AUSTRALIAN COMPETITION TRIBUNAL
Application by Ergon Energy Corporation Limited
(Labour Cost Escalators) (No 9) [2011] ACompT 3
|
FILE NO 3 of 2010 |
|
RE: |
APPLICATION UNDER SECTION 71B OF THE NATIONAL ELECTRICITY LAW FOR A REVIEW OF A DISTRIBUTION DETERMINATION MADE BY THE AUSTRALIAN ENERGY REGULATOR IN RELATION TO ERGON ENERGY CORPORATION LIMITED PURSUANT TO RULE 6.11.1 OF THE NATIONAL ELECTRICITY RULES |
|
BY: |
ERGON ENERGY CORPORATION LIMITED (ACN 087 646 062) |
|
MEMBERS: |
MIDDLETON J (DEPUTY PRESIDENT), MR R DAVEY AND MR R SHOGREN |
|
DATE: |
10 FEBRUARY 2011 |
|
PLACE: |
MELBOURNE |
REASONS FOR DECISION: (LABOUR COST ESCALATORS)
INTRODUCTION
1 The Tribunal gave reasons in respect of labour cost escalators dated 24 December 2010.
2 Joint submissions by the parties have been received relating to those reasons by letter dated 27 January 2011.
3 In essence, the parties point to some findings made in paragraph [61] of those reasons as to:
(a) the submission attributed to Ergon Energy as to the inflation rate to be applied to 2011 (2010-11);
(b) the appropriate inflation rate for 2010-11 to be applied in converting the nominal escalator to a real escalator; and
(c) the value of the real escalator produced by that conversion.
4 Having considered the joint submissions from the parties, the Tribunal agrees with the parties contentions contained therein.
5 An inflation rate of 2.5% should be applied for 2010-2011, for consistency with the cost escalator modelling framework in the Determination. This would produce a real increment of 1.95% for 2010-2011.
6 The Tribunal requests that the parties prepare minutes of the appropriate determination in light of the above reasons.
|
I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Decision herein of the Honourable Justice Middleton (Deputy President), RC Davey and RF Shogren. |
Associate: