The Australian Energy Regulator (AER) is currently conducting a price determination for the Amadeus Gas Pipeline in the Norther Territory. The 5-year regulatory period is from 2016 to 2021.
The regulatory proposal was submitted to the AER on 4 August 2015 and the AER published its draft decision on 26 November 2015.
This draft decision accepted Amadeus’s forecast operating expenditure. However, forecast capital expenditure was reduced by 11.4% and the forecast rate of return or cost of capital was reduced from 8.3% (proposed by Amadeus) to 6.02%. This key change has reduced allowable revenue over the regulatory period by 21.1%.
APT Pipelines can submit a revised proposal to the AER by 6 January 2016 and interested parties can make submissions on the draft determination and the revised proposal to the AER by 4 February 2016.