Victorian Consolidated Legislation

Essential Services Commission Act 2001 - SECT 33

Price determinations

33. Price determinations



(1) This section is subject to anything to the contrary in the empowering
instrument specifying the prescribed prices or prescribed goods and services
in respect of which the Commission is exercising its power of regulation.





(2) In making a price determination, the Commission must adopt an approach and
methodology which the Commission considers will best meet the objectives
specified in this Act and any relevant legislation.

(3) In making a determination under this section, the Commission must have
regard to-

   (a)  the particular circumstances of the regulated industry and the
        prescribed goods and services for which the determination is being
        made;

   (b)  the efficient costs of producing or supplying regulated goods or
        services and of complying with relevant legislation and relevant
        health, safety, environmental and social legislation applying to the
        regulated industry;

   (c)  the return on assets in the regulated industry;

   (d)  any relevant interstate and international benchmarks for prices, costs
        and return on assets in comparable industries;

   (e)  any other factors that the Commission considers relevant.

(4) In making a determination under this section, the Commission must ensure
that-

   (a)  the expected costs of the proposed regulation do not exceed the
        expected benefits; and

   (b)  the determination takes into account and clearly articulates any
        trade-offs between costs and service standards.

(5) A price determination by the Commission may regulate a prescribed price
for prescribed goods and services in any manner the Commission considers
appropriate.

(6) Without limiting the generality of subsection (5), the manner may include-

   (a)  fixing the price or the rate of increase or decrease in the price;

   (b)  fixing a maximum price or maximum rate of increase or minimum rate of
        decrease in the maximum price;

   (c)  fixing an average price for specified goods or services or an average
        rate of increase or decrease in the average price;

   (d)  specifying pricing policies or principles;

   (e)  specifying an amount determined by reference to a general price index,
        the cost of production, a rate of return on assets employed or any
        other specified factor;

   (f)  specifying an amount determined by reference to quantity, location,
        period or other specified factor relevant to the rate or supply of the
        goods or services;

   (g)  fixing a maximum average revenue or maximum rate of increase or
        minimum rate of decrease in the maximum average revenue in relation to
        specified goods or services;

   (h)  monitoring the price levels of specified goods and services.