Review of rate of return guideline

Status: 
Date initiated: 
31 July 2017
Effective date: 
17 December 2018
Contact: 
General inquiries - Rate of return RateOfReturn@aer.gov.au
AER reference: 
58744

Overview

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. We invite interested parties to make submissions on the issues paper by 12 December 2017. For more information on how to lodge a submission, see Initiation.

Positions paper

On 28 November 2017, we released our positions paper on the process for reviewing the rate of return guideline (Guideline). In particular, it describes how we will implement:

  • The independent panel review of our draft guideline
  • The concurrent expert evidence sessions
  • The consumer reference group.

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.