12Contributed assets

12 Contributed assets

(1)  Prices for the provision of a regulated service are not to be set so as to allow for either of the following:

(a) a rate of return in respect of contributed assets;

(b) depreciation of contributed assets.

(2)  Despite subregulation (1) , prices for the provision of a regulated service are to be set so as to allow for the recovery of expenses incurred by a regulated entity in respect of the operation or maintenance of a contributed asset.

(3)  Subregulation (1) does not apply in relation to a contributed asset of a regulated entity that has been –

(a) transferred, granted, or given by way of a gift, to the regulated entity by the Crown or an emanation of the Crown, after 22 September 2011; or

(b) constructed by the regulated entity using funds provided by the Crown or an emanation of the Crown after 22 September 2011 –

if the arrangement or transaction under which the asset became an asset of the entity specifies that the return on the assets is to be not more than a rate that reflects the regulatory and commercial risks involved in providing the regulated service.