1) - Terms and Conditions workshop

On 18 May 2012 the AER hosted a workshop on the proposed terms and conditions.

The workshop provided retailers and distributors with a forum to identify and discuss key issues arising from the proposed amendments to the non-price terms and conditions of the distributors' access arrangements.

Submissions (4) - to access arrangement proposal

The AER sought submissions from interested parties on SP Ausnet's access arrangement proposal. Submissions closed on 29 June 2012.

Consultation - Request for further information on proposed revisions to the access arrangement

The AER conducted a preliminary examination of the access arrangement proposal and found a nominated averaging period was omitted from the proposal. In accordance with sub-rule 43(3) of the National Gas Rules (NGR), the information submitted in SP AusNet's access arrangement information was, in the AER's opinion, deficient in its comprehensiveness or in any other respect. The AER requested SP AusNet, in accordance with sub-rule 43(3)(b) of the NGR, to submit further access arrangement information as an addendum to the information already submitted.

The AER requested SP AusNet to nominate an averaging period for the market data such as the risk free rate and debt risk premium.

In accordance with sub-rule 11(1)(b) of the NGR, the period taken by SP AusNet to correct the deficiency was disregarded for the purpose of calculating the decision making time for approving or refusing to approve SP AusNet’s access arrangement proposal and the decision making time under rule 10 of the NGR.

Draft decision

11 September 2012

Draft decision (7)

On 11 September 2012, the AER released its draft decision not to approve SP AusNet's access arrangement proposal. The draft decision requires SP AusNet to submit a revised access arrangement proposal to the AER by 9 November 2012.

Consultation paper (1)

On 9 October 2012, the AER released a Customer consultation paper on the Victorian gas access arrangement review. The consultation paper aims to assist customers and customer representative groups to understand the AER’s draft decisions on the access arrangements for the Victorian gas transmission and distribution businesses.

Revised proposal

13 November 2012

Revised regulatory proposal (22)

On 11 September 2012, the AER released its draft decision not to approve SP AusNet's access arrangement proposal. The draft decision required SP AusNet to submit a revised access arrangement proposal to the AER by 9 November 2012. SP AusNet submitted a revised proposal on 9 November 2012.

SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet
SP AusNet

Supporting information (15) - to SP AusNet Revised gas access arrangement proposal

SP AusNet
The Centre for International Economics
Professor Jeff Borland
BIS Shrapnel
Westar
SEG Consulting
CEG Consulting
Alan Gregory
Stephen Wright
CEG Consulting
Ernst and Young
Stephen Wright
Alan Gregory
Price Waterhouse Coopers (PWC)
Gregory Houston

Submissions (4) - to the AER's draft decision and SP AusNet's revised access arrangement proposal

Submissions closed on 7 January 2013. The Minister for Energy and Resources (Victoria) was granted an extension until 16 January 2013.

Final decision

15 March 2013

Final decision (6)

On 15 March 2013, the AER released its final decision not to approve SP AusNet's revised access arrangement proposal. The AER has proposed a number of revisions to SP AusNet's access arrangement. The AER will make a decision giving effect to its own proposal within two months of this final decision. 

The AER has also released a Guide to its review of gas network prices, to accompany and explain its final decisions. The purpose of this Guide is to make the AER’s decisions accessible to a wide ranging consumer audience.

Implementation

29 April 2013

Final access arrangement (5)

On 29 April 2013, the AER released its decision to approve the access arrangement (including the terms and conditions and access arrangement information) drafted by the AER for SP AusNet's gas distribution network for the regulatory period 1 January 2013 to 31 December 2017.