On 11 November 2025, the AER published its 2025 Rate of Return Annual Update Paper, illustrating annual changes in market data for the energy network businesses we regulate.
Background
The Rate of Return Instrument (RORI) specifies how the AER will determine the allowed rate of return on capital invested in regulated electricity and gas networks.
In February 2023, the AER published the second Rate of Return Instrument (2022 Instrument). Under that review process, we committed to continuing the publication of Rate of Return Annual Updates for the information of stakeholders, which we have been doing since 2019.
The intent of the Rate of Return Annual Updates is to provide stakeholders with information on rate of return data, particularly time series market data, showing changes since the publication of the most recent Instrument. We have prepared the tables and figures in each of the Annual Updates using our existing calculation approaches, as used to inform the most recent Instrument, so that stakeholders can compare changes in market data on a consistent basis.
The first annual update was published on 7 December 2023.
2026 RORI review
The 2026 RORI review formally started on 4 August 2025 with the release of an AER discussion paper. We expect to make the 2026 RORI in December 2026, applying to our network revenue determinations thereafter.