INDEPENDENT PRICING AND REGULATORY TRIBUNAL ACT 1992 - SECT 14A Setting of methodology for fixing prices

INDEPENDENT PRICING AND REGULATORY TRIBUNAL ACT 1992 - SECT 14A

14A Setting of methodology for fixing prices

(1) A determination of the Tribunal of the methodology for fixing the price for a government monopoly service may be made in any manner the Tribunal considers appropriate, including, for example, by reference to maximum revenue, or a maximum rate of increase or minimum rate of decrease in maximum revenue, for a number of categories of the service concerned.

(2) In making such a determination, the Tribunal may have regard to such matters as it considers appropriate, including, for example, the following--

(a) the government agency's economic cost of production,

(b) past, current or future expenditures in relation to the government monopoly service,

(c) charges for other monopoly services provided by the government agency,

(d) economic parameters, such as--

(i) discount rates, or

(ii) movements in a general price index (such as the Consumer Price Index), whether past or forecast,

(e) a rate of return on the assets of the government agency,

(f) a valuation of the assets of the government agency,

(g) the need to maintain ecologically sustainable development (within the meaning of section 6 of the Protection of the Environment Administration Act 1991 ) by appropriate pricing policies that take account of all the feasible options available to protect the environment,

(h) the need to promote competition in the supply of the service concerned,

(i) considerations of demand management (including levels of demand) and least cost planning.

(3) In any report of such a determination, the Tribunal must indicate what regard it has had to the matters set out in subsection (2) in reaching that determination.