The Australian Energy Regulator (AER) has today released its final working paper on energy network debt data.
This final working paper forms part of our pathway to the 2022 rate of return instrument review. It reflects our consideration of the submissions we received in response to our June 2020 draft working paper.
The paper identifies the AER’s preferred option for how data on interest costs might inform the return on debt for regulated energy networks. The rationale for the preferred option includes setting the regulated rate of return with regard to networks’ observed debt management practices, so that consumers pay only the efficient costs of providing energy services.
The proposals from this final working paper will contribute to the main phase of the 2022 review. There will be further consultation on the proposed debt approach and how it might best be implemented as part of this process starting in mid-2021.