Maintenance and 2020 onwards as a continuous yearly cost improvement of PAYGO. Assume around $50,000 is spent each year between charging determinations on external consultant research to support a methodology review. [Consultants: annual review: $50,000] 1 FTE each year to undertake maintenance and monitoring activities (such as annual adjustments) PAYGO model is between retained, maintained determinations. and improved over [Maintenance and time monitoring: $175,000] A formal 2019 onwards as a methodology review cost every 5 years of the NTC charging model (e.g. cost allocators, other assumptions, calculation approach) is undertaken; estimated to require 2 NTC FTEs over a 12-month period. [Enhancement cost—formal methodology review every 5 years: $350,000] Source: Discussions with NTC, information from and territory governments and Marsden Jacob analysis. Key assumptions used to estimate costs under Reform option A Based on interviews and data collected from the ACCC and state and territory governments, the key assumptions used to estimate the costs under Reform option A are set out in Table 14. Table 14 describes the cost and its estimation approach as well as the label and values shown in the Option A cost table (Table 18). It should also be noted that all costs and results have been rounded to the nearest $1,000 to avoid a misperceived level of precision.
PAYGO model is retained, maintained and improved over time Maintenance and continuous improvement of PAYGO. Assume around $50,000 is spent each year between charging determinations on external consultant research to support a methodology review. [Consultants: annual review: $50,000] 1 FTE each year to undertake maintenance and monitoring activities (such as annual adjustments) between determinations. [Maintenance and monitoring: $175,000] 2020 onwards as a yearly cost A formal methodology review of the NTC charging model (e.g. cost allocators, other assumptions, calculation approach) is undertaken; estimated to require 2 NTC FTEs over a 12-month period. [Enhancement cost—formal methodology review every 5 years: $350,000] 2019 onwards as a cost every 5 years Source: Discussions with NTC, information from and territory governments and Marsden Jacob analysis. Key assumptions used to estimate costs under Reform option A Based on interviews and data collected from the ACCC and state and territory governments, the key assumptions used to estimate the costs under Reform option A are set out in Table 14. Table 14 describes the cost and its estimation approach as well as the label and values shown in the Option A cost table (Table 18). It should also be noted that all costs and results have been rounded to the nearest $1,000 to avoid a misperceived level of precision.
consultation_ris_-_hvrr_phase_2_-_independent_price_regulation_of_heavy_vehicle_charges.docx