The appropriateness of predetermining access pricing Sample Clauses

The appropriateness of predetermining access pricing substantially in advance The QCA has suggested that the linked access agreements should include a schedule that ‘hardwires’ access charges in the event that an asset is no longer declared. In forming this view the QCA has noted that a range of unregulated infrastructure providers employ a building blocks approach for determining access charges. The QCA’s approach is unworkable and has material adverse impacts on Aurizon Network for the following reasons:  Determining access charges substantially in advance or for long periods of time increases the likelihood that they will not be appropriate for the period to which they will apply. Setting them too high will result in Aurizon Network being uncompetitive. Setting the price too low will result in Aurizon Network and the Trust recovering inadequate returns. Determining access charges substantially in advance would adversely affect Aurizon Network and the Trust; their business interests are best served through determination of an appropriate access charge in response to the competitive and economic environment at the time.  The QCA Act does not allow the QCA to make an access determination now that has the effect of setting long term access charges that differ from the reference tariff, or that are intended to apply for a period where the service is unregulated.  The ‘regulated contract’ does not include the prescription of future access charges within a schedule to an access agreement. The relevant current regulated contracts are based on an approved standard access agreement and with adjustments to access charges over time by reference to amended or new reference tariffs approved by the QCA from time to time. It does not involve the specification of fixed long term access charges.  In the event of adverse market conditions the predetermination of access charges may have significant implications for competition in downstream markets and/or the profitability and commercial viability of above rail operators.  In most circumstances the access charges under linked access agreements will not relate exclusively to the SUFA assets, and the access charges for the use of some SUFA assets will be made under access agreements that are not linked access agreements. The predetermination of access charges as is proposed by the QCA could: o have significant implications on Aurizon Network where operating, maintenance costs and other risk events differ from the assumptions relied on for determining those access charges ...
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