Rate of return and cashflows in a low interest rate environment - Pathway to Rate of Return 2022

  • Accepting submissions
  • Upcoming stakeholder forum
Rate of return
Date initiated: 
21 May 2021
General enquiries - Rate of return RateOfReturn@aer.gov.au
AER reference: 


On 21 May 2021 the AER published a working paper on Rate of return and cashflows in a low interest rate environment. This is the fifth topic 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 set a rate of return that contributes to the achievement of the National Gas Objective and National Electricity Objective.

The draft working paper begins our considerations on:

  1. Whether we are in a low interest rate environment;
  2. If we are, what are the consequences of lower interest rates; and finally,
  3. Does this suggest that there is something that needs to be addressed?


We invite submissions from interested stakeholders by Friday 2 July 2021. In addition we will be hosting an online forum for interested participants on Wednesday 23 June 2021. Presentations from the forum and all stakeholder submissions will be published on this website.

The final working paper will consider and respond to stakeholder submissions.