NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 8.16
NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 8.16
8.16
(a)
Subject to sections 8.16(b) and sections 8.20 to 8.22, the Capital Base
may be increased under section 8.15 by the amount of the actual New
Facilities Investment in the immediately preceding Access Arrangement Period
provided that:
(i)
that amount does not exceed the amount that would be
invested by a prudent Service Provider acting efficiently, in accordance with
accepted good industry practice, and to achieve the lowest sustainable cost of
providing Services; and
(ii)
one of the following conditions is satisfied:
(A) the Anticipated Incremental Revenue
generated by the New Facility exceeds the New Facilities Investment; or
(B) the Service Provider and/or Users
satisfy the Relevant Regulator that the New Facility has system‑wide
benefits that, in the Relevant Regulator's opinion, justify the approval of a
higher Reference Tariff for all Users; or
(C) the New Facility is necessary to
maintain the safety, integrity or Contracted Capacity of Services.
(b) If
pursuant to section 8.20 the Relevant Regulator agrees to Reference
Tariffs being determined on the basis of forecast New Facilities Investment,
the Capital Base may be increased by the amount of the New Facilities
Investment forecast to occur within the new Access Arrangement Period
determined in accordance with sections 8.20 and 8.21 and subject to
adjustment in accordance with section 8.22.
[Section 8.16 inserted: Gazette
2 May 2003 p. 1525.]