Potential benefits that only to Reform option B Table 4 lists potential benefits that apply only to Reform option B. Table 4: Potential benefits that apply only to Reform option B Reform components Intermediate outcome Final outcome Comparative benchmarking Additional scrutiny and analysis across transparency of capacity governments may indicate Greater net benefits, which result from expansion expenditure potential for improvements governments selecting capacity decisions in decision-making expansion projects that have relatively higher benefit–cost ratios. Road managers more Development of accountable for investment comparative datasets on decisions capacity expansion Additional scrutiny and Comparative benchmarking because there is maintenance costs analysis of maintenance transparency of road a drive for greater efficiency from maintenance expenditure costs and levels of service benchmarking. across governments may decisions highlight areas for improvement Development of Improved levels of service and hence comparative datasets on lower vehicle operating costs on some maintenance activities, Road managers more key routes by better targeted road use and levels of accountable for investment maintenance works. service decisions Lower combined maintenance and vehicle operating costs, as road users Regulator able to alter the may choose vehicle types and usage mix of RUC and RUC may increase to align levels that more closely reflect the costs registration charges (but more closely with efficient that are incurred by usage. revenue neutral for price structures Lower financing costs, as road users do governments) not have to finance up-front registration costs. Enhanced focus on customer expectations of road management Improved levels of service and hence Customer service charter lower vehicle operating costs on some Performance assessment for key freight routes key routes from targeted capacity by IPR indicates that there expansion or maintenance expenditures. is scope for improvement in levels of service to meet the customer service charter Formal mechanism for user Forward expenditure plans input into pricing Greater net benefits from road are influenced by road user determinations and service investments by better targeting capacity input on priority areas for levels (e.g. expert panel) expansion and maintenance activities to capacity expansion and/or and have regard to the high-need areas. improved levels of service advice of the expert panel
Potential benefits that only to Reform option B Table 4 lists potential benefits that apply only to Reform option B. Table 4: Potential benefits that apply only to Reform option B Reform components Intermediate outcome Final outcome Additional scrutiny and transparency of capacity expansion expenditure decisions Comparative benchmarking analysis across governments may indicate potential for improvements in decision-making Road managers more accountable for investment decisions Greater net benefits, which result from governments selecting capacity expansion projects that have relatively higher benefit–cost ratios. Development of comparative datasets on capacity expansion Additional scrutiny and transparency of road maintenance expenditure decisions Comparative benchmarking analysis of maintenance costs and levels of service across governments may highlight areas for improvement Road managers more accountable for investment decisions maintenance costs because there is a drive for greater efficiency from benchmarking. Development of comparative datasets on maintenance activities, road use and levels of service Improved levels of service and hence lower vehicle operating costs on some key routes by better targeted maintenance works. Regulator able to alter the mix of RUC and registration charges (but revenue neutral for governments) RUC may increase to align more closely with efficient price structures Lower combined maintenance and vehicle operating costs, as road users may choose vehicle types and usage levels that more closely reflect the costs that are incurred by usage. Lower financing costs, as road users do not have to finance up-front registration costs. Customer service charter for key freight routes Enhanced focus on customer expectations of road management Performance assessment by IPR indicates that there is scope for improvement in levels of service to meet the customer service charter Improved levels of service and hence lower vehicle operating costs on some key routes from targeted capacity expansion or maintenance expenditures. Formal mechanism for user input into pricing determinations and service levels (e.g. expert panel) and have regard to the advice of the expert panel Forward expenditure plans are influenced by road user input on priority areas for capacity expansion and/or improved levels of service Greater net benefits from road investments by better targeting capacity expansion and maintenance activities to high-need areas.
consultation_ris_-_hvrr_phase_2_-_independent_price_regulation_of_heavy_vehicle_charges.docx