IPART uses a real rate of return in setting prices to cover a utility's costs. This requires the conversion of a nominal cost of capital to a real cost of capital by adjusting for expected inflation.
The private ferry cost index model is used by the Tribunal to measure the change in the costs of providing private ferry services over the course of the year.
The purpose of this model is to:a) Calculate the annual historical increase in costs faced by drivers and operators of taxis via the urban and country taxi cost index.b) Adjust the index weightings to ensure that the index reflects the costs faced
Provides a detailed explanation of IPART's calculation of cost indexes used in transport. It is designed to assist stakeholders examining the taxi cost index model which has also been released and can be found on our website.
Provides a detailed explanation of IPART's calculation of cost indexes used in transport. It is designed to assist stakeholders examining the taxi cost index model which has also been released and can be found on our website.