2) To assess whether a Controlled Wholesale Tariff is cost-oriented, the Authority shall
use, either:
a) A forward-looking incremental cost methodology, or
b) An international benchmark of relevant Wholesale Tariffs.
3) When assessing a Controlled Wholesale Tariff based on a forward-looking
incremental cost methodology, the Authority shall apply the following principles:
a) Forward-looking costs shall refer to the costs an Efficient Operator would incur
to provide a given service.
b) The cost basis shall be established by using any of the following cost modelling
methods:
i) Fully allocated costs;
ii) Long-run incremental cost (LRIC); or,
iii) Long-run incremental cost plus (LRIC+), which allows for joint and
common costs.
4) When assessing a Controlled Wholesale Tariff based on international benchmarks,
the Authority shall use data from:
a) Countries that have used a forward-looking incremental cost methodology to set
the tariff of a comparable service; and,
b) Countries that can reasonably be regarded as comparable to Ethiopia.
5) Where the Authority has not able to obtain reliable information to assess a
Controlled Wholesale Tariff by using any of the options provided in Sub-Articles (3)
and (4) of this Article, the Authority may consider a settlement-free approach to set
such tariff, if:
a) The provider of the Wholesale Service receives a comparable Wholesale Service
from the other party to an agreement; or,
b) The Authority has determined the settlement-free approach to be reasonable.
6) A Controlled Wholesale Tariff shall be deemed unduly discriminatory if a provider of
the corresponding Wholesale Service charges a different rate to different operators
for similar services provided under similar terms and conditions, unless this can be
justified by differences in costs or expected costs, of providing the services.
7) A Controlled Wholesale Tariff shall be deemed unduly discriminatory, if a Vertically
Integrated Operator providing the corresponding Wholesale Service, self-supplies its
Downstream Operation at a lower cost than it charges other operators for that same
or similar Wholesale Service.
8) When assessing the cost of self-supplying the relevant Wholesale Service referred in
Sub-Article (7) in this Article, the Authority shall apply the forward-looking
incremental cost methodology from Sub-Article (3) in this Article, to impute costs to
the self-supplied Wholesale Service.
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