AER releases discussion papers on rate of return guideline

On 28 February 2018 we released three discussion papers on the following matters to be discussed at the first concurrent evidence session:

  • Gearing
  • Financial performance measures
  • Risk and judgement

The discussion papers provide background on the matters to be discussed at the concurrent evidence sessions and questions to frame that discussion.

We have also published a report by Darryl Biggar, referenced in the Financial performance measures discussion paper. This paper outlines his views on the information value of RAB multiples.

Evidence sessions

On 15 March 2018 the AER will hold its first concurrent expert evidence session as part of its to review of the rate of return guidelines. This will be a closed session to allow detailed and natural discussion between the AER Board and the participating experts. A transcript of the session will be published on our website.

The purpose of the concurrent expert evidence sessions is to assist the AER Board in making a decision which will best achieve the national gas and electricity objectives by allowing them to clearly define the issues of agreement and areas of disagreement between relevant experts.

Invitation for submissions

We are inviting written submissions on our evidence sessions, discussion papers and transcripts by 20 April 2018.

Issued date: 
1 March 2018
AER reference: 
AC 25/18
General inquiries - Rate of return