38Regulator to determine amount payable to or by network operators for network infrastructure projects

38 Regulator to determine amount payable to or by network operators for network infrastructure projects

38 Regulator to determine amount payable to or by network operators for network infrastructure projects

(1) The regulator is to determine the amount payable to a network operator to whom this Division applies.

(2) A determination is to include amounts for different components applicable to the relevant authorisation, including—

(a) repayment of capital costs as determined under the transmission efficiency test,

(b) the return on capital costs that have not been repaid,

(c) an allowance for operating costs,

(d) other components prescribed by the regulations.

(3) A determination may include provision for the adjustment of amounts on the basis of differences between the estimated and actual capital costs.

(3A) An adjustment provision included in a determination may provide that amounts may be payable by a network operator to the scheme financial vehicle in specified circumstances.

(3B) To avoid doubt—

(a) a provision of a determination about the adjustment of amounts may have effect after the expiry of the relevant authorisation, and

(b) if a provision in a determination about the adjustment of amounts requires a determination to be reviewed and remade, the following may occur after the expiry of the relevant authorisation—

(i) a determination may be remade,

(ii) a provision in a determination about the adjustment of amounts may have effect and provide for amounts to be payable by a network operator to the scheme financial vehicle.

(4) Before making a determination, the regulator is to calculate the prudent, efficient and reasonable capital costs of the network operator for development and construction of the network infrastructure project, which is referred to as the transmission efficiency test.

(5) The regulator is to publish guidelines on its website about the transmission efficiency test.

(6) If a determination relates to the amount payable to a network operator appointed under section 31A to carry out a REZ network infrastructure project, the amount calculated under subsection (4) must not exceed the difference between the maximum capital costs amount for the project and the sum of the following—