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45126-Invest. Qual-No111

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Infrastructure, Public Utilities and Spatial Developmentsignificant component of the charge as is the case with gas networkcharges, where 90 per cent of the fee is levied based on theindividuals peak day demand. 12Under time-of-day pricing users take account of the costs of theirusage in congesting the network. Yet time-of-day prices are rarelylevied when it comes to the use of infrastructure. One examplewhere they do apply is in the incentive given to electricity users toreduce demand during peak winter hours, although this is onlyimplementable for large users. Some elements of infrastructure—such as the West and East Link Toll bridges, or the use of publictransport such as bus networks—are subject to a flat pricingstructure leading to congestion at peak times. Admittedly, the userof this infrastructure at this time is facing a higher cost as he/shemust bear not only the cost of the toll but also the costs ofcongestion, higher fuel consumption etc.Similarly, for some services we accept an implicit cross-subsidyfrom one class of customers to another, such as the universalpostage charge across the state. In other cases we do not, and levy amore cost-reflective incremental charge, as in the case of distancebasedtariffs for public transport. Sometimes this subsidy is fromone class of customer to another, but within one industry, as in thecase of urban to rural customers for the supply of electricity. Inother cases it is a direct subsidy from general taxation such as thePublic Service Obligations for the provision of regional airlineservices.The Council recognises the importance of many of the servicesprovided by national infrastructure for the quality of life and foreconomic development and hence, often, the universal nature oftheir provision. It was for this reason that many of these servicesevolved under state planning and ownership. The Council believesthat this universality of service, where applicable, is compatiblewith a new regime characterised by the introduction of controlledcompetition, independent sectoral regulation and the possibility of12. This is the case for gas transmission charges although the proportion of fixedcharge has recently been amended to 80 per cent of the tariff on the gasdistribution network.505

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