The ACCC has adopted a domestic benchmarking approach to determining regulated DTCS prices. This approach uses a benchmarking model, based on prices and other characteristics of competitive transmission routes, to set prices on regulated routes. The benchmarking model was developed by the ACCC’s consultant, Economic Insights. The model is based on commercial pricing data supplied by transmission providers and has been refined through extensive consultation with stakeholders.
The draft decision sets out the ACCC’s approach to pricing the DTCS, its regression analysis and the preferred pricing model used to determine the primary price terms for the DTCS.
The draft decision also sets out the ACCC’s approach to supplementary price terms. The ACCC has published Economic Insights’ report and a draft DTCS FAD pricing calculator along with the draft decision for consultation.
The ACCC invited submissions to the draft decision by 9 October 2015.