Re Application by ElectraNet Pty Limited

ElectraNet Pty Limited applied to the Australian Competition and Consumer Commission (AER) for the inclusion of certain easement transaction costs in its regulatory asset base (RAB) for the electricity transmission system in South Australia. The AER determined that the costs were already included in the RAB and denied ElectraNet's request. ElectraNet sought to review the AER's decision by applying to the Australian Competition Tribunal (the Tribunal). The legal issues before the Tribunal were whether the Tribunal should grant leave for ElectraNet to apply for a review of the AER's decision, and if so, whether the AER erred in its findings of fact, exercised its discretion incorrectly, or made an unreasonable decision. The Tribunal held that the AER's decision was not unreasonable and that ElectraNet was unable to establish that the easement transaction costs were not already included in the RAB. The Tribunal found that the AER's finding that there was insufficient evidence to conclude that the costs were not already included in the RAB was not unreasonable, given the evidence before the AER. The Tribunal also held that it was not unreasonable for the AER to require ElectraNet to provide evidence of the exact nature and circumstances of the costs, including the fact that historical records of these costs were not available to ElectraNet. The Tribunal concluded that the AER's decision was reasonable and that there was no serious issue to be heard and determined as to whether a ground for review existed. Therefore, the Tribunal refused to grant leave for ElectraNet to apply for a review of the AER's decision.