AER invites expressions of interest for Eligible Experts for the 2026 Rate of Return Instrument review

The AER invites expressions of interest from individuals to join a panel of Eligible Experts for our 2026 Rate of Return Instrument (RORI) review.

National energy laws set out the regulatory framework for conducting RORI reviews. The RORI specifies how the AER will determine the allowed rate of return on capital invested in regulated electricity and gas networks. It specifies the way to calculate the rate of return on capital and value of imputation credits, expressed as mathematical formulae, and how we will obtain inputs for those formulae.

The AER is the decision‑maker for RORI reviews, which occur every four years. Building on extensive knowledge and learnings from previous RORI reviews, we expect the 2026 RORI review will be a more efficient and effective process that is less onerous for all interested parties. This paves the way for a focussed review that is centred on the key issues at play given energy market priorities and conducted in accordance with regulatory requirements. We expect to start our 2026 RORI review in late‑July 2025 with the release of an AER discussion paper. The discussion paper will set out our positions on what we consider to be the likely key issues for the review, namely:

• the methodology involved for moving away from a simple trailing average to a weighted trailing average approach to the return on debt in certain circumstances
• research into the equity beta, particularly given the reduction in the number of listed Australian comparator firms in recent times and the appropriateness of using international comparator firms to inform our work going forward.

Before publishing a draft RORI, the AER must seek concurrent expert opinions or evidence about the proposed RORI. To this end, and subject to discussion with the appointed Eligible Experts, we expect to publish a single report that has been prepared jointly by the Eligible Experts in October 2025, with a particular focus on weighted trailing average and equity beta subject matter in response to the AER’s discussion paper. 

Stakeholders’ submissions on both the AER’s discussion paper and Eligible Experts’ report will inform the AER’s considerations for the draft 2026 RORI, which we expect to publish in April 2026. An indicative timeline for the RORI review is set out below.

Eligible Experts are persons with qualifications or experience in a field the AER considers relevant to make a RORI, such as: finance; economics; law; consumer affairs; and institutional investment. The AER must call for nominations of Eligible Experts, but may seek the expert opinions or evidence from any Eligible Expert. If practicable, we must seek expert opinions or evidence from at least three Eligible Experts. We may seek expert opinions in the way we consider appropriate. We must also publish a report on our website on the outcomes of seeking expert opinions or evidence. 

We invite expressions of interest (maximum 800 words) from individuals in relation to the following selection criteria.

Selection criteria

1. Significant experience in one or more of the following areas:
   • Financial and economic analysis: For example, through applying financial, economic and statistical skills in the areas of corporate finance, investment analysis, economic forecasting or business analysis.
   • Regulatory decision‑making: For example, experience working within a regulator or similar agency, preparing submissions or reports on regulatory matters, or undertaking reviews of regulation and regulatory agencies.
   • Knowledge of the energy sector or other utilities: For example, working within a relevant business or providing consultancy services to it.
   • Consumer advocacy, insight and engagement: Research expertise or significant experience in understanding diverse consumer priorities and needs, and engaging consumers in the regulatory framework.
2. The ability to critically analyse and assess material authored by the AER, regulated businesses and other stakeholders, with a particular focus on weighted trailing average and equity beta subject matter, and bring a strong evidence‑based perspective to provide robust challenge to AER and other stakeholders’ perspectives.
3. Excellent communication skills, including the ability to write and orally communicate complex information in a way that is accessible to a diverse stakeholder audience.
4. Appropriate resource capacity and availability to fulfil the requirements for Eligible Experts for the proposed term, including the extent to which the applicant has identified any existing, potential or perceived conflicts of interest and a proposed strategy for managing those conflicts.

Time commitment and remuneration

We expect to appoint Eligible Experts in late‑July 2025 and individuals will remain in that role until 19 December 2025. As Eligible Experts will be appointed in their individual capacity, they will not be permitted to nominate alternative representatives on their behalf.

We expect Eligible Experts to spend up to a maximum of 20 days each on that role until 31 October 2025, with little additional time expected thereafter. They will be paid for their services at a daily rate set by the AER, including for time spent reading and analysing any materials provided, writing and presenting their report to the AER, and other preparatory activities.

Closing date for applications

Applications can be emailed to RateOfReturnaer [dot] gov [dot] au (RateOfReturn[at]aer[dot]gov[dot]au) and must be received by 5pm AEST, Friday 18 July 2025.

In submitting an expression of interest, applicants are requested to provide:

• full name
• address, phone and email
• trading and business name (if applicable)
• ACN or ABN (if applicable)
• response to the selection criteria
• current CV/resume
• details of two referees

Key milestones and indicative dates for the 2026 RORI review