ENA - A calibrated dividend growth estimate of the market risk premium - 28 April 2022

Energy Networks Australia’s (ENA) submission to our three draft working papers on Overall rate of return, Equity and Debt included a discussion on the use of scenario testing as one of the cross checks of the overall rate of return and also proposed a calibrated Dividend Growth Model (DGM) as a method to address the concerns about DGMs expressed in the 2018 Rate of return instrument. The ENA has provided information on its scenario testing and the outputs from its calibrated DGM. We have published the ENA’s scenario testing model below which also contains outputs from its calibrated Dividend Growth Model.