Commonwealth Consolidated Acts

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Pricing principles for access disputes and access undertakings or codes

                   The pricing principles relating to the price of access to a service are:

                     (a)  that regulated access prices should:

                              (i)  be set so as to generate expected revenue for a regulated service or services that is at least sufficient to meet the efficient costs of providing access to the regulated service or services; and

                             (ii)  include a return on investment commensurate with the regulatory and commercial risks involved; and

                     (b)  that the access price structures should:

                              (i)  allow multi-part pricing and price discrimination when it aids efficiency; and

                             (ii)  not allow a vertically integrated access provider to set terms and conditions that discriminate in favour of its downstream operations, except to the extent that the cost of providing access to other operators is higher; and

                     (c)  that access pricing regimes should provide incentives to reduce costs or otherwise improve productivity.

Note:          The Commission must have regard to the principles in making a final determination under Division 3 and in deciding whether or not to accept an access undertaking or access code under Division 6.

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