47EMaking revenue determinations for contestable augmentation—the Act, s 38(10)(a)

47E Making revenue determinations for contestable augmentation—the Act, s 38(10)(a)

47E Making revenue determinations for contestable augmentation—the Act, s 38(10)(a)

(1) The regulator must determine the amount for the components under the Act, section 38(2) for a revenue determination for a contestable augmentation in accordance with this clause.

(2) The regulator must determine the amount for the component in accordance with the regulator’s guidelines for contestable revenue determinations if—

(a) the costs of the component are derived as a result of a competitive assessment process, and

(b) the regulator is satisfied the competitive assessment process was genuine and appropriate.

(3) The regulator must determine the amount for the component by relying on and adopting information provided by the network operator or infrastructure planner if—

(a) subclause (2) does not apply to the component, and

(b) the regulator is satisfied—

(i) the existing contractual arrangements contain an appropriate referenced costs process, and

(ii) the amount is determined using the appropriate referenced costs process.

(4) The regulator must determine the amount for a component in accordance with the regulator’s guidelines for non-contestable revenue determinations if subclauses (2) and (3) do not apply to the component.

(5) The regulator, when making a determination under this clause, must take into account—

(a) the existing contractual arrangements, including incentive regimes in the contractual arrangements, and

(b) any other contract entered into by the network operator under an authorisation in relation to the contestable augmentation, including incentive regimes in the contract.

(6) A revenue determination for a contestable augmentation is made after each of the amounts for the components determined under this clause is added to make a single determination.

(7) In this clause—

appropriate referenced costs process means a mechanism in an existing contractual arrangement that the regulator is satisfied is appropriate for wholly or partially determining the amount for a component under a contestable augmentation.