Cost Pass-through Applications
Full Retail Competition Cost Pass-Through Application from Energex
On 28 February 2007, the Queensland Competition Authority received an application from Energex seeking approval to pass-through of costs associated with the introduction of Full Retail Competition in Queensland.
Energex submitted a supplementary application on 28 September 2007 addressing issues that had been raised by the Authority and its consultant.
The supplementary application indicated that Energex was seeking approval to pass through $82.7 million of costs associated with the introduction of FRC.
On 30 April 2008, the Authority released its Draft Decision regarding Energex's FRC Cost pass-through Application. The Authority concluded that $20.1 million of the Stage 1 capital costs and the majority of the operating costs ($29.9 million) were justified. Submissions from interested parties closed on 30 May 2008.
The Authority received submissions from Energex, AGL and Origin Energy on the Draft Decision in late May 2008 and a supplementary submission from Energex on 26 August 2008. The submissions, and other documents relating to this review, can be downloaded below.
The Authority has released its Final Decision on Energex's FRC Cost Pass-through Application. The Authority has approved the pass-through of $62.6 million of costs associated with the introduction of FRC, comprising $34.0 million of project implementation costs and $30.6 million of operational costs, offset by savings of $2.0 million.
In terms of revenue, the Authority's decision provides for Energex to raise an additional $30 million in revenue in 2009-10. This amount represents the balance to be recovered after taking into account two amounts of $15 million which the Authority previously allowed to be factored into prices in 2007-08 and 2008-09 in anticipation of approving some FRC costs.
The Authority's Final Decision and the final report from consultants PB Associates can be downloaded below.
Interim Reports/Papers
Submissions
- Energex - Supplementary Submission re Draft Decision on Energex Application (Aug 08) (PDF, 154KB)
- Energex - Submission re Draft Decision on Energex Application (May 08) (PDF, 130KB)
- AGL - Submission re Draft Decision on Energex Application (May 08) (PDF, 75KB)
- Origin Energy - Submission re Draft Decision on Energex Application (May 08) (PDF, 38KB)
- Queensland Treasury - Submission re Energex Supplementary Application (Nov 07) (PDF, 69KB)
- Origin Energy - Submission re Energex Supplementary Application (Oct 07) (PDF, 78KB)
- TRUenergy - Submission re Energex Supplementary Application (Oct 07) (PDF, 22KB)
- AGL - Submission re Energex application (April 07) (PDF, 1315KB)
- Origin Energy - Submission re Energex application (April 07) (PDF, 97KB)
- TRUenergy - Submission re Energex application (April 07) (PDF, 41KB)
