Chairmont - Letter - Response to Consultant s Questions Final - 4 June 2018

On 10 May 2018 we published a discussion paper addressing return on debt issues. With the paper, we have also published a new report from Chairmont Group presenting aggregated actual return on debt information. We sought and were provided this information by privately-owned networks that we regulate. We are mindful that this discussion paper is being released later in the review process than our previous discussion papers. This was a consequence of the time taken to receive the responses and for us to aggregate and undertake preliminary analysis on the complex underlying information. Now that we have advanced our analysis, we are of the view that stakeholders should have an opportunity to consider and comment on this information prior to the draft guideline.

The role of the aggregated information is to assist stakeholders to consult on debt raising practices across the sector without disclosing commercially sensitive details of the individual debt instruments provided to the AER.

We are also engaging with stakeholders on the possibility of a forum or concurrent expert evidence session to consult further on the issues raised in the discussion paper. We will keep stakeholders informed of developments on further consultation via the rate of return mailing list.