APA GasNet - Access arrangement 2013-17

APA GasNet applied for review of the AER's access arrangement decision for its Victorian gas transmission network to the Australian Competition Tribunal (Tribunal).

APA GasNet sought review of the AER's decision on the following matters:

The adjustment to reference tariffs for the 2013–17 access arrangement period to account for the delay, between the beginning of the period on 1 January 2013 and the date on which the new tariffs take effect, on 1 July 2013.
The opening capital base as at 1 January 2013, specifically, the adjustment to the opening capital base to remove the return on capital earned on the difference between the actual and estimated capital expenditure for 2007.
The calculation of depreciation based on indexed values for the capital base.
The estimate of the Rate of Return, specifically, the cost of equity.

The National Gas Law requires an applicant to apply to the Tribunal for leave to apply for review.

AER - Notice of APA GasNet application for review - 29 May 2013

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Merits review - Australian Competition Tribunal decision

On 18 September 2013, the Tribunal made its decision on the review. The Tribunal found the AER had not erred in its decisions on regulatory depreciation and the WACC. The Tribunal found the AER had erred in its decisions on the capital base adjustment and the “interval of delay”. The Tribunal ordered the AER and APA GasNet confer on the orders which the Tribunal should make submissions on the form of these orders by 27 September 2013.

Merits review - Australian Competition Tribunal orders

On 3 October 2013, the Tribunal made orders remitting the matter to the AER to remake its decision.

Merits review - AER decision

On 21 November 2013, the AER remade its decision in accordance with the Tribunal’s orders. The AER has remade APA GasNet’s access arrangement information and APA GasNet’s access arrangement to reflect its decision.