IPART is reviewing two elements of the pricing principles in the NSW Rail Access Undertaking:
Along with the other elements included in the pricing principles (such as the regulatory asset base, capital expenditure and maintenance costs) the rate of return and remaining mine life are used in determining an allowable range for rail access prices.
The NSW Rail Access Undertaking covers all, or part of, the following rail network
- Hunter Valley Coal Network
- Non-Hunter Valley Coal Network
- Country Rail Network
- Sydney Metropolitan Freight Network.
The rate of return determined by IPART is included in the pricing principles for each of these networks.
The remaining mine life applies to the Hunter Valley Coal Network only. It is used to calculate the depreciation allowance for the five sectors of the Hunter Valley Coal Network between Newstan Junction and Woodville Junction.