Review of the QLD and SA gas distribution access arrangement decisions by the Australian Competition Tribunal

The access arrangement decisions made by the AER in June/July 2011 in respect of Envestra Limited’s QLD and SA gas distribution networks and APT Allgas’s gas distribution network in QLD are the subject of applications for review in the Australian Competition Tribunal (Tribunal).

Envestra has sought review of the decision made by the AER in respect of the following matters:

1. the methodology and the estimation of the debt risk premium;
2. the estimation of the market risk premium;
3. the estimation of the forecast volume of unaccounted for gas in regard to its SA network;
4. the forecast costs for Envestra’s network management fee in regard to its SA network.

APT Allgas has sought review of the decision made by the AER in respect of the following matter:

1. the methodology and the estimation of the debt risk premium.

The National Gas Law requires an applicant to apply to the Tribunal for leave to apply for review. The Tribunal will hear submissions on the issue of leave at 10.15am on 12 October 2011. If the application is allowed to proceed, the Tribunal will also make directions as to the steps to be undertaken by the parties in preparation for the final hearing of the application for review.

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 has requested that the AER provide notice to interested parties about Envestra and APT Allgas’s applications 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, APT Allgas 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.

If you are interested in seeking the leave of the Tribunal to intervene in the application for review, we refer you to the requirements in sections 254, 255 and 244 of the National Gas Law and suggest you contact the Tribunal to notify it of your interest and to find out more about the procedure.

The Principal Office of the Tribunal is located within the Federal Court Registry in Melbourne: