The QCA developed a Statement of Regulatory Pricing Principles to use in its work when regulating some monopoly activities.
The regulatory pricing principles are used:
- to guide specific decisions about the level and structure of prices
- as the basis for developing more detailed principles for particular sectors.
The Statement of Regulatory Pricing Principles was released on 22 August 2013. The paper sets out updated broad pricing principles, to apply to QCA’s economic regulation of the water, rail and ports industries in Queensland.
The paper also reviews the economic and non-economic objectives the QCA considers when making regulatory decisions. Efficiency, fairness and trade-offs between objectives are weighed.
The QCA’s discussion paper on the regulatory objectives and the design and implementation of pricing principles was published on 26 April 2013. It updated and expanded on pricing principles previously applied by the QCA.
The QCA received submissions from four interested parties.
The discussion paper was finally revised to become the Statement of Regulatory Pricing Principles.
Previous pricing principles guidelines have focused mainly on the economic efficiency aspects of regulation.
The QCA’s Statement of Regulatory Pricing Principles considers not only economic efficiency but also incorporates principles of risk, fairness and regulatory governance.