41Pricing principles

#### 41 Pricing principles 41 Pricing principles > > (1) For the purposes of this Part— > > > > > (a) IPART must have regard to the pricing principles when deciding whether or not to approve an access undertaking for an infrastructure service, and > > > > > (b) an arbitrator must have regard to the pricing principles when determining a dispute in relation to the pricing of access to an infrastructure service the subject of a coverage declaration. > > > (2) For the purposes of this section, the pricing principles in relation to any infrastructure service are as follows— > > > > > (a) the price of access should generate expected revenue for the service that is at least sufficient to meet the efficient costs of providing access to the service, and include a return on investment commensurate with the regulatory and commercial risks involved, > > > > > (b) the price of access should allow multi-part pricing and price discrimination when it aids efficiency, > > > > > (c) the price of access should not allow a vertically integrated service provider to set terms and conditions that discriminate in favour of its downstream operations, except to the extent to which the cost of providing access to other operators is higher, > > > > > (d) the price of access should provide incentives to reduce costs or otherwise improve productivity. > > > (3) These principles must be implemented in a manner that is consistent with any relevant pricing determinations for the supply of water and the provision of sewerage services, including (where applicable) the maintenance of “postage stamp pricing” (that is, a system of pricing in which the same kinds of customers within the same area of operations are charged the same price for the same service).