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        Law of Competition

        Regulation 3 - Determination of cost

        CCI (Determination Of Cost Of Production) Regulations, 2009

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        Average variable cost as proxy for marginal cost; regulators may adopt alternative cost concepts with recorded reasons. Cost will generally be measured by average variable cost as a proxy for marginal cost; the regulator may adopt alternative cost concepts such as avoidable cost, long run average incremental cost or market value in specific cases with reasons recorded in writing, and may engage suitable experts to assist in arriving at cost figures.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Average variable cost as proxy for marginal cost; regulators may adopt alternative cost concepts with recorded reasons.

                              Cost will generally be measured by average variable cost as a proxy for marginal cost; the regulator may adopt alternative cost concepts such as avoidable cost, long run average incremental cost or market value in specific cases with reasons recorded in writing, and may engage suitable experts to assist in arriving at cost figures.


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