Document ID: chunk:federal_register_of_legislation:F2020C00877:clause:2_1
Version: federal_register_of_legislation:F2020C00877
Segment Type: clause
Provision Reference: sch 2 cl 1
Character Range: 133492–135359

1  Determination of regulatory asset base for first Part 6 period
  The regulatory asset base of a Part 6 operator, for the purposes of the first regulatory period under these Rules in relation to the operator as a Part 6 operator (first Part 6 period):
 (a) in the case of an operator whose fees and charges were determined by an agency of a State under a law of the State in respect of the period immediately before the first Part 6 period (preceding period), is to be determined in accordance with the formula:

  where:
  A is the value of the operator's assets at the beginning of the preceding period.
  B is the value of such of those assets that were not used by the operator to provide infrastructure services during the preceding period and any assets contributed by customers or government.
  C is the actual (or, where relevant, forecast) capital expenditure on assets used by the operator to provide infrastructure services (net of actual customer and government capital expenditure contributions) in respect of each year of the preceding period, other than any expenditure that:
 (i) was made in relation to:
 (A) a major project not previously approved; or
 (B) a project whose scope as undertaken materially differed from what was approved; or
 (C) a project on which expenditure materially exceeded the amount previously approved; and
 (ii) the ACCC is not satisfied was prudent and efficient expenditure.
  D is the regulatory depreciation in respect of assets used to provide infrastructure services (as determined for each year of the preceding period).
  E is the actual (or, where relevant, forecast) revenue received by the operator from disposal of assets used to provide infrastructure services in the preceding period; and
 (b) in the case of any other Part 6 operator, is to be determined by applying a recognised valuation methodology.