Constrained Network Ceiling Limit

The HVAU provides for Access revenue for any Access Holder or group of Access Holders to not exceed the Economic Cost of those Segments required for use by that Access Holder or group of Access Holders on a stand-alone basis. This is the Ceiling Limit. (Section 4.3(a) of the HVAU)

This constraint on Access revenue only applies for those Segments in Pricing Zone 3 where RAB is equal to, or falls below, the RAB Floor Limit at the end of the previous year. (Section 4.3(b) of the undertaking)

Where Access revenue is constrained by application of the Ceiling Limit, the relevant Segments form the Constrained Network. The Constrained Network is currently made up of Segments that are entirely within Pricing Zones 1 and 2. But note that some Segments within Pricing Zone 1 are unconstrained and that the extent of the Constrained Network may vary over time. Outside of the Constrained Network, Access revenue is unconstrained in the sense that revenue is not limited by the operation of the HVAU.

The Ceiling Limit for the Constrained Network has been determined under an annual compliance assessment conducted in accordance with the HVAU for the prior calendar year by the ACCC (refer Section 4.10 of the HVAU). This annual compliance assessment related to the 2012 calendar year. The Ceiling Limit for the Constrained Network as determined by the ACCC in that assessment for the calendar year is provided below.

Constrained Network Ceiling limit
The constrained network includes all network sectors used by coal and bounded by the Newcastle Ports, Muswellbrook and Ulan.
December 2012.

$246.64m

Further information in relation to the most recently approved Constrained Network and Ceiling Limit and the annual compliance assessment can be obtained from the ACCC website.

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