Access arrangements detail the terms and conditions, including prices, which apply to third parties seeking the use of regulated electricity networks within Western Australia.
Western Power’s South West Interconnected Network (SWIN) is the only regulated network within the State at present, and is regulated under the Electricity Networks Access Code (Access Code).
The Access Code provides the framework for preparing, approving and reviewing an access arrangement for a regulated network. Chapter 5 of the Access Code specifies the required contents of an access arrangement, while Chapter 4 outlines the approval and review process in detail. A general outline of the approval process can be found under Western Power’s SWIN.
Under section 4.1 of the Access Code the service provider (Western Power) must submit its first proposed access arrangement, together with access arrangement information, to the Economic Regulation Authority (ERA) by the submission deadline - six months after the network becomes covered.
Access Arrangement Revision Process for the SWIN
Proposed revisions to the access arrangement must be submitted to the ERA in accordance with the Access Code. The ERA must then approve or not approve the proposed revisions as specified in the Access Code. Sections 4.46 to 4.52 of the Access Code provide relevant information pertaining to the review of an access arrangement. A general outline of the approval and review process can be found under Western Power’s SWIN.
Under the Access Code, access arrangements continue in effect from their start date until the network ceases to be covered. Access arrangements must, however, specify a date when the service provider will submit proposed revisions for consideration by the ERA.
Approved Access Arrangement for the SWIN
Western Power’s access arrangement for the first access arrangement period (2006/07 to 2008/09, "AA1") was approved by the ERA on 26 April 2007, to become effective from 1 July 2007. Revisions to this access arrangement for the second access arrangement period (2009/10 to 2011/12, "AA2") were approved by the ERA on 19 January 2010, to become effective from 1 March 2010.
Further information about the revisions can be found under access arrangement review process.
Variations to the Approved Access Arrangement for the SWIN
Subchapter 4.3 of the Access Code contains provisions that allow an approved access arrangement to be revised during the access arrangement period.
The following variations to Western Power’s AA2 access arrangement for the SWIN have been approved by the ERA.
Further information about these variations can be found under access arrangement variations.
Access Arrangement Information
An access arrangement refers to an arrangement for third party access to a covered network that has been approved by the ERA. The specific content of an access arrangement is outlined in Chapter 5 of the Access Code, while Chapter 4 sets out the approval and review process in detail. In general the approval process can be summarised as follows:
- The service provider submits a proposed access arrangement, to be published by the ERA together with a invitation for submissions from interested parties.
- The ERA may publish an issues paper to facilitate the public consultation process.
- The ERA publishes a draft decision approving or not approving the proposed access arrangement, and invites further submissions from interested parties.
- The service provider may include in its submission on a draft decision made by the ERA, a revised proposed access arrangement (if so, reference to a proposed access arrangement is read as if it was a reference to a revised proposed access arrangement).
- A final decision is published by the ERA approving or not approving the proposed access arrangement.
- If the proposed access arrangement is approved, the proposed access arrangement commences. If not approved the service provider may submit an amended proposed access arrangement.
- The ERA makes a further final decision to approve or not approve the amended proposed access arrangement (or previous proposed access arrangement if no amendment is submitted by the service provider).
- If the amended proposed access arrangement is approved, the amended proposed access arrangement commences. If not approved, the ERA must draft, approve, publish and advertise its own access arrangement.
Ringfencing
The Access Code provides for ringfencing arrangements to ensure that network service providers deal with related businesses and other associates on an arms-length, commercial basis. Chapter 13 of the Access Code gives the ERA powers to monitor and enforce these arrangements, including through the establishment of "ringfencing rules".
The ERA published a discussion paper on the development of ringfencing rules for electricity networks businesses. The ERA has since determined that it will defer further consideration of the development of ringfencing rules following the disaggregation of Western Power in April 2006.
