The ACCC has issued a draft determination on NBN Co’s Long Term Revenue Constraint Methodology (LTRCM). Stakeholders are invited to make submissions on the LTRCM draft determination by 5pm on Friday 27 March 2015.
NBN Co’s LTRCM proposal sets out the values and calculations required to determine the amount of revenue NBN Co is allowed to earn each financial year to recover its costs of providing services. Where NBN Co is unable to recover the allowed revenue in a particular year, any shortfall is put into NBN Co’s cost recovery account. NBN Co will have the opportunity to recover its accumulated losses over time as the take-up of NBN services increases. The values required for the LTRCM proposal include NBN Co’s actual capital and operating expenditures, the net value of NBN Co’s regulated assets and NBN Co’s accumulated losses.
NBN Co's Special Access Undertaking (SAU) issued under theCompetition and Consumer Act 2010 establishes part of the regulatory framework for the National Broadband Network (NBN). NBN Co is required to make the LTRCM proposal under its SAU.