29ACCC to determine or approve infrastructure charges

29 ACCC to determine or approve infrastructure charges

(1) The ACCC, after considering submissions received before the date specified in the notice published under paragraph 28 (b), must, subject to subrule (2), determine or approve the infrastructure charges set out in the application under this Division. (2) The ACCC must not approve the infrastructure charges set out in an application under this Division unless the ACCC is satisfied: (a) that the determination of the Part 6 operator’s regulatory asset base used to calculate those charges (where relevant) is in accordance with Schedule 2; and (b) that the forecast revenue from the charges is reasonably likely to meet, but not materially exceed, the prudent and efficient costs of providing the infrastructure services, less: (i) any government contributions related to the provision of those infrastructure services; and (ii) any amount reflecting a direction by a government forgoing a return on its share of capital in an infrastructure operator; and (iii) any revenue (other than from infrastructure charges) derived from the water service infrastructure used to provide infrastructure services; and (c) that the infrastructure charges contained in the application are otherwise consistent with the requirements in other provisions of these Rules.

Note: There are relevant provisions in other Parts as well as in Part 6.

(3) If the ACCC is not satisfied as to the matters referred to in subrule (2), the ACCC must determine the infrastructure charges on the basis of the Part 6 operator’s regulatory asset base determined in accordance with Schedule 2 (where relevant) and so as to be satisfied as to the matters referred to in paragraphs (2)(b) and (c). (3A) If the ACCC is satisfied that: (a) there is sufficient uncertainty about the cost, timing, necessity, likelihood or feasibility of a capital expenditure project proposed by the Part 6 operator in its application; and (b) the inclusion of the proposed capital expenditure project would have a material impact on the infrastructure charges to be determined or approved; the infrastructure charges must be determined on the basis that funding the capital expenditure project would not be a prudent and efficient cost of providing the infrastructure services.

Note: The ACCC may otherwise assess the costs relating to proposed capital expenditure as not being prudent and efficient for the purposes of paragraph 29(2)(b)—see subrule 31(1A) and Division 4.

(4) In determining or approving infrastructure charges under this rule, the ACCC must have regard to whether the infrastructure charges would contribute to achieving the Basin water charging objectives and principles set out in Schedule 2 of the Act.