The Australian Energy Regulator (AER) has developed a draft return on debt illustrative model. It calculates the regulated return on debt in accordance with the most common scenarios under the 2018 rate of return instrument.
The illustrative model is intended to be used as a tool to help users understand and calculate the return on debt for a network business. Stakeholders can use the model to replicate the AER’s regulated return on debt calculations and test outcomes under different input scenarios.
Invitation for submissions
We invite stakeholder feedback on the draft return on debt illustrative model and handbook, including on the scope and accessibility of the model. Submissions are requested by close of business on Friday 4 October 2019 and should be emailed to RateOfReturn@aer.gov.au.