Application by APA GasNet Australia (Operations) Pty Limited (No 2)

The applicant, APA GasNet Australia (Operations) Pty Limited, sought judicial review of a decision by the Australian Energy Regulator (AER) regarding the access arrangements for natural gas pipeline systems. The case involved several legal issues concerning the application and interpretation of the National Gas Law (NGL) and the National Gas Rules (NGR). Specifically, APA GasNet contested the AER's handling of the transition of access arrangements, the calculation of reference tariffs under Rule 92 of the NGR, the adjustment for capital expenditure differences, the approval of a depreciation allowance, and the methodology for determining the rate of return on equity.

The court examined whether the previous access arrangement continued to operate until 30 June 2013, thereby negating any interval of delay for Rule 92 to apply. It also assessed if the adjustment for the difference in capital expenditure should include an adjustment for the revenue earned on that difference. Furthermore, the court reviewed the AER's discretion in approving the depreciation schedule and the correctness of the methodology and inputs used by the AER in determining the rate of return on equity.

In its reasoning, the court found that the previous access arrangement continued to operate until 30 June 2013, meaning no interval of delay existed for Rule 92 to apply. The court also held that the adjustment for capital expenditure differences should not include an adjustment for revenue earned on that difference. Regarding the depreciation schedule, the court concluded that the AER properly exercised its limited discretion and refused to approve the proposed schedule as it did not promote efficient growth in the market for reference services. The court further determined that the methodology and inputs used by the AER in calculating the rate of return on equity were not erroneous. Consequently, the court upheld the AER's decisions, finding no reviewable error.

As a result of the court's decision, the application was dismissed, and the Reviewable Decision of the AER was affirmed in all respects.