The Port Management Act 1995 (Vic) (PMA) establishes the economic regulatory framework for Victoria’s ports. The PMA identifies which ports services are prescribed for regulation by the Commission (prescribed services).
The Essential Services Commission Act 2001 (ESC Act) provides powers for the Commission to price regulate prescribed port services and recommend what form that regulation should take.
Form of Regulation
The form of regulation currently applied to prescribed services is price monitoring. This is a light handed form of regulation whereby the Commission monitors prices for certain prescribed services at the Port of Melbourne. The Commission has no power to set prices or direct the Port of Melbourne to charge certain prices.
This form of regulation is given effect through the Commission’s Price Monitoring Determination (PMD) available under Determinations.
Price Monitoring Determination 2010 (PMD)
The PMD requires the Port of Melbourne Corporation (PoMC) to:
- prepare a pricing policy statement (PPS) setting out its pricing strategy, including how it will calculate its reference tariffs and how it applies pricing principles and other economic principles or commercial considerations
- publish a reference tariff schedule setting out prices for prescribed services
- submit certain business and financial information to the Commission for monitoring purposes.