Draft Decision - TAHE's compliance with the NSW Rail Access Undertaking 2021-22 - January 2023

We are seeking feedback on our draft decisions and recommendation

Our draft decisions are that:

• TAHE has complied with the ceiling test for its Metropolitan Passenger Network.
• TAHE has complied with the ceiling test for the Hunter Valley Coal network.
• TAHE has complied with the asset valuation roll forward principles in the NSW Rail Access Undertaking for its Hunter Valley coal network in 2021-22.
• TAHE has demonstrated to IPART’s reasonable satisfaction that access revenue for each non‑Hunter Valley coal freight sector was no more than 80% of the full economic cost of providing access.

We made draft recommendations that:

• TAHE complete their unders and overs account policy in consultation with access seekers and submit it to IPART for approval as required under clause 4(t) of Schedule 3 of the Undertaking by 31 March 2023.

Under and overs account balance has decreased for the Hunter Valley Coal Network

At the end of the 2021-22 financial year, TAHE has $6 million owing to rail users as a result of customers being charged too much in previous years. However, this over-recovery has reduced from $8.8 million at the end of 2020-21 due to:

• TAHE continuing to charge customers less than the costs of providing access during the 2021-22 financial year
• An upward adjustment to the costs of providing rail access since 2015-16 due to the inclusion of a tax allowance which should have previously been included.