Sunday, 30 April 2017 16:33

Competition regulator says NBN service charges within price cap limits Featured


The Australian Competition and Consumer Commission has issued a draft determination that the operator of the National Broadband Network, NBN Co, have not exceeded price caps placed on what it charges for services under the Special Access Undertaking (SAU).

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.

“The ACCC’s draft decision is to accept NBN Co’s proposed values for determining allowable revenues for 2015-16,” ACCC chairman Rod Sims said.  

“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.

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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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