Pricing principles

The regulatory framework is based on established pricing principles and regulatory mechanisms. Amongst other things, the pricing principles provide that until at least 30 June 2032, tariff increases for Prescribed Services (other than full outbound container tariffs) are constrained by the lower of the:

  • annual percentage change in the Australian (all groups) Consumer Price Index (CPI). This cap on tariffs is referred to as the Tariff Adjustment Limit (or “TAL”); or
  • tariffs implied by the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.

The Port of Melbourne currently expects that tariffs for Prescribed Services will be subject to the TAL and therefore increase in line with the annual increase in CPI until 30 June 2037. This is because tariffs implied by the Aggregate Revenue Requirement are expected to be higher than tariffs subject to the TAL over this period.

Tariffs for full outbound container wharfage services will decrease by 2.5 per cent per annum until the year ending 30 June 2021.

From 1 July 2037, the Port of Melbourne expects that tariffs for Prescribed Services will be set using the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.

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The regulatory framework is based on established pricing principles and regulatory mechanisms. Amongst other things, the pricing principles provide that until at least 30 June 2032, tariff increases for Prescribed Services (other than full outbound container tariffs) are constrained by the lower of the:

  • annual percentage change in the Australian (all groups) Consumer Price Index (CPI). This cap on tariffs is referred to as the Tariff Adjustment Limit (or “TAL”); or
  • tariffs implied by the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.

The Port of Melbourne currently expects that tariffs for Prescribed Services will be subject to the TAL and therefore increase in line with the annual increase in CPI until 30 June 2037. This is because tariffs implied by the Aggregate Revenue Requirement are expected to be higher than tariffs subject to the TAL over this period.

Tariffs for full outbound container wharfage services will decrease by 2.5 per cent per annum until the year ending 30 June 2021.

From 1 July 2037, the Port of Melbourne expects that tariffs for Prescribed Services will be set using the forecast Aggregate Revenue Requirement calculated using an accrual building block methodology.

Quick links