- Accepting submissions
Our rate of return guideline (Guideline) 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.
Estimation of the rate of return is complex, and the rate of return is a significant driver of regulated revenue.
On 31 October 2017, we released an issues paper requesting views on whether our current approach to setting the allowed rate of return remains appropriate. This issues paper follows a consultation paper we published in July 2017, which sought views on how we could best run the Guideline review process, and a pre-issues paper public forum we held on 18 September 2017.
On 28 February 2018 we released three discussion papers on the following matters to be discussed at the first concurrent evidence session:
- Financial performance measures
- Risk and judgement
On 15 March 2018 we released three discussion papers on the following matters to be discussed at the second concurrent evidence session:
- Equity Beta
- MRP, Risk Free Rate Averaging Period and Automatic Application
The discussion papers provide background on the matters to be discussed at the concurrent evidence sessions and questions to frame that discussion.
Evidence session - 1
On 15 March 2018 the AER held its first concurrent expert evidence session as part of its to review of the rate of return guidelines. This was a closed session to allow detailed and natural discussion between the AER Board and the participating experts. A transcript of the session is published on our website.
Evidence session - 2
On 5 April 2018 the AER will hold its second concurrent expert evidence session as part of its to review of the rate of return guidelines. Like the first evidence session, this will be a closed session to allow detailed and natural discussion between the AER Board and the participating experts. A transcript of the session will be published on our website.
Invitation for submissions
We are inviting written submissions on our evidence sessions, discussion papers and transcripts by 4 May 2018.
Register your interest
Interested stakeholders can register their interest and be kept informed of developments in this area by sending us an email at RateOfReturn@aer.gov.au.