EOI - Independent Panel for 2026 Rate of Return Instrument review

Expression of Interest (EOI) applications sought by 30 January 2026 from individuals to join the Independent Panel 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 formally started our 2026 RORI review on 4 August 2025 with the release of an AER discussion paper, setting 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
• the potential reintroduction of yield curve data from the Reserve Bank of Australia for estimating the return on debt.

About the Independent Panel

Under energy laws, the AER must, as soon as practicable after publishing the draft RORI, establish an Independent Panel to give the AER a written report about the RORI. We expect to publish the draft 2026 RORI in April 2026. An indicative timeline for our review is set out below.

The Independent Panel must consist of at least three members, appointed by the AER, who have the qualifications or experience in a field the AER considers relevant to making a RORI, such as: finance; economics; law; consumer affairs; and institutional investment. 

The Independent Panel may carry out its activities, including giving the report, in the way it considers appropriate, but must seek to give the report by consensus. The report must include the Panel’s assessment of the evidence and reasons supporting the rate of return on capital or the value of imputation credits under the RORI, and state whether the report is given by consensus. The Panel must give the report to the AER before the AER makes the RORI. The AER must publish the report on its website.

The questions we intend to put to the Independent Panel for the 2026 RORI review are the same as those asked in the 2022 RORI review:

1. In the Independent Panel’s view, is the draft RORI supported by evidence and reasons, taking into account competing factors such as accuracy, consistency, accessibility and transparency?
2. In the Independent Panel’s view, is the draft RORI likely to contribute to the achievement of the national electricity objective and national gas objective?

The report by the Independent Panel formed for the AER’s 2022 RORI review is available on this page.

Expressions of interest invited

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

1. Significant experience in one or more of the following areas:
   • Financial and economic analysis: through applying financial, economic and statistical skills in the areas of corporate finance, investment analysis, economic forecasting or business analysis.
   • Regulatory decision making: 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: 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, 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 the Independent Panel 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.
5. Respondents to this expression of interest may apply for the position of Independent Panel member and/or Panel chair. The Panel chair, in addition to work on the report alongside other Panel members, will be responsible for administrative coordination of the group, including the timely submission of the Panel’s report to the AER. If you wish to nominate for the role of chair, please outline your leadership and communication skills which have led to significant accomplishments, for example, in business, government, academia and/or the not‑for‑profit sector.

Time commitment and remuneration

We expect to appoint the Independent Panel in March 2026, with a view to the Panel commencing its work after the AER publishes the draft 2026 RORI in April 2026. The Panel will run until their report is published by around 30 June 2026. We expect Panel members to spend up to a maximum of 10 days each, and the chair up to 15 days, on their respective roles. They will be paid for their services at a daily rate, as agreed with the AER, including for time spent reading and analysing any materials provided, writing and presenting their report to the AER, and other preparatory activities. As Independent Panel members will be appointed in their individual capacity, they will not be permitted to nominate alternative representatives on their behalf.

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 AEDT, Friday 30 January 2026.

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
• indicate their interest in the position of Independent Panel member and/or Panel chair.

Key milestones and indicative dates for the 2026 RORI review