Building Block Model (Paperback)

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The building block model is a form of public utility regulation that is common in Australia. Variants of the building block model are currently used in Australia in the regulation of electricity transmission and distribution, gas transmission and distribution, railways, postal services, urban water and sewerage services, and irrigation infrastructure. The Australian Competition and Consumer Commission has stated that it intends to use a version of the building block model to determine indicative access prices for fixed-line telecommunications services. The building block model is so-called because the allowed revenue of the regulated firm is equal to the sum of underlying components or building blocks consisting of the return on capital, the return of capital, the operating expenditure, and various other components such as taxes and incentive mechanisms.