The AER invites stakeholder submissions on a discussion paper released today to commence the 2026 Rate of Return Instrument (RORI) review.
The 2026 RORI, which we expect to make in December 2026, will build on extensive past analyses and consultations undertaken for the 2018 and 2022 iterations of the Instrument. This provides a stable foundation for a more targeted and efficient approach in the review, which aims to deliver a less onerous process for all interested parties.
For the 2026 RORI review, we propose to continue targeted work on a limited number of key topics, as set out in the discussion paper. These topics reflect the recommendations of the Independent Panel to the previous review, past stakeholder feedback and our own view considering evolving market conditions. We are interested in stakeholder views on these topics and welcome suggestions on whether any other issues warrant further analysis, particularly where new theoretical or empirical evidence has emerged.
National energy laws require the AER to make a RORI every four years. The RORI specifies how the AER will determine the allowed rate of return on capital invested in regulated electricity and gas networks. It is binding on energy network businesses and the AER.
Written submissions on the discussion paper are due by 28 November 2025 and should be emailed to RateOfReturn
aer [dot] gov [dot] au (RateOfReturn[at]aer[dot]gov[dot]au). Prior to this, we would also be interested in meeting with individual stakeholders to clarify any issues regarding the paper and to receive early feedback.
We will also hold an online public forum on the discussion paper on 26 August 2025. Please register your attendance.