A draft determination has been issued by the Australian Competition and Consumer Commission (ACCC) in which it has accepted a submission from nbn regarding the latter’s revenue controls for 2015/16. In a press release the regulator revealed that, with the draft decision including values for nbn’s actual capital and operating expenditure for 2015/16, as well as values for regulated assets and accumulated losses, it had determined the company’s prices did not exceed the maximum regulated prices in the period covered.
nbn, the company overseeing Australia’s National Broadband Network (NBN) project, is required to make a submission each year to the ACCC regarding its allowable revenues, as they relate to covering the costs of providing its services. For the regulator’s part, it then assesses this submission against the methodology in nbn’s Special Access Undertaking (SAU), which caps the prices that the company can charge for its services, and sets out the process for pricing new products.
Feedback regarding the draft determination from interested parties has now been invited, with a deadline of 26 May 2017 set for submissions.
Commenting on the matter, ACCC chairman Rod Sims said: ‘The ACCC’s draft decision is to accept [nbn’s] proposed values for determining allowable revenues for 2015/16. As the NBN’s rollout approaches a midway point, the ACCC has undertaken additional testing of the processes and procedures [nbn] has in place to ensure those costs are incurred in a prudent and efficient manner.’