Application by DBNGP (WA) Transmission Pty Ltd [2018] ACompT 1

AUSTRALIAN COMPETITION TRIBUNAL

Application by DBNGP (WA) Transmission Pty Ltd [2018] ACompT 1 Review from: Economic Regulation Authority of Western Australia

File number: ACT 9 of 2016

Tribunal: FOSTER J (DEPUTY PRESIDENT) MR ROBIN DAVEY (MEMBER) MR RODNEY SHOGREN (MEMBER)

Date of Determination: 16 July 2018

Catchwords: ENERGY AND RESOURCES – application for review of an access determination made by the Economic Regulation Authority of Western Australia (ERA) in respect of the Dampier to Bunbury natural gas pipeline for the 2016-2020 regulatory period – two grounds of review, namely, whether the ERA erred in its determination of a nominal after tax return on equity of 6.98%, resulting in a nominal after tax weighted average cost of capital (WACC) of 5.83% because it failed to make an appropriate adjustment to beta in the SL-CAPM in order to accommodate alleged low beta bias in the outputs of that model and whether the ERA erred in its determination of gamma viz the value of imputation credits at 0.40 for the purposes of r 87A of the National Gas Rules because it applied an incorrect utilisation rate (theta) in the relevant formula – no reviewable error found in the ERA's determination

Legislation: Acts Interpretation Act 1901 (Cth) Acts Interpretation Act 1915 (SA) Corporations Act 2001 (Cth) s 237(2)(d) Interpretation Act 1984 (WA) National Gas Access (WA) Act 2009 (WA), ss 3, 6B(1), 7, 9(1), Pt 3 National Gas Access (Western Australia) Law, ss 2, 2A, 8, 9, 10, 20, 27, 244, 245, 246, 248–251, 252, 258A, 259, 261 National Gas Law, ss 2, 26, 27, 28, 68C, 91, Ch 1 Pt 3, Ch 1 Pt 4, Ch 2 Pt 2, Ch 8 Pt 5, Ch 9 Pt 1 Div 2, Sch 2 cll 1, 7, 8, 9, 11, 12, 13 National Gas (South Australia) Act 2008 (SA) National Gas Access (WA) (Part 3) Regulations 2009, s 4, Sch 1 cl 2(1) National Gas Rules, rr 52, 64, Pt 9 Statutes Amendment (National Electricity and Gas Laws—Limited Merits Review) Act 2013 (SA)