ACCC Assumed to Ongoing costs, every 2 years estimate was be 0.5 FTEs 20% of AER per state and Networks territory Ongoing Branch (total government. budget of [Ongoing resources to which is $6–7 resources to allow million). allow additional [Ongoing additional scrutiny assessment scrutiny: cost: increased $1,400,000] scrutiny: $1,300,000] Undertaking Any Ongoing costs, every year reviews of additional road maintenance managers’ and capital achieved and expenditure to committed improve road levels of quality is service, based included in Customer on 1 week of the benefits service FTE time per component of charter state or the territory. [Customer analysis. service [Customer charter:- service $32,000] charter, ongoing cost: $350,000] Assumed to be Ongoing costs, every 2 years 8 members at $5,000 per Formal member for consulting their time. with industry [Expert panel (expert members’ time: $40,000] Sources: and territory governments, ACCC and Marsden Jacob analysis. Summary of costs The present value of the costs for each of the options is set out in Table 16. The analysis used an assumed time frame of 20 years and a real discount rate of 7%. 16: Present value of the costs ($ million) Base case Reform option A Reform option B NTC $5.89 $0.00 $0.00
Ongoing resources to allow additional scrutiny ACCC estimate was 20% of AER Networks Branch (total budget of which is $6–7 million). [Ongoing assessment cost: increased scrutiny: $1,300,000] Assumed to be 0.5 FTEs per state and territory government. [Ongoing resources to allow additional scrutiny: $1,400,000] Ongoing costs, every 2 years Customer service charter Undertaking reviews of road managers’ achieved and committed levels of service, based on 1 week of FTE time per state or territory. [Customer service charter:- $32,000] Any additional maintenance and capital expenditure to improve road quality is included in the benefits component of the analysis. [Customer service charter, ongoing cost: $350,000] Ongoing costs, every year Formal consulting with industry (expert Assumed to be 8 members at $5,000 per member for their time. [Expert panel members’ time: $40,000] Ongoing costs, every 2 years Sources: and territory governments, ACCC and Marsden Jacob analysis. Summary of costs The present value of the costs for each of the options is set out in Table 16. The analysis used an assumed time frame of 20 years and a real discount rate of 7%. 16: Present value of the costs ($ million) Base case Reform option A Reform option B NTC $5.89 $0.00 $0.00
consultation_ris_-_hvrr_phase_2_-_independent_price_regulation_of_heavy_vehicle_charges.docx