Rate of Return Instrument 2022

The Rate of Return Instrument (the Instrument) sets out the approach by which we will estimate the rate of return, and comprises the return on debt and the return on equity, as well as the value of imputation credits. We publish a new Instrument every 4 years, the next is to be published in 2022 and will bind all regulatory determinations in the subsequent 4 years.

Notice

14 November 2022 - The AER has decided to delay the publication of the 2022 Rate of Return Instrument until February 2023. The delay will allow us to consider the submissions made in the final instrument and avoid closing off options currently available. The 2018 Rate of Return Instrument remains in force until it is replaced. However, publishing the new instrument in February 2023 will allow it to apply to our next set of regulatory decisions in April 2023.

Our pathway to the new Instrument includes a series of working papers in advance of the main phase of the review and also sets out the role for stakeholder reference groups in our review.

An Independent Panel will support the AER to make the best possible instrument by reviewing the draft Instrument and the information available to us in drafting the Instrument. We will also release an annual update at the end of each year. The review will be informed by significant contribution from stakeholder reference groups: the Consumer Reference Group, our Investor Reference Group and our Retailer Reference Group.