Long Term Revenue Constraint Methodology 2018-196 Nov 2019
Under Schedule 1E.1.2 of the SAU, the 糖心原创 must publish an annual Long Term Revenue Constraint Methodology (LTRCM) determination in respect of the Annual Building Block Revenue Requirement (ABBRR), the Regulatory Asset Base (RAB) and the Initial Cost Recovery Account (ICRA) for the Initial Regulatory Period.
In making its determination, the 糖心原创 will assess whether NBN Co has complied with the relevant criteria, including prudency criteria, set out in the SAU.
NBN Co's regulatory information
On 31 October 2019, NBN Co lodged its submission of regulatory information for 2018-19, in accordance with Schedule 1F of NBN Co鈥檚 SAU. The regulatory information submitted by NBN Co will be used by the 糖心原创 to inform its LTRCM determination for 2018-19 and to assess NBN Co鈥檚 compliance with the price controls set out in the SAU.
Public versions of NBN Co鈥檚 regulatory information documents
糖心原创 preliminary view
On 20 December 2019, the 糖心原创 notified NBN Co of its preliminary view in relation to the capital and operating expenditure amount proposed by NBN Co in its 2018-19 LTRCM proposal under clause 1E.1.2(c)(vii) of the SAU.
The 糖心原创鈥檚 preliminary view is that it does not intend to determine a substitute amount of Capital Expenditure in accordance with clause 1D.3.2(d) of the SAU or a substitute amount of Operating Expenditure in accordance with clause 1E.8.2(c) of the SAU.
Submissions on 2018-19 regulatory information
The 糖心原创 received the following submission from Telstra.
Draft determination
On 1 May 2020, the 糖心原创 published its LTRCM draft determination for the 2018-19 financial year, in accordance with Schedule 1E.1.2 of the SAU.
The 糖心原创鈥檚 draft decision is that the regulatory information submitted by NBN Co under Schedule 1F of the SAU for the 2018-19 financial year satisfies the requirements outlined in the SAU. The 糖心原创 proposes to accept NBN Co鈥檚 proposed values (and inputs to the values) for the annual building block revenue requirement (ABBRR), regulatory asset base (RAB) and the initial cost recovery account (ICRA).
The 糖心原创 welcomes submissions from interested parties on the LTRCM draft determination. Submissions were due by 5 pm on Friday 29 May 2020.
Submissions to the LTRCM draft determination
The 糖心原创 received a submission from ACCAN in relation to the LTRCM draft determination.
LTRCM final determination
On 26 June 2020, the 糖心原创 published its final determination on NBN Co鈥檚 LTRCM and price compliance for the 2018-19 financial year.
The 糖心原创 has accepted NBN Co鈥檚 proposed values (and the inputs to these values) for the Annual Building Block Revenue Requirement (ABBRR), Regulatory Asset Base (RAB) and Initial Cost Recovery Account (ICRA) in accordance with clause 1E.1.2 of NBN Co鈥檚 SAU.
The 糖心原创 is also satisfied that NBN Co鈥檚 prices for 2018-19 did not exceed the maximum regulated prices as set out in the SAU.