cover image: Developing a Regulatory Asset Base value for the Australian Rail Track Corporation Interstate Network, using the Depreciated Optimised Replacement Cost method

20.500.12592/3nqk0x

Developing a Regulatory Asset Base value for the Australian Rail Track Corporation Interstate Network, using the Depreciated Optimised Replacement Cost method

7 Oct 2021

After stakeholder consultation and consideration of the issues, the ACCC formed the view that a new DORC valuation of the Interstate Network was the most appropriate approach to setting the RAB for the replacement IAU.5 The ACCC sought an independent consultant to undertake a DORC valuation of the Interstate Network and determine a RAB following the valuation. [...] The ACCC considers that this balancing act of ensuring ARTC’s involvement in the process, and preserving the independence of the process, represents the approach most consistent with the statutory criteria for assessing a Part IIIA access undertaking.”6 1.4 Scope of GHD Advisory’s engagement The ACCC requires the provision of independent written advice, in the form of a report, on the value of ART. [...] The estimation of the residual life of the asset is a matter of judgement based on the experience of the asset owner with similar assets (because this reflects the actual operating conditions) and typically involves the review of asset condition data. [...] The depreciated replacement cost of the asset is evaluated by reducing the replacement cost of the asset, to the proportion of the asset’s remaining life to its useful life. [...] The location of the train and the method of communication of the train has moved to mobile networks and / or digital radio, with the mobile provider guaranteeing the Safety Integrity Level (SIL) of the communication system.

Authors

Jacqui Marshall

Pages
119
Published in
Australia