Revenue adjustment amounts

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.

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.

Reports and papers

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.

Reports and papers