INDEPENDENT PRICING AND REGULATORY TRIBUNAL ACT 1992 - SECT 16A Passing through efficient costs in price determinations

INDEPENDENT PRICING AND REGULATORY TRIBUNAL ACT 1992 - SECT 16A

16A Passing through efficient costs in price determinations

(1) The portfolio Minister for a government agency may direct the Tribunal, when it makes a determination of the maximum price for a government monopoly service provided by the agency, to include in the maximum price an amount representing the efficient cost of complying with a specified requirement imposed on the agency.

(2) The portfolio Minister for a government agency may direct the Tribunal, when it makes a determination of the methodology for fixing the maximum price for a government monopoly service provided by the agency, to include in the methodology a factor representing the efficient cost of complying with a specified requirement imposed on the agency.

(3) Such a requirement may only be a requirement imposed by or under a licence or authorisation, a requirement imposed by a ministerial direction under an Act, or some other requirement imposed by or under an Act or statutory instrument.

(3A) A portfolio Minister may give a direction to the Tribunal under this section only if--

(a) the portfolio Minister has consulted with the Tribunal on the proposed direction before giving the direction, and

(b) the Minister administering this Act has approved the direction.

(4) The Tribunal is required to comply with a direction under this section.

(5) In its report, the Tribunal is required to set out the terms of the direction and to include an explanation of the manner in which it has complied with the direction.