On 30 August 2013, the AER released its Draft rate of return guideline. This is accompanied by an Explanatory statement and Factsheet.

Information session on draft rate of return guideline

Following the release of the draft guideline the AER held an information session on 30 August 2013, presented by AER Chairman, Andrew Reeves outlining the details of our draft guideline. We have published a copy of the presentation and answers to all questions asked during the session.

Submissions to AER's draft rate of return guideline closed on 11 October 2013. 

Late submissions to AER's draft rate of return guideline.

Draft rate of return guideline

The AER held a stakeholder forum on 1 October 2013 to discuss our draft rate of return guideline. The forum provided interested stakeholders with an opportunity to clarify aspects of the draft guideline and to present their views on the draft guideline.

Equity beta

On 11 October 2013, the AER released an issues paper on equity beta as part of its consultation for developing the rate of return guideline.

The equity beta is an important component of the rate of return. This issues paper sets out our proposed approach to estimating the equity beta. Applying this approach, we propose to adopt an equity beta of 0.7, chosen from within a range of 0.4 to 0.7. In previous decisions, since our 2009 weighted average cost of capital (WACC) review, we have adopted an equity beta of 0.8.

Links to the key consultant reports referred to in this issues paper can be found within the paper. We have previously published these reports on our website.

Submissions to AER issues paper on equity beta closed on 28 October 2013.

Late submissions to AER issues paper on equity beta