Why are the 2008/09 tariffs not based on the recently published 2006/07 reference costs data?
A. Under the current established approach to the setting of the national tariff, the latest data that can be used in calculation are the reference costs from three years previous to the year of operation. This timing is necessary to allow both the appropriate validation of costs as well as the effective quality assuring of the tariff prior to roll out each year. Therefore for 2008/09 the latest costs available to inform the national tariff are 2005/06, which are being used to underpin calculation.Looking forward, the 2006/07 reference costs are scheduled to be used to inform the 2009/10 national tariff.
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