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Industry Forum

Industry Forum Inquiry into making a Final Access Determination for the Domestic Transmission Capacity Service. 1. Welcome to the DTCS FAD Industry Forum. Part of the public inquiry into a final access determination for the domestic transmission capacity service. AGENDA.

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Industry Forum

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  1. Industry Forum Inquiry into making a Final Access Determination for the Domestic Transmission Capacity Service

  2. 1. Welcome to the DTCS FAD Industry Forum Part of the public inquiry into a final access determination for the domestic transmission capacity service

  3. AGENDA • Welcome - Ed Willett • Background and approach to pricing the DTCS - Rob Nicholls • Route definitions and distance issues - Grahame O'Leary • Pricing tail-end DTCS services– Grahame O’Leary • Development of the linear regression model - Grahame O'Leary • Pricing protected and unprotected services - Grahame O'Leary • Non-price terms and conditions of access - Grahame O'Leary • Conclusion and next steps - Ed Willett

  4. 2. Background • Competition and Consumer Act 2010 requirementAccess determinations may include price and non-price terms • 2010 - ACCC inquiry into DTCS pricing and domestic benchmarking approach • December 2010 - Information sought from transmission providers • April 2011 - DTCS IAD published • June 2011 - DTCS FAD public inquiry and discussion paper • August 2011 – DTCS FAD Industry Forum

  5. 3. Route definitions ACCC proposes to adopt the following route definitions: • inter-capital routes • regional routes • metropolitan routes • regional tail-end routes and • metropolitan tail-end routes

  6. 3. Route definitions • Inter-capital route - from an ESA in a capital city to an ESA in another capital city • Darwin and Hobart to be priced as inter-capital routes • Regional route - at least one ESA outside a capital city • Metropolitan route – wholly within a capital city • Regionaltail-endroute - wholly within a single ESA outside a capital city • Metropolitantail-end route - wholly within a single ESA inside a capital city

  7. 3. Capital city boundaries • ACCC proposes to define the boundaries of capital cities as: • Adelaide – a 25 km radius from a CBD ESA • Brisbane – a 25 km radius from a CBD ESA • Canberra – a 15 km radius from a CBD ESA • Darwin – a 10 km radius from a CBD ESA • Hobart – a 10 km radius from a CBD ESA • Melbourne – a 45 km radius from X km east of the CBD • Perth – a 30 km radius from a CBD ESA • Sydney – a 50 km radius from a CBD ESA • No radial boundaries for regional centres

  8. Boundary of Sydney

  9. Boundary of Melbourne

  10. 3. Distance issues • Distance is measured in different ways: • Radial distance • Specified regional routes • Regional areas • DTCS IAD used radial distance

  11. 4. Pricing tail-end DTCS services • Tail-end services appear to be provided as: • part of a bundle of transmission service, or • a stand-alone service. • DTCS IAD priced tail-end services as stand-alone services.

  12. 4. Pricing tail-end DTCS services • The ACCC is considering prices for: • stand-alone tail-end services • metro route prices for tail-end services bundled with metro or inter-capital services • regional route prices for tail-end services bundled with regional services

  13. A short break See you at 11.00am

  14. 5. The linear regression model • Prices set by benchmarking prices of competitive transmission services. • Draft regression model on ACCC website • Draft regression model estimates annual charge for different: • capacities • distances • network interface, and • level of protection.

  15. 5. The linear regression model • Draft DTCS FAD to include annual charges and connection charges • Draft DTCS FAD will include final regression model

  16. 6. Pricing protected and unprotected services • DTCS should be priced as a protected service • DTCS IAD prices are for protected services • Draft regression model estimates prices for protected and unprotected DTCS services • Final FAD regression model will include prices for protected and unprotected DTCS services

  17. 7. Non-price terms and conditions of access • The non-price terms in the DTCS IAD cover the following areas: • Billing and notification • Creditworthiness and security • General dispute resolution and procedures • Confidentiality provisions • Communications with end-users • Network modernisation and upgrade provisions • Suspension and termination, and • Facilities access.

  18. Non-price terms and conditions of access Commencement and expiry • DTCS FAD will commence on publication • DTCS IAD automatically revoked • DTCS FAD expiry 31 March 2014 when DTCS declaration expires

  19. 8. Conclusion and next steps • Submissions to Discussion Paper close on 29 August 2011. • ACCC expects a draft DTCS FAD for public comment in third quarter 2011. • ACCC final DTCS FAD in December 2011.

  20. Thank you for your participation

  21. www.accc.gov.au

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