The valuation of assets and its impact on water utility pricing in Australia

This thesis investigates the two main asset valuation techniques are used for price-setting purposes; that is, the depreciated optimised replacement cost (DORC) and economic value (EV) valuation models, in context of water utility pricing in major Australian jurisdictions. In doing so, some practical issues that arise in the implementation of asset valuation techniques can be resolved on a basis consistent with its underlying objectives. In making these objectives apparent, academics and practitioners will be able to judge whether deprival value principles are well suited to tariff regulation, and whether the financial models can be usefully transferred to other price-setting and financial modelling applications, in the public and private sectors.