Aurizon Holdings Ltd UT5+ Advances After QCA Preliminary Assessment
Aurizon’s UT5+ moves a step closer to approval after QCA preliminary assessment
The Queensland Competition Authority (QCA) has released its preliminary assessment of Aurizon Holdings‘s 2025 UT5 Draft Amending Access Undertaking (UT5+), providing a pathway to final approval. The development, announced on 24 June 2026, marks a step forward in determining the access and pricing arrangements for the Central Queensland Coal Network.
UT5+ governs access and pricing for the network over the period 1 July 2027 to 30 June 2037, a decade-long regulatory framework. The undertaking was submitted to the QCA with strong customer support in December 2025.
For investors, the preliminary assessment signals regulatory progress toward locking in the terms for the next ten years.
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What the draft decision endorsed — and what’s still outstanding
The QCA’s draft decision indicates that, for the material part, the proposed undertaking is appropriate. The endorsed elements include:
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The Weighted Average Cost of Capital methodology
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The accelerated depreciation profile
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The throughput payment
Consistent with its process, the QCA has not approved UT5+ at this stage. This is primarily due to its preliminary view on the proposed operating expenditure allowance and to enable stakeholders to make further submissions.
Importantly, the draft decision specifies the process for Aurizon to address the outstanding matters for the QCA’s consideration, providing a defined pathway rather than a setback.
| Element | QCA Preliminary View |
|---|---|
| WACC methodology | Appropriate |
| Accelerated depreciation profile | Appropriate |
| Throughput payment | Appropriate |
| Operating expenditure allowance | Outstanding — further submissions invited |
With the bulk of the commercial framework endorsed, the remaining issue centres on the operating expenditure allowance, which the QCA has flagged as addressable through the defined submission process.
Understanding access undertakings and why UT5+ matters to investors
An access undertaking is a regulated framework set by the QCA that governs how Aurizon can charge its customers for using the Central Queensland Coal Network. It establishes the rules around pricing and access for the rail infrastructure.
A 10-year undertaking matters because it provides long-term certainty for the regulated network business.
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What happens next
The QCA has set out a defined process toward a final decision. Aurizon is expected to address the outstanding operating expenditure matter through the submission process specified in the draft decision.
Key Date
Stakeholder submissions are invited by 20 August 2026, ahead of the QCA’s final decision.
With the process clearly mapped and the material part of the undertaking already endorsed at the preliminary stage, UT5+ continues progressing toward final approval. The defined timeline gives investors a near-term milestone to watch.
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