51Adjustment of amounts—the Act, ss 38(10)(f), 40 and 42

51 Adjustment of amounts—the Act, ss 38(10)(f), 40 and 42

51 Adjustment of amounts—the Act, ss 38(10)(f), 40 and 42

(1) A revenue determination may include provision for the adjustment of any amount included in the revenue determination, whether or not the amount relates to a capital cost.

(2) A provision in a revenue determination for adjustment may specify the following—

(a) that a particular adjustment must be carried out at particular times or in particular circumstances, including circumstances where network infrastructure to which the revenue determination relates is transferred,

(b) that a particular adjustment may or may not require the revenue determination to be reviewed and remade.

Example—

An adjustment may be made for inflation without a review or remake of the revenue determination. The occurrence of a significant event may require the revenue determination to be reviewed and remade.

(3) All adjustments, whether or not the revenue determination is reviewed and remade, must be carried out in accordance with—

(a) the guidelines issued under clause 47, and

(b) for a contestable revenue determination or a contestable component of a non-contestable revenue determination—the contractual arrangements the network operator entered into as required under the relevant authorisation, and

(c) for a revenue determination for a contestable augmentation—

(i) the existing contractual arrangements, and

(ii) for an amount determined under clause 47E(2)—another contract entered into by the network operator if—

(A) the contract is entered into under an authorisation in relation to the contestable augmentation, and

(B) the regulator is satisfied the contract was made following a genuine and appropriate competitive assessment process, and

(iii) for an amount determined under clause 47E(3)—adjustments set out in an appropriate referenced costs process.

(4) In reviewing and remaking a determination for the purposes of adjustment, the regulator may adopt, without recalculation, the existing capital costs calculated using the transmission efficiency test for the previous determination.