Open Access (infrastructure) - Concerns

Concerns

A player seeking access to infrastructure would expect to pay several fees of a capital and operating kind. Hopefully the cost of this is less than having to build separate infrastructure. It is in the public interest that access disputes be resolved in an efficient way, so that for example, profits are maximised and therefore income tax on those profits is also maximised.

The potential for monopoly infrastructure to charge high fees and provide poor service has long been recognised. Monopolies are often inevitable because of high capital costs, with governments often imposing conditions, in exchange for approval of the project and for the granting of useful powers such as land resumption. Thus a canal might have its rates regulated, and be forbidden to operate canal boats on its own waters.

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