2006 Access Undertaking Amendments + Activities
Form of Regulation
Queensland Rail’s (QR) approved access undertaking recognised that a number of matters remained unresolved, including possible measures to mitigate QR’s exposure to volume risk for the central Queensland coal system and how reference tariffs would vary in response — and included processes to resolve these outstanding matters over the course of 2006-07.
On 28 February 2007, QR submitted proposed amendments to the access undertaking (the ‘Proposed Schedule F Amendment’). QR’s proposal incorporated amendments to QR’s access undertaking that sought to address:
- the form of regulation to apply from 1 July 2006, including when and how reference tariffs will vary to address volume risk;
- the take or pay arrangements to apply from 1 July 2006;
- the amount of the relinquishment fee to apply from 1 July 2006 for access agreements in existence on the day immediately prior to the commencing date;
- the definition of review event to apply from 1 July 2006; and
- any consequential amendments necessary due to the form of regulation to apply.
Part B of Schedule F of QR’s access undertaking provides for the Queensland Competition Authority to consider a Proposed Schedule F Amendment given to it by QR and either approve or refuse to approve it within sixty days, or such further period as is agreed with QR or as the Authority may reasonably determine. On 19 April 2007, the Authority extended the period in which it must decide to either approve or refuse to approve QR’s proposed Schedule F amendment to 31 May 2007 and notified QR.
The Authority published QR’s Proposed Schedule F Amendment, invited submissions on QR’s proposal, published a draft decision and invited submissions on its draft decision.
On 25 May 2007, the Authority released its final decision to not approve QR’s proposed amendments to its access undertaking – and required that QR revise and resubmit its proposal before 25 June 2007. In doing so, the Authority accepted, in principle, to move to a revenue cap, but required QR to amend how the revenue cap was implemented.
On 25 June 2007, QR submitted a revised proposal for the Authority’s approval.
On 29 June 2007, the Authority approved QR’s revised proposal. In making this decision, the Authority has had regard to the matters it considered in making its May 2007 decision as well as the detailed drafting included at that time in that decision.
In accordance with the processes contained in the access undertaking, the Authority has determined that the amendments take effect from 30 June 2007.
Final Approval
May 2007 Decision
Interim Reports/Papers
Submissions
