Application by Jemena Gas Networks (NSW) Limited [2015] ACompT 4

Application by Jemena Gas Networks (NSW) Limited [2015] ACompT 4

The Tribunal held that each of Jemena's identified topics raised a serious issue to be heard and determined and that Jemena had established a prima facie case that correction of one or more asserted errors, separately or collectively, would, or would be likely to, result in a materially preferable National Gas Objective decision. The requirements of s 248 of the National Gas Law were therefore met and leave was granted.

Jurisdiction
Australia
Judgment Date
30 July 2015
Procedural Posture
Application Under S 245 of the National Gas Law for Leave to Apply for Review of a Full Access Arrangement Decision Made by the Australian Energy Regulator / Leave Application Heard on the Papers
Outcome
Leave granted to Jemena Gas Networks (NSW) Limited to apply for review of the Final Determination.
Legal Topics
['limited Merits Review' 'national Gas Objective' 'value of Imputation Credits (gamma)' 'allowed Rate of Return' 'return on Equity' 'return on Debt' 'capital Expenditure Forecast for Connections and Market Expansion']
['consumer Law' 'energy Regulation' 'administrative Law'] ['limited Merits Review' 'national Gas Objective' 'value of Imputation Credits (gamma)' 'allowed Rate of Return' 'return on Equity' 'return on Debt' 'capital Expenditure Forecast for Connections and Market Expansion']

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Procedural Posture

Application Under S 245 of the National Gas Law for Leave to Apply for Review of a Full Access Arrangement Decision Made by the Australian Energy Regulator / Leave Application Heard on the Papers

Legal Issues

  1. 1 ["Whether Jemena's proposed review grounds gave rise to a serious issue to be heard and determined under s 248(a) of the National Gas Law." 'Whether there was a prima facie case that correcting the asserted errors would, or would be likely to, result in a materially preferable National Gas Objective decision under s 248(b) of the National Gas Law.' "Whether the AER's determination of the value of imputation credits (gamma) raised reviewable error." "Whether the AER's approach to return on equity, including reliance on the Sharpe-Lintner Capital Asset Pricing Model, raised reviewable error." "Whether the AER's transition methodology for return on debt raised reviewable error." "Whether the AER's forecast of market expansion capital expenditure for new connections raised reviewable error."]

Ratio Decidendi

The Tribunal held that each of Jemena's identified topics raised a serious issue to be heard and determined and that Jemena had established a prima facie case that correction of one or more asserted errors, separately or collectively, would, or would be likely to, result in a materially preferable National Gas Objective decision. The requirements of s 248 of the National Gas Law were therefore met and leave was granted.

Court Disposition

Leave granted to Jemena Gas Networks (NSW) Limited to apply for review of the Final Determination.

Orders

  • ['Jemena Gas Networks (NSW) Limited is granted leave to apply for review of the Full Access Arrangement Decision of the Australian Energy Regulator published on 3 June 2015 in respect of the matters identified in its application and on the grounds specified in its application.']