News & insights

The final replacement module determination, the document outlining the ACCC’s reasons for its decisions and other related material, such as a public version of NBN Co’s building block model, are available here, together with supporting advice and reports from its expert advisors, HoustonKemp and CEPA.

The ACCC has determined that, for the second regulatory cycle, lower real annual building block model revenue requirement (ABBRR) for NBN Co has been set to $16.75 billion (2014 dollars) for the second regulatory cycle, which reflects our determinations on expenditure and the weighted average cost of capital.

The ACCC has also determined that NBN Co will not reach the point where its revenue earned from its core (regulated) services will exceed its regulated costs for these services during the second regulatory cycle (that is, it is not expected to reach cost recovery). This means that NBN Co’s wholesale prices for its regulated services will remain capped by the Consumer Price Index. However, the ACCC's determination of prudent and efficient expenditure will ensure that when NBN Co does reach cost recovery in future, its prices will be set to a level that only recover its prudent and efficient expenditure from customers.