Final access determination - Tasmanian Gas Pipeline

Information regarding an arbitration that has occurred under Part 23 (Access to non-scheme pipelines) is required to be published by the AER on its website (r.581). 

Rule 581 is specific about what information the AER is to publish. The contents of the final determination made by the arbitrator, including price and terms and conditions, is confidential.

Final access determination Tasmanian Gas Pipeline
Sector Gas
Segment Transmission
Region Tasmanian
Parties to the access dispute

TASMANIAN GAS PIPELINE Pty Ltd (ABN 36 083 052 019) c/o Palisade Asset Management,
Level 26, 140 William Street, Melbourne, Victoria 3000 (Service Provider).
 

AETV PTY LTD (ABN 29 123 391 613) of Level 10, 4-12 Elizabeth Street, Hobart, Tasmania 7000 (Shipper).

Name of the arbitrator Justin Gleeson SC
Time between referral of access dispute to the arbitrator and final access determination

The access dispute was referred to the arbitrator by the AER on 29 November 2017.

Final access determination made 12 April 2018

Pipeline services subject of access dispute

1. Firm forward haul service (FF)

2. As available forward haulage service (AA)

3. High Priority Storage Service and Victorian Transmission System Interconnect Service (HPSS)
Has the prospective user given notice that it wishes to enter an access contract in accordance with the final access determination?

Yes – notice was provided to the AER for the purposes of r. 573(3) on 26 April 2018.

Does the final access determination include a determination on asset valuation? Yes
Valuation method adopted

The valuation method accepted by the arbitrator was described by the arbitrator as a “Modified Depreciated Actual Cost” approach.

Modified Depreciated Actual Cost represents an indexed Depreciated Actual Cost adjusted downwards to reflect the value of the assets which are used in the provision of transport services by the Pipeline and excludes the value of the assets used in the provision of separate services such as HPSS.

Assets to which valuation applied Valuation applies to assets used in the provision of FF and AA transport services.
Determination of asset value $163.2 million