Victorian Consolidated Legislation

Essential Services Commission Act 2001 - SECT 35C

Pricing principles applying in respect of regulated access prices

35C. Pricing principles applying in respect of regulated access prices

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.