Reference tariff adjustments

On 8 September 2016, we approved Aurizon Network’s proposed 2015-16 adjustment charges application, as submitted to us on 1 August 2016. The application sought to recover $20.99 million from access holders in the central Queensland coal network systems.

On 31 July 2014, Aurizon Network sought approval from us for adjustment charges totaling $71.1 million to be reimbursed to access holders in the Blackwater and Goonyella systems. The adjustment charges arise because actual volumes for 2013–14 exceeded approved forecast volumes in these systems. No adjustment charges are proposed for the Moura, Newlands and Goonyella to Abbot Point (GAP) systems. The proposal provides for the adjustment charges to be returned to access holders concurrent with the invoicing of access charges for the month in which our approval is provided.

On 18 September 2014, we approved Aurizon Network’s proposal.

Our final decision on Aurizon Network’s adjustment charge application for the Moura system relating to the 2013 flood review is below.

Aurizon Network submitted to us an application for an adjustment charge to recover $0.94 million from access holders in the Moura system for financial year 2015.

We made our final decision on Aurizon Network’s 2013 flood review event claim in July 2014. The final decision was to approve $16.1 million (2012–13 dollars) in damage repair costs in the Blackwater and Moura systems being recovered through tariffs in accordance with the 2010 access undertaking.  We indicated that our preference was for recovery to occur in 2014–15, but noted we would consider the matter further as part of the UT4 approval process.

In November 2014, Aurizon Network applied to us for approval to recover the (escalated) costs over the remainder of 2014–15, via an amendment to reference tariff, effective from 1 January 2015.

On 16 June 2014 and 8 July 2014 respectively, Aurizon Network applied to us to vary reference tariffs as a result of two endorsed variation events.  Aurizon Network sought a change to the EC tariff for the Central Queensland coal region (CQCR) arising from a change in the pricing by an electricity retailer, and a change to the QCA levy associated with a variation in the QCA fees.

As we were satisfied in both cases that the requirements for an endorsed variation event were met, we approved the applications.

We assessed Aurizon Network’s 2013 review event claim to pass through $18.6 million relating to damage repair costs in the Blackwater and Moura systems associated with flooding in central Queensland in January 2013.  The pass-through application was submitted to us for approval on 30 July 2013, and revised on 4 March 2014.

On 21 May 2014, we made a draft decision not to approve the 2013 review event claim.  The full reasons for our position are contained in the draft decision.

On 23 July 2014, we made a final decision to not approve the claim, and to instead approve pass-through of $16.1 million (in 2012–13 dollars), consistent with the draft decision.

On 24 June and 11 July 2013 respectively, Aurizon Network applied to us to vary reference tariffs as a consequence of two endorsed variation events.  Aurizon Network sought a change to the EC tariff for the central Queensland coal region arising from a change in pricing by an electricity retailer, and a change to the QCA levy associated with a change in the QCA’s fees.

As we were satisfied in both cases that the requirements for an endorsed variation event were met, we approved the applications.

Aurizon Network submitted to us, for approval, a review event application relating to a proposed pass-through of the costs associated with flooding in central Queensland in December 2010 and January 2011.

Aurizon Network proposed to pass through $7.9 million in damage repair costs in the Blackwater and Moura systems.  In November 2012, we approved Aurizon Network’s application.

On 19 May 2011, we approved an endorsed variation event application from Aurizon Network to increase the EC tariff for coal train services in central Queensland by around 13%, largely due to increased environmental charges that were passed on by its electricity retailer.

On 22 November 2012, we approved an endorsed variation event application from Aurizon Network to vary reference tariffs to reflect changes in the:

• EC charge for coal train services in central Queensland, arising from a decrease in electricity retail prices
• AT5 tariff in the Blackwater and Goonyella systems, arising from a decrease in transmission use of system (TUOS) charges
• QCA levy.