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Figure 10.2 - Overview of Tariff Adjustment Mechanism

Figure 10.2 - Overview of Tariff Adjustment Mechanism. At start (before period t). Every 4 months (in period t+1). Forecast costs & demand. Selected out-turn figures. S. S. S. D. D. D. T. T. E. T. E. E. Actual Revenue (AR). Base Allowed Revenue. Revised Allowed

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Figure 10.2 - Overview of Tariff Adjustment Mechanism

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  1. Figure 10.2 - Overview of Tariff Adjustment Mechanism At start (before period t) Every 4 months (in period t+1) Forecast costs & demand Selected out-turn figures S S S D D D T T E T E E Actual Revenue (AR) Base Allowed Revenue Revised Allowed Revenue (RAR) (estimated revenue period t, each business) (4 monthly 2000-2003, each business) (period t, each business) S D T E Over - or Under - recovery (RAR minus AR for period t, each business S S S D D D T T T E = + E E Base charge FtAdjustment Charge (period t+2, each business) (2000-2003 each business) (over - or under - recovery applied in period t+2)

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