Submission to IPART’s review of financeability test 2018

Publication date:
29 May 2018
Resource type:
Submission

PIAC lodged a submission to the Independent Pricing and Regulatory Tribunal’s (IPART) issues paper for its review of financeability test for regulated businesses. IPART applies the test after making a price determination to assess whether the allowed prices are likely to affect the business’ financial sustainability and ability to raise funds.

PIAC supports IPART continuing to conduct financeability tests. Further, PIAC strongly supports continuing to use financeability test as a check of the output of the price determination process and not as an input in setting the allowed prices and/or rate of return for a regulated business.

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