The Australian Energy Regulator (AER) is seeking submissions on two draft working papers released today, as part of our pathway to the 2022 Rate of Return Instrument:
- International Regulatory Approaches to the Rate of Return compares the AER’s approach in determining the rate of return against the approaches used by international regulators.
- Capital Asset Pricing Model and Alternative Return on Equity Models discusses the strengths and weaknesses of various approaches for estimating the return on equity.
The outcomes from these working papers will feed into the AER’s 2022 Rate of Return Instrument Review which will begin in 2021. The rate of return instrument sets a rate of return that promotes efficient investment in, and operation of, regulated energy businesses, such that consumers pay no more than is necessary for the safe and reliable delivery of electricity and gas.
There will be a public online forum on both the draft working papers from 2-5 pm on Wednesday 16 September 2020. Participants interested in attending the forum should email RateOfReturn@aer.gov.au to register their attendance and receive online connection details.
Invitation for submissions
Written submissions should be emailed to RateOfReturn@aer.gov.au by close of business Friday 9 October 2020.
Alternatively, submissions can be posted to:
Mr Warwick Anderson
Networks Finance and Reporting
Australian Energy Regulator
GPO Box 520
Melbourne Vic 3001
We prefer that all submissions be sent in an electronic format in Microsoft Word or other text-readable document form and publicly available, to facilitate an informed, transparent and robust consultation process.
We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy. We request parties wishing to submit confidential information:
- clearly identify the information that is the subject of the confidentiality claim
- provide a non-confidential version of the submission in a form suitable for publication.
Enquiries about this paper, or about lodging submissions, should be directed to the Network Reporting and Finance branch (03) 9290 1800.