A Reference Tariff and
Reference Tariff Policy should be designed with a view to achieving the
providing the Service Provider with the opportunity to earn a stream of
revenue that recovers the efficient costs of delivering the Reference Service
over the expected life of the assets used in delivering that Service;
replicating the outcome of a competitive market;
ensuring the safe and reliable operation of the Pipeline;
distorting investment decisions in Pipeline transportation systems or in
upstream and downstream industries;
efficiency in the level and structure of the Reference Tariff; and
providing an incentive to the Service Provider to reduce costs and to develop
the market for Reference and other Services.
To the extent that any
of these objectives conflict in their application to a particular Reference
Tariff determination, the Relevant Regulator may determine the manner in which
they can best be reconciled or which of them should prevail.