- Accepting submissions
This is the first in a series of working papers that we will produce as part of our pathway to the 2022 rate of return instrument. The outcomes from these working papers will feed in to the active phase of our 2022 rate of return instrument review. This information will assist us to develop a 2022 rate of return instrument that sets a rate of return in line with efficient financing costs, such that consumers pay no more than is necessary for the safe and reliable delivery of electricity and gas.
The draft working paper presents data on regulated energy network debt costs, discusses how it should be analysed, and identifies options for how it might be used when we set the 2022 instrument. This topic was selected because it flowed from analysis of debt data during the 2018 review, where Chairmont developed an initial index of industry debt costs. Since that time we have obtained updated data from energy networks and commissioned a new Chairmont report that addresses some issues outstanding from the previous review.