Gas Access Arrangements Review (GAAR) 2008

Multinet’s current Access Arrangement was determined following an extensive consultation process in 2007 and 2008. The ESC commenced consultation on the next Access Arrangement to apply from 1 January 2008 to 31 December 2012 with the release of Consultation Paper No. 1 on 31 May 2006. Further information on the 2008 GAAR can be found on the ESC website.

Proposed Revised Access Arrangement

On 30 March 2007, Multinet submitted their Proposed Revised Access Arrangement comprising of:
Part A - Principal Arrangement; Part B - Reference Tariffs and Reference Tariff Policy; Part C - Terms and Conditions; Access Arrangement Information (AAI); Appendix to the AAI and numerous independent experts' reports. Copies of these reports can be found here.

ESC Draft Decision

On 28 August 2007, the Essential Services Commission released their Draft Decision and a revised Revenue Model for Multinet. The ESC chose not to accept Multinet’s revisions to the Access Arrangement.

Multinet's Response to the Draft Decision

In accordance with the ESC’s timetable, Multinet submitted a response to the ESC’s Draft Decision on 29 October 2007.  The documents making up this submission can be found here. They consist of a submission by Multinet in response to the Draft Decision; a revised Part A, Part B and Part C and Appendices of experts’ reports supporting Multinet’s position.  

ESC Final Decision

The ESC released their Final Decision on 7 March 2008. The Commission did not accept Multinet’s proposed revised Access Arrangement and required a number of amendments in order to provide approval.

Multinet’s Response to the Final Decision

On 7 April 2008, Multinet submitted its response to the Final Decision :

• Reasons for accepting or rejecting the Commission’s required amendments (the final decision response);
• Further expert evidence attached as appendices;
• Clean and tracked changed versions of Parts A, B and C of the revised Access Arrangements under section 2.40 of the Code; and
• An excel model with the final calculations.

Multinet final decision response to ESC 28 March 2008
Multinet part A principal arrangement
Multinet part B reference tariffs and tariff policy
Multinet part C terms and conditions
CEG AP beta memo 27 March 2008
Horton 4 comments on PEG response OPEX rate of change and productivity
Meyrick summary of responses to PEG opex PFP
NERA report 27 March 2008
SFG ESC Issues in relation to estimation of equity beta
SFG ESC Issues in relation to estimation of gamma

ESC Further Final Decision

On 19 May 2008, the ESC released its Further Final Decision.

The ESC’s further final decision was to not approve Multinet’s amended revisions. As required by section 2.42 of the Code, the Commission drafted and approved its own amended revisions to Multinet’s Access Arrangement. In summary, the Commission’s amended revisions:

• apply a different X factor from Multinet’s amended revisions
• do not accept a number of other amended revisions proposed by Multinet, including in relation to elements of Multinet’s proposed Services Policy, terms and conditions and Reference Tariff Policy (including Ancillary Reference Service tariffs) and
• otherwise adopted Multinet’s amended revisions.