NBN Co SAU Variation (November 2022)

Details

ACCAN has responded to an ACCC consultation on NBN Co’s proposed variation to its Special Access Undertaking (SAU). The SAU sets out the rules by which NBN Co provides wholesale access to retailers. The SAU can determine price and quality of voice and broadband services delivered over the NBN until 2040.

The SAU variation lodged by NBN Co in November 2022 represents a significant step forward compared to its previous Variation. There are many aspects of the latest proposal that ACCAN supports such as the shift to a flat rate pricing construct, the reduction of the Initial Cost Recovery Account, the Replacement Module Application process, and the introduction of the Weighted Average Price Cap.

Despite this, there remain significant changes that need to be made to the Variation prior to its acceptance by the ACCC. ACCAN’s key recommendations include:

  • Post 2032, when setting NBN Co’s revenue allowance, the ACCC should not be required to have regard to NBN Co’s ability to achieve and maintain, for the duration of each regulatory cycle, a stand-alone investment grade credit rating.
  • The SAU should provide the ACCC the ability to introduce incentive schemes into the framework.
  • The framework for consultation and engagement should be strengthened by specifying appropriate minimum timeframes for consultation, requiring detailed business cases to be provided and consulted on, and funding resources necessary for best practice consultation.
  • NBN Co should be required to develop a product targeted to low-income consumers that is endorsed by representatives of low-income consumers within the first 12 months of the SAU.
  • The low-income forum proposal should be amended to ensure that the goal of improving affordability of the network is achieved. The forum should be independently chaired, examine issues of affordability solely, convened on a minimum of a bi-annual basis and focus on all low-income consumers, not just those who are not connected to the network.

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