Notified Electricity Prices 2008-09
The Queensland Competition Authority is responsible for calculating a Benchmark Retail Cost Index (BRCI) which is to be used to adjust regulated (notified) electricity prices annually.
Original 2008-09 BRCI Decision
On 28 May 2008, the Authority released its Final Decision on the 2008-09 BRCI.
The timetable for the 2008-09 BRCI was as follows:
- Interim Consultation Notice issued and call for submissions - 14 September 2007
- Submissions on Interim Consultation Notice closed - 15 October 2007
- Workshop to discuss submissions on Interim Consultation Notice - 31 October 2007
- Draft Decision released - 7 February 2008
- Submissions on Draft Decision closed - 29 February 2008
- Workshop to discuss submissions - 27 March 2008
- Final Decision released - 28 May 2008
- Gazettal of notified prices for 2008-09 - 30 May 2008
Judicial Review of 2008-09 BRCI
On 14 August 2008 and 1 September 2008, AGL Energy Limited ("AGL") and Origin Energy Retail Limited ("Origin") respectively instituted separate proceedings in the Supreme Court against the Queensland Competition Authority and the Minister for Mines and Energy, challenging the decision of the Authority which determined notified electricity prices for 2008-09.
AGL and Origin sought to set aside the decision. The proceedings (numbers 7793/08 and 8576/08) were defended by the Authority.
The cases were managed by His Honour Justice PD McMurdo.
The final hearing of these cases was conducted between 9 March and 11 March 2009.
The Court decision on this matter was handed down on 28 April 2009. The Court decided that:
- in working out the benchmark retail cost for both the relevant tariff year and the preceding tariff year, the Authority did not form a view of the likely total costs to be incurred during that year to purchase energy to supply the NEM load of the State for that year, as required by s92(1) of the Act; and
- in working out the total benchmark retail cost for the preceding year, the Authority used data which had not been used in working out that cost when the year to 30 June 2008 had been the relevant tariff year, and which the Authority was not otherwise entitled to use in this decision.
On 14 May 2009, the Court ordered that:
- the 2008-09 BRCI Decision be set aside;
- the Authority re-make its 2008-09 BRCI Decision according to law and these orders;
- the Authority recalculate the 2007-08 BRCI, and decide the BRCI for 2008-09, on or before 29 May 2009 ("Remade Decision");
- the Authority calculate notified prices for the 2008-09 tariff year by reference to the Remade Decision, and, by gazette notice, publish those notified prices ("2008-09 Notified Prices");
- the gazette notice referred to in the preceding order be in terms and be published so that the 2008-09 Notified Prices take effect immediately before the commencement of the 2009-10 tariff year; and
- the Authority calculate notified prices for the 2009-10 tariff year by reference to the Remade Decision and the 2008-09 Notified Prices.
On 29 May 2009, the Supreme Court of Queensland granted an extension, until 5 June 2009, for the Authority to release its Remade 2008-09 BRCI Decision.
