Powerlink submission on real risk free rate bias - 30 March 2007

On 30 March 2007 Powerlink provided additional information to the Australian Energy Regulator on the estimated inflation forecast used in its draft decision. Powerlink’s submission relates to an apparent observed bias in the indexed Commonwealth bond yields which are used as a proxy for the real risk free rate.

The AER sought interested parties’ views, particularly on whether this issue can be properly addressed in the time remaining for finalising the decision (May 2007).

Submissions closed 9 February 2007