GAWB pricing practices 2000–05

To assess the pricing practices of GAWB, through consultation with stakeholders, we developed a pricing framework consistent with the objectives of monopoly prices oversight, assessed GAWB’s prices and pricing practices against that framework, and developed proposals for monitoring pricing practices.

We recommended in our final report that prices should be based upon the long-run marginal cost (LRMC) of supply over a 20-year planning period, and that two-part tariffs should be implemented.

The aggregate revenue requirement consistent with the QCA’s recommendations is $446 per megalitre in 2001–02 for the preferred planning scenario.