The Australian Competition and Consumer Commission has issued a final determination on NBN Co’s revenue controls for 2014-15. It has also determined that NBN Co’s prices did not exceed maximum regulated prices during the 2014-15 financial year.
The ACCC is required to make annual determinations on NBN Co’s revenue controls in accordance with the Long Term Revenue Constraint Methodology (the LTRCM), which is set out in NBN Co’s special access undertaking (the SAU). The SAU is a key component of the regulatory framework for the National Broadband Network (NBN).
The purpose of the revenue controls is to ensure NBN Co has the opportunity to recover its long-term costs over the duration of the SAU and those costs are incurred in a prudent and efficient manner.
“The ACCC is satisfied that the values proposed by NBN Co for 2014-15 for determining allowable revenues for 2014-15 are consistent with the revenue control provisions in the SAU,” ACCC Commissioner Cristina Cifuentes said.
The final determination follows the ACCC’s March draft determination, which proposed to accept NBN Co’s proposal. The ACCC has also confirmed its view that NBN Co’s prices did not exceed the applicable maximum regulated prices in 2014-15. It has also finalised an amendment to the 2013-14 determination to correct for a minor error in NBN Co’s submission for that year.
The ACCC has published its final determination and its reasons for making this final determination on its website.