sec.24Revenue and pricing principles relating to scheme pipelines

sec.24 Revenue and pricing principles relating to scheme pipelines

The revenue and pricing principles that apply in relation to a pipeline service provided by means of a scheme pipeline are the principles set out in subsections (2) to (7) . A scheme pipeline service provider should be provided with a reasonable opportunity to recover at least the efficient costs the service provider incurs in— providing reference services; and complying with a regulatory obligation or requirement or making a regulatory payment. A scheme pipeline service provider should be provided with effective incentives in order to promote economic efficiency with respect to reference services the service provider provides. The economic efficiency that should be promoted includes— efficient investment in, or in connection with, a pipeline with which the service provider provides reference services; and the efficient provision of pipeline services; and the efficient use of the pipeline. Regard should be had to the capital base with respect to a pipeline adopted— in any previous— access arrangement decision; or decision of a relevant Regulator under section 2 of the Gas Code; in the Rules. A reference tariff should allow for a return commensurate with the regulatory and commercial risks involved in providing the reference service to which that tariff relates. Regard should be had to the economic costs and risks of the potential for under and over investment by a scheme pipeline service provider in a pipeline with which the service provider provides pipeline services. Regard should be had to the economic costs and risks of the potential for under and over utilisation of a pipeline with which a scheme pipeline service provider provides pipeline services. s 24 amd 2022 No. 21 (SA) s 27 (sec.24-ssec.1) The revenue and pricing principles that apply in relation to a pipeline service provided by means of a scheme pipeline are the principles set out in subsections (2) to (7) . (sec.24-ssec.2) A scheme pipeline service provider should be provided with a reasonable opportunity to recover at least the efficient costs the service provider incurs in— providing reference services; and complying with a regulatory obligation or requirement or making a regulatory payment. (sec.24-ssec.3) A scheme pipeline service provider should be provided with effective incentives in order to promote economic efficiency with respect to reference services the service provider provides. The economic efficiency that should be promoted includes— efficient investment in, or in connection with, a pipeline with which the service provider provides reference services; and the efficient provision of pipeline services; and the efficient use of the pipeline. (sec.24-ssec.4) Regard should be had to the capital base with respect to a pipeline adopted— in any previous— access arrangement decision; or decision of a relevant Regulator under section 2 of the Gas Code; in the Rules. (sec.24-ssec.5) A reference tariff should allow for a return commensurate with the regulatory and commercial risks involved in providing the reference service to which that tariff relates. (sec.24-ssec.6) Regard should be had to the economic costs and risks of the potential for under and over investment by a scheme pipeline service provider in a pipeline with which the service provider provides pipeline services. (sec.24-ssec.7) Regard should be had to the economic costs and risks of the potential for under and over utilisation of a pipeline with which a scheme pipeline service provider provides pipeline services.