The Australian Competition and Consumer Commission (ACCC) has accepted nbn’s submission on its revenue controls for 2015-16 in a draft determination, with the view that nbn’s prices did not exceed the maximum regulated prices during this time.
nbn must make a submission to the ACCC each year on its allowable revenues to cover the costs of providing its services. The ACCC then assesses this against the methodology in the Special Access Undertaking.
“The ACCC’s draft decision is to accept NBN Co’s proposed values for determining allowable revenues for 2015-16. 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,” ACCC Chairman Rod Sims said.
This draft decision includes values for nbn actual capital and operating expenditure for 2015-16, as well as values for regulated assets and accumulated losses.
The Special Access Undertaking (SAU) also caps the prices that nbn is allowed to charge for its services, and sets out the process for pricing new products.
As part of this process, nbn is required to certify that its prices have not exceeded these caps.
The outcome of the ACCC’s assessment of the prices that nbn charged for its services in 2015-16 is that these prices did not exceed the applicable maximum regulated prices in the SAU.