The regulatory framework is based on established pricing principles and regulatory mechanisms. Amongst other things, the pricing principles provide that until at least 30 June 2032, tariff increases for Prescribed Services (other than full outbound container tariffs) are constrained by the lower of the:
- Annual percentage change in the Australian (all groups) Consumer Price Index (CPI). This cap on tariffs is referred to as the Tariff Adjustment Limit (or “TAL”); or
- Tariffs implied by the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.
Tariffs for full outbound container wharfage services will decrease by 2.5 per cent per annum until the year ending 30 June 2020.
From 1 July 2037, Port of Melbourne expects that tariffs for Prescribed Services will be set using the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.