46Principles for regulator—the Act, s 37(1)(e)

46 Principles for regulator—the Act, s 37(1)(e)

46 Principles for regulator—the Act, s 37(1)(e)

(1) The following principles are prescribed—

(a) a genuine and appropriate competitive assessment process—

(i) results in the costs of carrying out an infrastructure project being prudent, efficient and reasonable, and

(ii) provides incentives to promote economic efficiency, and

(iii) results in revenue for the ongoing ownership, control and operation of the infrastructure project being commensurate with the regulatory and commercial risks,

(b) a network operator is entitled to recover the following—

(i) prudent, efficient and reasonable costs incurred by the network operator in complying with a regulatory requirement,

(ii) payments required to be made by the network operator to the infrastructure planner under a contractual arrangement, if the network operator was required to enter the contractual arrangement under the relevant authorisation,

(iii) reasonable costs incurred by the network operator, as assessed by the regulator, if the regulator fails to make a revenue determination within the time period specified in clause 50,

(c) an appropriate referenced costs process—

(i) results in the costs of carrying out an infrastructure project being prudent, efficient and reasonable, and

(ii) provides incentives to promote economic efficiency, and

(iii) results in revenue for the ongoing ownership, control and operation of the infrastructure project being commensurate with the regulatory and commercial risks.

(2) The regulator must, when assessing reasonable costs for the purposes of subclause (1)(b)(iii), take into account whether the network operator contributed to the delay.

(3) In this clause—

regulatory requirement, for a network operator, means a requirement imposed on the network operator by a relevant law but does not include a requirement to pay a fine, penalty or compensation for a breach of a requirement imposed on the network operator by a relevant law.

relevant law means the following—