Revenue adjustment amounts

Status
Past review

Aurizon Network operates under a revenue cap regime, where any over- or under-recovery of its approved revenues in any given year is returned (recouped) through a reference tariff adjustment two years later (revenue adjustment amounts).

The 2016 approved access undertaking required Aurizon Network to annually prepare a revenue adjustment application for approval by us.

The QCA applied the 2010 AU process in assessing this submission, in accordance with the transitional provisions in the 2016 access undertaking, which came into effect on 11 October 2016.

Revenue adjustment amounts, 2017–18

We assessed Aurizon Network’s original and resubmitted proposal under the 2016 access undertaking (schedule F, cl. 4.3).

On 27 September 2018, Aurizon Network submitted a proposal on its revenue adjustment for 2017–18 to us. Aurizon Network proposed a net return to access holders of $0.5 million. We issued a draft decision to refuse to approve the revenue adjustment proposal on 15 November 2018.

On 27 November 2018, Aurizon Network resubmitted its revenue adjustment for 2017–18, proposing a net return to access holders of $0.7 million. It proposed to recoup monies from Blackwater, GAPE and Moura users, while returning monies to Goonyella and Newlands users.

On 14 December 2018, we made a final decision to approve Aurizon Network’s resubmitted proposal on its revenue adjustment for 2017–18.

Date Action
27 September 2018 Aurizon Network submitted its 2017–18 revenue adjustment proposal
19 October 2018 The QCA received submissions from the QRC and Pacific National
15 November 2018 The QCA issued a draft decision
27 November 2018 Aurizon Network resubmitted its 2017–18 revenue adjustment proposal
29 November 2018 Stakeholder submissions were due
14 December 2018 The QCA made its final decision

Reports and papers

Title Document
17 December 2018 Final report QCA letter to Aurizon Network – Final decision 2017-18 revenue adjustment pdf, 1.03 Mb
14 December 2018 Submission Aurizon Network – resubmission revenue adjustment amounts – marked-up pdf, 1.18 Mb
14 December 2018 Submission Aurizon Network – resubmission revenue adjustment amounts – clean pdf, 1.17 Mb
14 December 2018 Submission Aurizon Network – resubmission revenue adjustment amount letter to the QCA pdf, 218.62 Kb
Title Document
15 November 2018 Draft report Draft decision – 2017-18 revenue adjustment pdf, 845.97 Kb
15 November 2018 Notice 2017-18 revenue adjustment draft decision – notice of intention pdf, 159.08 Kb
Title Document
28 September 2018 Submission Aurizon Networks Letter to QCA re 2017-18 Revenue Adjustment pdf, 215.92 Kb
20 June 2018 Submission Aurizon Networks 2016-17 GPR Submission pdf, 816.69 Kb
28 September 2018 Submission Aurizon Networks 2017-18 Revenue Adjustment Explanatory Memorandum pdf, 1.14 Mb
Title Document
19 October 2018 Submission Pacific National – Response to Aurizon Network Submission on 2017-18 Revenue Adjustment pdf, 644.61 Kb
19 October 2018 Submission QRC – Submission FY18 Revenue Cap Adjustments pdf, 153.23 Kb

Revenue adjustment amounts, 2016–17

Aurizon Network’s 2016 access undertaking provides for it to submit a proposal each year to refund or recoup any over- or underrecovery of its allowable revenues (schedule F, cl. 4.3(h)).

On 26 September 2017, Aurizon Network submitted its 2016–17 revenue adjustment proposal to us, seeking to recover a net $40.5 million from access holders on the central Queensland coal network.

On 5 December 2017, Aurizon Network amended its proposal, to remove a $1.3 million claim for ground penetrating radar costs, reducing the overall net claim to $39.1 million.

On 14 December 2017 we approved Aurizon Network’s 2016–17 revenue adjustment claim, as amended on 5 December 2017.

Date Action
26 September 2017 The QCA published the proposal.
13 October 2017 The QCA received one submission, from Pacific National.
3 November 2017 Aurizon Network submitted an amended proposal, seeking to recover a net $39.1 million.
5 December 2017 The QCA made a final decision to approve the amended claim.
14 December 2017 Aurizon Network submitted its 2016–17 revenue adjustment proposal, seeking to recover a net $40.5 million.

Reports and papers

Title Document
14 December 2017 Submission QCA – Decision on Aurizon Network’s 2016-17 Revenue Adjustments pdf, 1.96 Mb
Title Document
12 January 2018 Submission BH Strategic Services – Assessment of AN GPRS Submission Final_Redacted pdf, 1.91 Mb
Title Document
14 December 2017 Submission Pacific National – Revenue Adjustment Amounts 2016-17 pdf, 156.01 Kb
Title Document
14 December 2017 Submission Aurizon Network’s- Letter to QCA re 2017 Revised Revenue Adjustment Submission (Amended) pdf, 148.95 Kb
14 December 2017 Submission Aurizon Network’s FY2017 Revenue Adjustment Amounts (Amended) pdf, 1.15 Mb
13 October 2017 Submission 2016-17 Revenue Adjustment Amounts pdf, 1.18 Mb