Revenue cap adjustments

The 2010 approved access undertaking required Aurizon Network to annually prepare a revenue cap adjustment application for approval by the QCA.

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 cap adjustment).

Revenue cap adjustment 2015–16

On 7 April 2017, we approved Aurizon Network’s 2015–16 revenue adjustment amounts submission.

Aurizon Network had provided the submission on 7 October 2016 under the 2010 access undertaking.

Aurizon Network proposed returning over-recovered revenues to access holders for the Goonyella ($28.4 million), Newlands ($2.6 million), GAP ($1.8 million) and Moura ($0.2 million) systems, and proposed recovering under-recovered revenues from access holders for the Blackwater system of $12.4 million.

In accordance with the transitional provisions in the 2016 access undertaking, which came into effect on 11 October 2016, we applied the 2010 AU process in assessing that submission.

Report and papers

Revenue cap adjustment 2014–15

On 16 February 2016, we approved Aurizon Network’s resubmitted 2014–15 revenue adjustment amounts.

On 30 September 2015, Aurizon Network submitted a 2014–15 revenue cap adjustment submission to us for approval.  Aurizon Network proposed returns to access holders for the Blackwater ($3.6 million), Goonyella ($26.1 million) and Newlands ($0.6 million) systems, and proposed a recovery from access holders for the Moura system of $2.8 million. Aurizon Network also initially requested an extension of time for its submission on an increment claim for 2014–15, and requested clarity from us on what evidence Aurizon Network would need to provide in order for us to approve an increment claim.

We considered that, consistent with clause 3.4.2, part B of schedule F of the 2010 access undertaking, we must determine the revenue adjustment amounts and increments together. Hence, on 20 November 2015, we requested that Aurizon Network resubmit its final revenue adjustment amounts and increment claim for 2014–15.

Aurizon Network resubmitted its 2014–15 revenue adjustment amounts on 8 January 2016.

Report and papers

Revenue cap adjustment 2013–14

Our final decision on Aurizon Network’s 2013–14 revenue cap adjustment proposal is below.

Aurizon Network submitted a revenue cap adjustment proposal for our approval, where it sought to recover $7 million in revenues comprising $8.5 million over-recovery in electric revenues, and $15.5 million under-recovery in non-electric revenues. The amounts claimed would only impact the Blackwater and Goonyella systems (electric and non-electric).

Report and papers

Revenue cap adjustment 2012–13

We approved Aurizon Network’s 2012–13 revenue cap adjustment application, which sought a net increase of $39.1 million in 2014–15 revenues to account for a $10.9 million under-recovery in electric revenues, and $28.2 million under-recovery in non-electric revenues, from 2012–13.

These revenue adjustment amounts would result in a net upwards variation in finalised references tariffs for 2014–15 in the Blackwater (electric and non-electric) and GAP (non-electric) systems, and net returns to access holders for the Goonyella (electric), Moura (non-electric) and Newlands (non-electric) systems.

Report and papers

Revenue cap adjustment 2011–12

We approved Aurizon Network’s proposed revenue cap adjustment application for 2011–12, which resulted in a net increase of $13.9 million in 2013–14 revenues, to account for a $2.7 million under-recovery in non-electric revenues, and an $11.2 million under-recovery in electric revenues, in 2011–12.

Report and papers

Revenue cap adjustment 2010–11

On 29 September 2011, QR Network submitted a revenue cap adjustment proposal for our approval. QR Network sought a net increase of $49.2 million in 2012–13 revenues to account for a $19.2 million under-recovery in non-electric revenues and a $30 million under-recovery in electric revenues in 2010–11.

We approved QR Network’s proposed revenue cap adjustment proposal for 2010–11.

Report and papers

Revenue cap adjustment 2009–10

On 29 November 2010, QR Network submitted a revenue cap adjustment proposal for our approval. QR Network sought a net reduction of $150,000 in 2011–12 revenues to account for a $6.1 million over-recovery in non-electric revenues and a $5.9 million shortfall in electric revenues in 2009–10.

On 21 April 2011, we released our final decision to approve the proposal for the reasons stated in that decision.

Report and papers