Trailer Magazine


Charging reform in review

  • Posted on Wednesday 1st, August 2018.

Financial consultancy, Marsden Jacob Associates, has been engaged by the Transport and Infrastructure Council to undertake a public consultation and develop a Regulation Impact Statement (RIS) on Phase 2 of the Heavy Vehicle Road Reform (HVRR) program.

According to the Transport and Infrastructure Council, the ultimate goal of HVRR is to turn the provision of heavy vehicle road infrastructure into an economic service where feasible. This would see a market established that links heavy vehicle user needs with the level of service they receive, the charges they pay and the investment of those charges back into heavy vehicle road services.

In November 2017, the Transport and Infrastructure Council agreed to develop a RIS to examine the costs and benefits of the implementation of independent price regulation and a forward-looking cost base. This RIS is a key part of Phase 2 of the HVRR road map.

The core elements of this phase of reforms relate to: The establishment of an independent price regulator, which would have powers to set prices independently of government and potentially perform a range of oversight activities related to forward-looking road expenditure; and the implementation of a forward-looking cost base, which would develop a building-block model to determine allowed revenue under heavy vehicle charging based on expected future expenditure.]

This RIS is being undertaken by Marsden Jacob Associates as an independent consultancy because the Transport and Infrastructure Council wants to understand the costs and implications of independent price regulation. No decision on independent price regulation has yet been taken; stakeholder views are sought on the RIS to help inform a Transport and Infrastructure Council decision.

The Consultation RIS forms part of a six-week consultation process and all stakeholders are invited to participate in this review by making a submission in response to the Consultation RIS (published in July 2018) with submissions invited by 31 August 2018.

Marsden Jacob Associates will compile and analyse all responses that are received.  Following the analysis of submissions, a Decision RIS will be prepared, setting out the recommended approach.

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