The access arrangement decision made by the AER in June 2011 in respect of Envestra Limited’s QLD gas distribution network was the subject of an application for review in the Australian Competition Tribunal (Tribunal). Envestra sought review of the decision made by the AER in respect of the following matters:
(a) the methodology and the estimation of the debt risk premium;
(b) the estimation of the market risk premium.
The National Gas Law requires an applicant to apply to the Tribunal for leave to apply for review. The Tribunal will heard submissions on the issue of leave at 10.15am on 12 October 2011. The application was allowed to proceed.
Notice to potential interveners
The National Gas Law allows certain individuals or bodies, with the leave of the Tribunal, to intervene in the application for review. If leave is granted an intervener is permitted to provide written submissions and, at the final hearing, may be permitted to orally address the Tribunal on specific points.
The Tribunal requested that the AER provide notice to interested parties about Envestra’s application for review and to advise that: any application for leave to intervene be filed with the Tribunal by 4.00pm on 19 August 2011; that any applicant for leave to intervene file with the Tribunal, and serve on Envestra and the AER, submissions and any affidavit material on which it seeks to rely in relation to the issue of leave to intervene by 4.00pm on 26 August 2011; and that the Tribunal will hear all applications for leave to intervene at 10.15am on 12 October 2011.
Amendments to the access arrangement - Australian Competition Tribunal orders
On 10 February 2012, the Tribunal made its final determination in relation to the access arrangement made by the AER in June 2011 for the Qld gas distribution network owned by Envestra. The determination varied the AER’s approach to calculating the allowance for the cost of debt.