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 requires Aurizon Network to annually prepare a revenue adjustment application for approval by the QCA.

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).

Our final decision was to approve the resubmitted revenue adjustment proposal.

On 27 September 2018, Aurizon Network submitted a proposal on its revenue adjustment for 2017–18 to the QCA. Aurizon Network was proposing a net return to access holders of $0.5 million. The QCA issued its 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 $0.7m. It proposed to recoup monies from Blackwater, GAPE and Moura users, while returning monies to Goonyella and Newlands users.

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

The related documents can be downloaded below.

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

Date
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
Date
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
Date
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
Date
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

On 14 December 2017 the QCA approved Aurizon Network’s 2016–17 revenue adjustment claim, as amended on 5 December 2017, for a net recovery of $39.1 million.

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 the QCA, 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.

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

Date
Title Document
14 December 2017 Submission QCA – Decision on Aurizon Network’s 2016-17 Revenue Adjustments pdf, 1.96 Mb
Date
Title Document
12 January 2018 Submission BH Strategic Services – Assessment of AN GPRS Submission Final_Redacted pdf, 1.91 Mb
Date
Title Document
14 December 2017 Submission Pacific National – Revenue Adjustment Amounts 2016-17 pdf, 156.01 Kb
Date
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