Final decision

On 24 February 2023 the AER published its final decision on its Rate of Return review. The Final decision includes the Rate of Return Instrument and Explanatory Statement.

This instrument referred to as the 2022 Instrument is largely consistent with the 2018 Instrument but updated to reflect the latest data and market conditions. The Instrument sets out the approach by which we will estimate the rate of return and comprises the return on debt and the return on equity, as well as the value of imputation credits.


On 2 August 2023 the Rate of Return Instrument - version 1.0 was superseded by version 1.1. The AER amended the Rate of Return Instrument due to the unavailability of the RBA F16 data series. A tracked changes version of the amended instrument, and an explanatory note for this amendment has also been published.

The explanatory statement published on 24 February 2023 was not affected by the change.