Wholesale Network Company: Initial Thoughts

So what should a utility company that is only allowed to sell access to the grid / data network / pipelines look like?

A special class of company which have obligations and benefits.  The benefits would only be available while the company solely provides wholesale access to a network the company owns.  The benefits are to allow a return of investment comparable to other businesses to attract private investment, while at the same time minimising tax payer expense.

Initial thoughts on obligations:

• To deliver a standard of service established by the "state" through regulation.


• To implement network based on standards to allow for interconnectivity with other utilities companies (providing the same utility).

Initial thoughts on benefits:

• 100% tax credits for network installation / maintenance costs to be claimed at the company's discretion (no depreciation of assets).


• Greater than 100% tax credit for projects requested by the state which are no financially viable on their own terms.

The intent of tax credits is to ensure the wholesale network company is planning for the long term, as it will only benefit from the credits when it has a tax burden.

This is a work in progress.  I believe it is important to find the right balance to allow private utility businesses as the market can deal with changing technology faster than a government department.  But ensuring an open market and not creating new monopolies in the process is difficult.