Regulated Third Party Access to Infrastructure

-----A Perspective on the Australian Experience

John FeilExecutive Director – National Competition

Council----------------

Australian Competition and Consumer Commission

Eighth ACCC Regulatory ConferenceThe evolution of regulation

Regulation Debates

Australian Access Regulation

Gas Pipelines

Electricity

Coordinated State Access Regimes

TPC – Part XIC

State Access Regimes TPA - Part IIIA

Ports

Rail

Grain handling

Water

Telecommunications

National Access Regime

Part IIIA Framework for Access

Access option Regulator

Private commercial negotiation and agreement

Not regulated

Effective State or Territory access regimes

NCC (Certification)ACCC/State regulators - IPART, ERA, ESCOSA

Access undertakings ACCC

Declaration NCC/Minister or Premier/ACCC

NCC/Decision Maker/Competition Tribunal must be affirmatively satisfied that:

(a)

Access would promote a material increase competition in a dependent market

(b)

It is uneconomical to develop another facility to provide the service

(c)

Facility is of national significance

(d)

Access can be provided without undue risk to health and safety

(e)

Access not already subject to an effective access regime

(f) Access not contrary to the public interest

TPA s44G(2)

Declaration Criteria

Other requirements

Cannot declare if:

Economic to develop another facility to provide part of the service

TPA s44F(4)

Publicly owned facility subject to competitive tender process approved by ACCC

TPA s44H(3A)

Supply of goods TPA s44B

Use of a production process TPA s44B

Use of intellectual property TPA s44B

Subject to approved access undertaking TPA s44G(1)

Declaration Applications – Timing & Outcome

Declaration Applications – Facility Type

Certification Applications – Timing & Outcome

Certification Applications – Facility Type

Timeliness

Timeliness

4 months (120days)NCC Recommendation

60 daysMinister Decision

4 months (120days)Competition Tribunal Review

12/07/2007 - 19/07/20076 monthsACCC Arbitration

60 daysMinister Decision

1/7/2007 - 3/10/20074 monthsCompetition Tribunal Review

DECLARATION OF ACCESS

CERTIFICATION OF STATE ACCESS REGIME

12/01/2006 - 12/08/20066 monthsNCC Recommendation

2 4 6 8 10 12

Months

4 Month Process – Key Milestones

ID Task NameJan 2007 Feb 2007

1/7 1/14 1/21 1/28 2/4

Pre application discussions

2 Complete application lodged

3 Public notification

4 35dSubmissions on application

6 Prepare draft recommendation

7 30dSubmissions on draft recommendation

9 Final recommendation

10Recommendation provided to Decision-maker

1

11

5 Submissions Close

8 Submissions Close

60dDecision period

Mar 2007 Apr 2007 May 2007 Jun 2007

2/11 2/18 2/25 3/4 3/11 3/18 3/25 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27 6/3 6/10 6/17 6/24

Day 120

Month 1 Month 2 Month 3 Month 4

References and Sources

• www.ncc.gov.au– NCC recommendations, submissions etc.,

application guides and templates, decision makers reasons

– Hilmer Report

• www.pc.gov.au– Review reports

• www.coag.gov.au– Communiqués, Intergovernmental

Agreements