Western Australian Current Regulations Western Australian Current Regulations An Incentive Mechanism
should be designed with a view to achieving the following objectives:
(a) to
provide the Service Provider with an incentive to increase the volume of sales
of all Services, but to avoid providing an artificial incentive to favour the
sale of one Service over another;
(b) to
provide the Service Provider with an incentive to minimise the overall costs
attributable to providing those Services, consistent with the safe and
reliable provision of such Services;
(c) to
provide the Service Provider with an incentive to develop new Services in
response to the needs of the market for Services;
(d) to
provide the Service Provider with an incentive to undertake only prudent New
Facilities Investment and to incur only prudent Non Capital Costs, and for
this incentive to be taken into account when determining the prudence of New
Facilities Investment and Non Capital Costs for the purposes of
section 8.16(a) and 8.37; and
(e) to
ensure that Users and Prospective Users gain from increased efficiency,
innovation and volume of sales (but not necessarily in the Access Arrangement
Period during which such increased efficiency, innovation or volume of sales
occur).
[Section 8.46 amended: Gazette
2 May 2003 p. 1526.]