Cross-subsidy definition
Cross-subsidy means the unauthorized over-allocation of costs to captive ratepayers resulting in under-allocation of costs to a utility affiliate.
Cross-subsidy means the transfer of assets, either in cash or kind, or allocation of costs within the accounts of the Licensee or among Associated Businesses for the financial support of one activity or business or customer group at the expense of another;
Cross-subsidy means covering the cost of offering some services through excess revenues earned from other services. Anti-competitive cross-subsidy normally refers to a practice by a dominant firm of offering services in competitive markets at low (i.e. below cost) prices, while maintaining overall firm profitability by charging above cost prices in monopoly markets or in markets where the firm enjoys market power.
More Definitions of Cross-subsidy
Cross-subsidy means the difference between the average cost of supply of the licensee and the applicable tariff before any subsidy provided by the Government under the Act, is taken into consideration.
Cross-subsidy means the over-recovery of revenue from customers in some tariff classes in order to balance the under-recovery of revenue from customers in other tariff classes as informed by the cost of supply study;
Cross-subsidy means where the Access Charges payable in respect of one Train Service or combination of Train Services are insufficient to meet:
Cross-subsidy means differentiating tariffs for certain categories of customers so that the contribution by a group of customers pays for part of the cost of services supplied to other customers or group of customers;
Cross-subsidy means a financial advantage arising where, for any costs that are jointly incurred by a prescribed business and an Associate taking part in a related business or by monopoly and contestable activities undertaken by a prescribed business, the costs allocated to the Associate’s output or the contestable activity are less than that part of the cost of the output or activity that could be saved over the long term by not producing or undertaking it (the long run avoidable cost of supply).
Cross-subsidy means the difference between the applicable average tariff of that consumer category/sub category and the average cost of supply as approved by the Commission for that year;
Cross-subsidy means where: