AER - Equity Beta Discussion Paper - March 2018

On 5 April 2018 the AER held its second concurrent expert evidence session as part of its review of the rate of return guideline. This was a closed session to allow detailed and natural discussion between the AER Board and the participating experts.

Disclaimer: In the interests of transparency and to assist stakeholders in having prompt access to a transcript of the second concurrent evidence session, the AER has published an un-proofed version of the transcript of evidence session 2 held on 5 April 2018. This version should not be relied upon. Once all experts have reviewed the transcript the AER will publish a final version on our website.

The final proofed version of the transcript is now available.

The purpose of the concurrent expert evidence sessions is to assist the AER Board in making a decision which will best achieve the national gas and electricity objectives by allowing them to clearly define the issues of agreement and areas of disagreement between relevant experts.

On the 15 of March 2018 we released three discussion papers on the following matters to be discussed at the second concurrent evidence session:

• Gamma
• 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.