The ACCC issued its determination on Friday and said that NBN Co’s prices did not exceed the maximum regulated prices in 2015-16.The determination also included values for NBN Co’s actual capital and operating expenditure for 2015-16, as well as values for regulated assets and accumulated losses.
NBN Co has to make a submission to the ACCC each year on its allowable revenues to cover the costs of providing its services and the ACCC then assesses this against the methodology in the Special Access Undertaking.
And, the ACCC is required to make a determination on NBN Co’s revenue controls each year in accordance with the Long Term Revenue Constraint Methodology (LTRCM), which is set out in NBN Co’s SAU.
The SAU is a key component of the regulatory framework for the NBN and contains provisions designed to encourage NBN Co to incur expenditure efficiently.
“As the NBN’s rollout approaches a midway point, the ACCC’s has undertaken additional testing of the processes and procedures NBN Co has in place to ensure those costs are incurred in a prudent and efficient manner.”
The ACCC is now seeking stakeholder views on the draft determination, with submissions due by 26 May.