The approved 2016 access undertaking requires Aurizon Network to annually seek our approval of its proposed roll-forward of its regulatory asset base (RAB).
The roll-forward of the regulatory asset base (RAB) takes into account the QCA’s approved capital expenditure and calculates other components, such as inflation and depreciation, in accordance with the undertaking.
Upon request from Aurizon Network, we agreed to delay our review of the 2015–16 and 2016–17 RAB roll-forward and approved an extension until one month after the final approval of the 2017 draft access undertaking (DAU).
The amended 2017 DAU (UT5) was approved on 21 February 2019.
The extension request and approval letter are available below.
Aurizon Network submitted its 2015–16 and 2016–17 RAB roll-forward amounts on 21 March 2019, followed by an addendum to the initial submission on 15 May 2019. We approved the RAB roll-forward amounts on 29 May 2019.
The review was completed under UT5. The initial submission, addendum andtour response can be found here.
The extension requests and approval letters are available below.
Under Aurizon Network’s 2016 access undertaking (UT4), rail renewals are treated as a capital expense, rather than an operating expense, from 2015–2016.
Aurizon Network proposed to establish new asset lives for different types of sleepers and track (straight track, large curve and small curve) for each of its rail systems.
Our consultant (Arcadis Design & Consultancy) reviewed Aurizon Network’s proposal and concluded that the proposed asset lives are reasonable and in line with national and global benchmarks. We did not receive any submissions from interested parties during the consultation period.
We advised that we see some merit in establishing the new asset classes and lives.
The Arcadis report, Aurizon Network’s proposal, the stakeholder notice and our letter can be downloaded below.
|23 August 2017||Aurizon Network requested a roll-forward extension for 2015–16|
|14 September 2017||The QCA approved an extension for 2015–16|
|05 September 2018||Aurizon Network requested a roll-forward extension for 2016–17|
|11 September 2018||Aurizon Network submitted a proposal to establish new asset classes and asset lives for rail and sleepers|
|20 September 2018||The QCA approved an extension for 2016–17|
|26 September 2018||The QCA appointed Arcadis to assess the asset lives proposed by Aurizon Network|
|4 December 2018||Arcadis submitted its final report|
|13 December 2018||The QCA published Aurizon Network’s proposal and the Arcadis report|
|1 February 2019||Stakeholders’ comments were due|
|21 February 2019||The QCA approved Aurizon Network’s 2017 access undertaking|
|22 February 2019||The QCA advised Aurizon Network that is sees some merit in establishing the new asset classes and lives|
|21 March 2019||Aurizon Network submitted its 2015–16 and 2016–17 roll-forwards|
|15 May 2019||Aurizon Network submitted an addendum to the initial submission|
|29 May 2019||The QCA approved the amended RAB roll-forwards|