Development Of TUT Related & Non-TUT Related Performance Incentives
True-Up Test Related Positive Performance Incentives
Under Hunter Valley Coal Network Access Undertaking (HVAU) section 13.5, ARTC is committed to preparing and publishing options for a proposed positive performance incentive scheme which has the objectives of encouraging ARTC, through financial reward, to improve its performance in relation to making Capacity available for use either on a contracted or ad hoc basis and balancing the negative consequences of failing the system wide True-Up Test (TUT PPIS), to be included in the HVAU. Section 13.5 also requires ARTC to invite submissions from Access Holders and other stakeholders on the proposed TUT PPIS
Non-True-Up Test Related Positive Performance Incentives
In 2012, in accordance with HVAU section 13.3, ARTC sought to vary the HVAU to incorporate a positive performance incentive scheme which had the objectives of encouraging ARTC, through financial reward, to improve operating, maintenance and capital expenditure efficiency, and achieve desirable safety performance (non-TUT PPIS), to be included in the HVAU. Section 13.3 similarly required ARTC to invite submissions from Access Holders and other stakeholders on the proposed non-TUT PPIS.
ARTC considered in good faith the submissions provided and prepared a report addressing options for the proposed non-TUT PPIS having regard to the submissions and containing a proposed variation to the HVAU to include the proposed non-TUT PPIS. ARTC submitted the report to the ACCC and lodged a variation application with the ACCC under section 44ZZA(7) of the Competition & Consumer Act 2010 consistent with the report.
The variation application was subsequently withdrawn with the approval of the ACCC on the condition that the non-TUT PPIS would be developed and lodged by ARTC when developing the TUT PPIS under HVAU section 13.5.
Stakeholder Consultation
ARTC has consulted with stakeholders on options in relation to both a proposed non-TUT PPIS and a proposed TUT PPIS.
Submissions closed on Friday 20 March 2015.
The following submissions were received:
| Number | Title | Effective | Posted |
|---|---|---|---|
| 1 | PPIS Submission – Hunter Valley Energy Coal Pty Ltd | 17 Mar 2015 | 6 May 2015 |
| 2 | PPIS Submission – Glencore Coal Assets Australia Pty Limited | 20 Mar 2015 | 6 May 2015 |
| 3 | PPIS Submission – Vale Australia Pty Ltd | 20 Mar 2015 | 6 May 2015 |
ARTC will be including these submissions in a report to the ACCC. The following relevant documents were published for reference and to assist Access Holders and other stakeholders in preparing their submissions.
Submission Invitation Letter (Note that submissions are now closed)
| Number | Title | Effective | Posted |
|---|---|---|---|
| Positive Performance Incentive Scheme – Stakeholder Consultation Letter |
TUT PPIS – Consultation Paper
| Number | Title | Effective | Posted |
|---|---|---|---|
| TUT Positive Performance Incentive Scheme – Consultation Paper |