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NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 8.9

NATIONAL THIRD PARTY ACCESS CODE FOR NATURAL GAS PIPELINE SYSTEMS - REG 8.9

8.9

                Sections 8.15 to 8.29 then describe the principles to be applied in adjusting the value of the Capital Base over time as a result of additions to the capital assets that are used to provide Services and as a result of capital assets ceasing to be used for the delivery of Services. Consistently with those principles, the Capital Base at the commencement of each Access Arrangement Period after the first, for the Cost of Service methodology, is determined as:

            (a)         the Capital Base at the start of the immediately preceding Access Arrangement Period; plus

            (b)         subject to sections 8.16(b) and sections 8.20 to 8.22, the New Facilities Investment or Recoverable Portion (whichever is relevant) in the immediately preceding Access Arrangement Period; less

            (c)         Depreciation for the immediately preceding Access Arrangement Period; less

            (d)         Redundant Capital identified prior to the commencement of that Access Arrangement Period,

                and for the IRR or NPV methodology, is determined as:

            (e)         subject to sections 8.16(b) and sections 8.20 to 8.22, the Residual Value assumed in the previous Access Arrangement Period; less

            (f)         Redundant Capital identified prior to the commencement of that Access Arrangement Period,

                subject, irrespective of which methodology is applied, to such adjustment for inflation (if any) as is appropriate given the approach to inflation adopted pursuant to section 8.5A.

        [Section 8.9 amended: Gazette 7 January 2000 p. 62; 2 May 2003 p. 1524-5.]