Our rate of return guideline (Guideline) sets out the approach by which we will estimate the rate of return, and comprises the return on debt and the return on equity, as well as the value of imputation credits.
Estimation of the rate of return is complex, and the rate of return is a significant driver of regulated revenue.
Role of the RRG
Network charges are a significant component of final retail energy bills. Energy retailers could provide valuable insight about estimation of the rate of return and on the process of implementing that rate of return in determinations and in annual pricing updates. It is also an opportunity for interested retailers to engage with AER staff.
Please contact us at firstname.lastname@example.org if you are interested in joining the RRG during the course of the review.