The ACCC conducted an inquiry into the appropriate revenue cap to apply to the Tasmanian electricity transmission network, owned and operated by Transend Networks. The revenue cap will apply for a period of five and a half years commencing 1 January 2004.

On 24 September 2003 the ACCC approved the release of its draft decision in relation to the Tasmanian transmission revenue cap.

The ACCC released its draft revenue cap decision for Transend and called for submissions on 26 September 2003. The ACCC considered the relevant issues raised in the submissions in arriving at the final revenue cap decision.

On 17 October 2003 the ACCC held a public forum on its draft revenue cap decision. Various interested parties made presentations to the forum and various issues were raised. The ACCC considered the issues raised at the public forum in arriving at its final decision.

The ACCC engaged GHD Pty Ltd (GHD) to review key aspects of Transend's application. In particular, GHD reviewed Transend's proposed capital expenditure, operational and maintenance expenditure, service standards and starting asset base.

On 1 July 2003 the ACCC made GHD’s report available and called for interested parties to make submissions.

In its report to the ACCC, GHD recommended that Transend should be allowed an operating expenditure budget based on its alternative trend analysis. In its submission to the draft decision Transend asked that GHD clarify their recommendation. 

The ACCC was required by the national electricity code to apply a jurisdictional asset base valuation in the first regulatory period. On 8 August 2003 the Tasmanian treasurer approved a jurisdictional asset base valuation for Transend, details of which were in a paper provided by the Treasury.