Long Term Revenue Constraint Methodology 2020-213 Nov 2021
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 29 October 2021, NBN Co lodged its submission of regulatory information for 2020-21, 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 2020-21 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 2021, 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 2020-21 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.
Draft determination
On 6 April 2022, the 糖心原创 published its LTRCM draft determination for 2020-21, 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 2020-21 financial year satisfies the requirements outlined in the SAU. The 糖心原创 proposes to accept NBN Co鈥檚 values for the annual building block revenue requirement, regulatory asset base and the initial cost recovery account. We are also satisfied that NBN Co has complied with the relevant price controls in the SAU.
The 糖心原创 welcomes submissions from interested parties on the LTRCM draft determination, which also sets out our proposed approach to correct a typographical error in last year's LTRCM determination.
Submissions were due by 5 pm on 13 May 2022.
Final determination
On 22 June 2022, the 糖心原创 published its final determination on NBN Co鈥檚 LTRCM and decision on price compliance for 2020-21.
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 Special Access Undertaking (SAU).
The 糖心原创 is also satisfied that NBN Co鈥檚 prices for 2020-21 did not exceed the maximum regulated prices as set out in the SAU.
As noted in the draft decision, and consistent with the relevant provisions in the SAU, the 糖心原创 has also corrected a typographical error in the 2019-20 LTRCM final determination as part of this LTRCM consultation process. The correction, and reasons for the 糖心原创鈥檚 decision, are set out in section 3 of the 2020-21 LTRCM final determination.