Document ID: chunk:federal_register_of_legislation:F2020C00877:clause:2_2
Version: federal_register_of_legislation:F2020C00877
Segment Type: clause
Provision Reference: sch 2 cl 2
Character Range: 135359–137060

2  Determination of regulatory asset base for a regulatory period after the first Part 6 period
  The regulatory asset base of a Part 6 operator, for the purposes of the second or a subsequent regulatory period in relation to the operator as a Part 6 operator, is to be determined in accordance with the formula:

where:
A is the regulatory asset base of the operator determined under this Schedule in respect of the preceding regulatory period as calculated under either clause 1 or this clause, and adjusted as appropriate by replacing any forecast amounts in the calculations of that asset base by the amounts actually spent or received.
B is the total of the actual (or, in the case of the last year of the preceding regulatory period, 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 regulatory period, other than any expenditure that:
 (a) was made in relation to:
 (i) a major project not previously approved; or
 (ii) a project whose scope as undertaken materially differed from what was approved; or
 (iii) a project on which expenditure materially exceeded the amount previously approved; and
 (b) that the ACCC is not satisfied was prudent and efficient expenditure.
C is the regulatory depreciation in respect of assets used to provide infrastructure services in respect of each year of the preceding regulatory period.
D is the actual (or, where relevant, forecast) revenue received by the operator from disposal of assets used to provide infrastructure services in respect of each year of the preceding regulatory period.