Australian Capital Territory Numbered Acts

INDEPENDENT PRICING AND REGULATORY (NO. 77 OF 1997) - SCHEDULE 2

    SCHEDULE 2     Paragraph 33 (4) (a)

ARBITRATION GUIDELINES

(COMPETITION PRINCIPLES cl. 6 (4) (i), (j) and (l))

Terms and conditions for access
(Competition Principles cl. 6 (4) (i))

1. The arbitrator shall take into account the following considerations in determining terms and conditions for access by the third party:

        (a)     the access provider's legitimate business interests and investment in the infrastructure facilities;

        (b)     the costs to the access provider of providing access—

              (i)     including any costs of extending the infrastructure facilities; and

              (ii)     not including any costs associated with losses from increased competition in upstream or downstream markets;

        (c)     the economic value to the access provider of any additional investment that the third party or the access provider has agreed to undertake;

        (d)     the interests of all persons holding contracts for use of the infrastructure facilities;

        (e)     the firm and binding contractual obligations of the access provider and any other persons using the infrastructure facilities;

        (f)     the operational and technical requirements necessary for the safe and reliable operation of the infrastructure facilities;

        (g)     the economically efficient operation of the infrastructure facilities;

        (h)     the benefit to the public from having competitive markets.

Extension of infrastructure
(Competition Principles cl. 6 (4) (j))

2. The arbitrator shall only make a determination requiring an access provider to extend the infrastructure facilities, or to permit the extension of the facilities, if the following conditions are met:

        (a)     the extension should be technically and economically feasible and consistent with the safe and reliable operation of the facilities;

        (b)     the access provider's legitimate business interests in the facilities should be protected;

        (c)     the terms of access for the third party should take account of the costs borne by each party for the extension and the economic benefits to each party resulting from the extension.

Impeding of existing rights
(Competition Principles cl. 6 (4) (l))

3. In making a determination that impedes an existing right of a person to use an infrastructure facility, the arbitrator—

        (a)     shall consider whether there is a case for compensation of that person; and

        (b)     if appropriate, include in the determination provision for that person to be compensated.