Cost Pass-through Applications
APT Allgas FRC Pass-through Application
On 6 June 2007, the Queensland Competition Authority received an application from APT Allgas for approval to pass-through to customers costs relating to the implementation of full retail competition (FRC) in Queensland.
The application sought to pass through $23.1 million in costs associated with APT Allgas' FRC obligations, which was later revised to $24.9 million (June 2007 prices). This amount comprised $10.7 million of capital expenditure and $14.2 million of operating costs that APT Allgas claimed to have incurred (or would incur) directly as a result of meeting its FRC obligations.
The Authority released a Draft Decision on APT Allgas' application in September 2008. At that time, the Authority proposed to approve $3.2 million of capital expenditure and $7.8 million in operating costs.
Submissions on the Draft Decision from interested parties closed on 29 October 2008. The Authority received submissions from APT Allgas (through APA Group), AGL and Origin Energy in late October/early November 2008. The submissions and other documents relating to the Draft Decision can be downloaded below.
After considering these submissions and a report by PB Associates on APT Allgas' response to the Draft Decision, the Authority has released its Final Decision. The Authority has approved the pass-through of $2.91 million (nominal 2006 prices) in capital expenditure and $8.37 million (nominal 2006 prices) in operating costs.
The Authority's Final Decision will allow APT Allgas to raise an additional $11.09 million in revenue (nominal 2006 prices). As APT Allgas had been permitted to raise a provisional amount of $2.80 million in its pricing for both 2007-08 and 2008-09, it will only be allowed to raise a further $2.75 million in pricing over each of the remaining two years of the regulated period.
The Authority's Final Decision and the final report from its consultant PB Associates, can be downloaded below.
Decision/Recommendation
Interim Reports/Papers
Submissions
