RL1 Insurance Proceeds

  • Project Overview

In late 2006, DBCT Management completed a ‘short gain’ expansion of the terminal to increase capacity from 54.5 mtpa to 59 mtpa which included a new machine to replace RL1.

At the time, the Authority retained the value of the original reclaimer in the regulatory asset base and approved higher DBCT revenues and tariffs that included the costs associated with the replacement RL1, on the basis that an adjustment would subsequently occur once insurance payments were received. 

In September 2011, following a review of the prudency of DBCT Management’s claims and settlement processes, the Authority approved DBCT Management’s application and adjusted DBCT revenues and tariffs accordingly.

This included a one-off payment from DBCT Management to terminal users to reflect previous overpayments.

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