Sector:
Segment:
Category:
Rate of return
Region:
Status:
Date initiated:
4 November 2019
Date completed:
24 February 2023
Effective date:
25 February 2023
Contact:
General enquiries - Rate of return RateOfReturn@aer.gov.au
AER reference:
65402
Overview
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 that will bind all regulatory determinations in the subsequent 4 years.
On 24 February 2023 the AER published its final decision on its Rate of Return review. The final decision includes the Rate of Return Instrument and Explanatory Statement.
Our pathway to the new Instrument included a series of working papers in advance of the main phase of the review, these papers are listed below.
| Topic | Draft working paper | Final working paper |
|---|---|---|
| Energy network debt data | 26 June 2020 | 18 November 2020 |
| International regulatory approaches to the rate of return | 27 August 2020 | 16 December 2020 |
| CAPM and alternative return on equity models | 27 August 2020 | 16 December 2020 |
| Topic | Draft working paper | Final working paper |
|---|---|---|
| Term of the rate of return | 21 May 2021 | 22 September 2021 |
| Rate of return and cashflows in a low interest rate environment | 21 May 2021 | 22 September 2021 |
| Rate of Return Omnibus Papers | 15 July 2021 | 9 December 2021 |