Apa Group · ASX:APA
Apa — Corporate Update (December 2020)
18 slides from Apa's corporate update, Dec 15, 2020
Slide 1: Amadeus Consumer Reference Group 2021–26 access arrangement revision
Amadeus Consumer Reference Group 2021–26 access arrangement revision Roundtable 5. AER Draft Decision Tuesday 15 December 2020 via Microsoft Teams
Slide 2: Agenda for today
Agenda for today Agenda item Content Timing 1 Welcome 5 mins 2 Purpose and update 10 mins 3 AER Draft Decision 40 mins • Overview • A small change in proposed reference services • A small difference in total revenue • Key aspects of the proposal accepted by the AER • AER required amendments • Pipeli
Slide 3: Acknowledgement of traditional custodians
Acknowledgement of traditional custodians We would like to begin by acknowledging the traditional custodians of country throughout Australia and their continuing connection to land and community. We pay our respect to them and their cultures, and to the elders both past and present.
Slide 4: Welcome & house rules
Welcome & house rules • House rules • The online format has been introduced due to COVID-19 • This is intended be an open discussion between the reference group and APA • We welcome any issue or question about the access arrangement and its context • The main rule we propose is that the discussions
Slide 5: Purpose and update
Purpose and update 5
Slide 6: Purpose and update
Purpose and update • The Australian Energy Regulator’s Draft Decision on the Amadeus Access Arrangement revision proposal was issued on 27 November 2020. • Our response to the Draft Decision is to be in the form of a revised proposal; this revised proposal must be submitted to the AER by 15 January
Slide 7: AER Draft Decision
AER Draft Decision 7
Slide 8: Overview of AER Draft Decision
Overview of AER Draft Decision • Key themes of the Draft Decision were: • ensuring consumers pay no more than they need for safe and reliable gas services • interest from stakeholders in expanding the capacity on the Amadeus Gas Pipeline • AER said: • Amadeus’s consumer engagement has indicated that
Slide 9: A small change in proposed reference tariffs
A small change in proposed reference tariffs • That the amendments to our access arrangement revision proposal are matters of detail, and are all relatively minor, can be seen in the AER’s decision on the proposed reference tariffs. • The small change reference tariffs is a consequence of a small di
Slide 10: A small difference in total revenue
A small difference in total revenue • AER accepted our capacity and throughput forecasts for the Amadeus Gas Pipeline. • The small change reference tariffs is a consequence of a small difference between the total revenue of our revision proposal, and the total revenue determined by the AER for its D
Slide 11: Key aspects of our proposal accepted by the AER
Key aspects of our proposal accepted by the AER • Proposed CAPEX 2021-26 is approved as conforming. • Application of the current rate of return instrument is accepted. • Amadeus’s OPEX forecast is accepted: meets the OPEX criteria, and rule requirements for forecasts. • Use of the PTRM to estimate t
Slide 12: AER required amendments
AER required amendments Revision Required amendment Roll forward of capital base from • Report capitalized value of leased assets in accordance with AASB 16. 2016-21 • Replace estimated CAPEX for 2019-20 with actual CAPEX. • Update estimate of CAPEX for 2020-21. Projected capital base 2021-26
Slide 13: Pipeline expansion
Pipeline expansion • The Draft Decision referred to interest in additional capacity in the Amadeus Gas Pipeline. • Although we did not include pipeline expansion in our revision proposal, the Draft Decision advised that the AER could consider expansion as part of the revised proposal to be submitted
Slide 14: Next steps and wrap up
Next steps and wrap up 14
Slide 15: Next steps
Next steps • In its Draft Decision, the AER has largely accepted our proposed revisions to the Amadeus Access Arrangement: we see the 15 amendments required for the revision proposal to be acceptable to the AER to be relatively minor. • We expect to make all of the 15 amendments, and to submit a rev
Slide 16: Next steps
Next steps • Our submission of a revised proposal does not close your opportunity to comment: stakeholders are invited to make submissions to AER on both draft decision and our revised proposal by 23 February 2021. • The AER has indicated that it expects to make a final decision on proposed revision
Slide 17: Wrap up
Wrap up • Summary of the discussion today • Invite comments from participants Thank you for participating Wishing everyone a safe, peaceful and happy Christmas. See you in 2021! 17
Slide 18: For further information contact
For further information contact: Or visit the APA website: John Williams apa.com.au Manager Regulatory +61 8 6189 4594 john.williams@apa.com.au Or Amadeus engagement webpage: apa.com.au/about-apa/our- Nives Matosin projects/amadeus-gas-pipeline- Manager Regulatory access-arrangement/. +61 2 9693 008