Principles of Implementation and Best Practice (PIB)
BT's response dated 7 September 2003 on the ERG Consultation document on LRIC - Principles of Implementation and Best Practice (PIB)
Tim Jones, e-mail
BT welcomes comments on this submission which should be sent to:
Our detailed comments on the consultation document are available by downloading the PDF.
BT welcomes the opportunity to comment on the ERG consultation document on Long Run Incremental Costs (LRIC) Principles of Implementation and Best Practice (PIB). In our view the use of a LRIC approach, when properly applied, is a valid approach for the assessment of cost oriented interconnection tariffs where such a regulatory remedy is deemed to be necessary to deal with issues relating to Significant Market Power (SMP). We, therefore, consider the use of this approach to be useful in the European regulatory environment. In particular, it can provide the industry with confidence that an SMP operator's charges are properly cost-oriented, when coupled with publication of both the methodologies used to prepare the LRIC information, and the results of the LRIC process.