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[1] and distribution,[2] gas transmission and distribution,[3] railways,[4] postal services,[5] urban water and sewerage services,[6] irrigation infrastructure,[7] and port access.[8] The Australian Competition & Consumer Commission (ACCC) has stated that it intends to use a version of the building block model to determine indicative access prices for fixed-line telecommunications services.[9] 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 (also known as depreciation), the operating expenditure, and various other components such as taxes and incentive mechanisms.
^AEMC Review of Transmission Revenue and Pricing Rules Archived October 22, 2010, at the Wayback Machine which confirmed the use of a building block approach for electricity transmission
^"Chapter 6 of the National Electricity Rules". Archived from the original on 2010-09-17. Retrieved 2010-08-19.
^"Part 9 of the National Gas Rules". Archived from the original on 2010-08-17. Retrieved 2010-08-20.
^ACCC final decision on the ARTC undertaking Archived September 10, 2010, at the Wayback Machine concerning access to the national interstate rail track infrastructure
^ACCC 2010 decision on postal prices Archived June 23, 2010, at the Wayback Machine
^Essential Services Commission (Victoria) 2005 draft decision on water services Archived March 15, 2011, at the Wayback Machine
^Draft ACCC Pricing Principles governing charging for irrigation infrastructure Archived August 22, 2010, at the Wayback Machine
^"Archived copy" (PDF). Archived from the original (PDF) on 2013-05-04. Retrieved 2012-06-26.{{cite web}}: CS1 maint: archived copy as title (link)
^ACCC Review of Access Pricing Principles for Fixed Line Services Archived September 10, 2010, at the Wayback Machine
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