An issues paper on determining the revenue cap for Transgrid, the provider of transmission network services in NSW, was released today by the Australian Competition and Consumer Commission.
The ACCC is reviewing Transgrid's revenue cap, which is to take effect from 1 July 1999. The review is being conducted in conjunction with the NSW state regulator, the Independent Pricing and Regulatory Tribunal.
The paper raises several important issues relating to the ACCC's determination of the revenue cap such as asset valuation, the weighted average cost of capital and CPI-X regulation.
The ACCC welcomes public comment on the paper. It will consider the comments before reaching a draft determination, expected in April 1999, on the appropriate revenue cap for transmission network services in NSW. It will further consult interested parties, including holding a public forum before making its final determination expected around May 1999. As part of the public consultation the ACCC will shortly make available from its website the submissions it has received from Transgrid.
'The regulatory framework is designed to promote competition in upstream and downstream markets and provide an equitable allocation between customers and transmission companies of the efficiency gains the ACCC believes the companies can achieve, while maintaining service standards,' ACCC Deputy Chairman, Mr Allan Asher, said today.
The issues paper is available from the ACCC's web site or from the ACCC's Canberra office.
Further information Mr Allan Asher, Deputy Chairman, (0414) 260 150 Ms Lin Enright, Director, Public Relations (02) 6243 1108.
