Distribution pricing: alignment review
We have appointed Castalia to assist with a review of distributors’ pricing methodologies. The review will provide information about:
- the information that is disclosed by each distributor about its pricing methodology
- the extent to which each distributor’s methodology aligns with the principles
- whether a distributor’s pricing approaches and methods are efficient or inefficient, given a particular set of network circumstances.
We will use the review outcomes to assess whether the voluntary pricing principles are resulting in distributors using efficient and pro-competitive pricing structures or whether alternative arrangements are needed to achieve efficient pricing methodologies. Our decisions about distribution pricing and the principles and guidelines will be informed by the statutory objective and the economic framework.
We intend to publish the findings of the review for each distributor, most likely in late-2013.