International regulatory approaches to rate of return - Pathway to Rate of Return 2022

  • Accepting submissions
Status: 
Category: 
Rate of return
Date completed: 
31 December 2020
Date initiated: 
27 August 2020
Effective date: 
31 December 2020
Contact: 
General enquiries - Rate of return RateOfReturn@aer.gov.au
AER reference: 
65402

Overview

This is the second 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 into the active phase of our 2022 rate of return instrument review. This information will assist us to set a rate of return that contributes to the achievement of the National Gas Objective and National Electricity Objective.

The draft working paper reviews the approach taken by a number of overseas regulators to setting the rate of return. It identifies similarities and differences between our current approach and the approaches used internationally. It provides context by analysing the overall regulatory framework and environment in which different regulators operate. It asks for stakeholder feedback on how we might improve our approach by adopting elements from overseas regulatory practice.

Invitation for submissions

We are now seeking submissions from interested stakeholders on the International regulatory approaches to rate of return draft working paper by Friday 9 October 2020.

Online forum

There will be an online forum on the draft working paper from 2-5 pm on Wednesday 16 September 2020. This will be a joint forum that also covers our third working paper, CAPM and alternative asset pricing models. Participants interested in attending the forum should email RateOfReturn@aer.gov.au to register their attendance and receive online connection details.

The AER’s expert advisors, Dr Toby Brown (from The Brattle Group) and Professor Graham Partington, will answer stakeholder questions for 45 minutes during the forum. We request that stakeholders submit questions in advance. The AER will choose questions from each stakeholder segment. Questions should be emailed to RateOfReturn@aer.gov.au by 10 am on Monday 14 September 2020.