We assess the prudency and efficiency of Aurizon Network’s capital expenditure to determine if it should be included in Aurizon Network’s regulatory asset base for the Central Queensland coal network.
In our assessment we focus, for each project, on the:
• scope of works
• standard of works
• cost of works.
The assessment framework is set out in schedule E of the 2017 access undertaking.
Capital expenditure claim 2018–19
Aurizon Network submitted its 2018–19 capital expenditure claim on 25 October 2019 and subsequently amended the claim on 22 November 2019 and 19 December 2019.
We engaged Flagstaff Consulting Group (FCG) to provide engineering advice on the prudency and efficiency of Aurizon Network’s claim. A sample of projects was chosen for assessment.
Aurizon Network further submitted a revised claim on 30 April 2020 in response to the consultant’s report and the QCA’s initial assessment.
We approved the revised 2018–19 capital expenditure claim on 27 May 2020.
All related documents are available for download below.
Reports and papers
|01 June 2020||Submission||Aurizon Network – response to decision – revised 2018-19 claim||pdf, 333.67 Kb|
|01 June 2020||Submission||Aurizon Network – submission on consultant report||pdf, 913.31 Kb|
|24 February 2020||Consultant report||Flagstaff – Flowchart methodology assessment of Aurizon Network 2018-19 capex||pdf, 191.11 Kb|
|24 February 2020||Consultant report||Flagstaff – Assessment of Aurizon Network 2018-19 capex||pdf, 18.68 Mb|
|25 October 2019||Submission||AN—Capital expenditure report 2018–19||pdf, 1000.39 Kb|
|22 November 2019||Submission||AN—Amendment to 2018–19 capital expenditure claim||pdf, 225.93 Kb|
|24 February 2020||Submission||Aurizon Network FY19 Capital Expenditure – Amendment December||pdf, 294.60 Kb|
Capital expenditure claim 2017–18
Aurizon Network initially submitted its 2017–18 capital expenditure claim on 31 October 2018. It amended its claim on 16 November 2018.
We approved most of Aurizon Network’s amended capital expenditure claim for 2017–18, except for two projects that required adjustments, as outlined in our decision notice. All relevant documents, including our decision notice, are available for download below.
Report and papers
|12 September 2019||Submission||Aurizon Network—response to draft decision||pdf, 13.06 Mb|
|24 June 2019||Submission||Aurizon Network—submission on consultant report (redacted)||pdf, 17.68 Mb|
|31 October 2018||Submission||Aurizon Network—letter||pdf, 203.62 Kb|
|16 November 2018||Submission||Aurizon Network—amendment letter||pdf, 300.98 Kb|
|16 November 2018||Submission||Aurizon Network—amended capital expenditure claim 2017–18 report||pdf, 1.33 Mb|
|27 May 2019||Notice||QCA—stakeholder notice on consultant report||pdf, 546.24 Kb|
|14 February 2019||Notice||QCA—amended sample notice||pdf, 558.95 Kb|
|19 November 2018||Notice||QCA—stakeholder notice and sample list||pdf, 693.99 Kb|
|20 September 2018||Other documents||QCA—assessment approach for Aurizon Network’s 2017–18 capital expenditure claim||pdf, 648.13 Kb|
|03 December 2018||Submission||Pacific National—submission on Aurizon Network’s claim||pdf, 454.60 Kb|