Consultation paper
Back to topOn 4 November 2019 the AER released a consultation paper that proposed a pathway to the 2022 rate of return instrument, together with a report by The Brattle Group summarising stakeholder feedback on the process used to set the 2018 rate of return instrument.
The consultation paper:
- Has an explicit focus on the decision making process, not the content of the instrument.
- Provides a high-level outline of the decision making stages and our proposed timelines for them.
- Outlines high-level roles for various entities involved in the consultation and review process.
- Describes key elements of the process to the 2022 review and the high-level purpose for each.
| Documents (2) | Author |
|---|---|
| The Brattle Group - Stakeholder Feedback on the AERs Process for the 2018 Rate of Return Instrument ( PDF 1.07 MB ) | The Brattle Group |
| AER Consultation Paper - Pathway to 2022 Rate of Return Instrument - November 2019 ( PDF 402.03 KB ) | AER |
Submissions
Back to topWe invited stakeholder feedback on the consultation paper. This process also allowed comments in response to the December 2019 annual update. The period for submissions has now closed.
Position paper
Back to topOn 29 May 2020 the AER released a position paper that set out a pathway to the 2022 rate of return instrument.
The position paper:
- Has an explicit focus on the decision making process, not the content of the instrument.
- Highlights and explains changes made from the 2018 review process.
- Provides a high-level outline and timeline for decision making stages.
| Documents (1) | Author |
|---|---|
| Pathway to 2022 rate of return instrument - Position paper - May 2020 - Final ( PDF 462.74 KB ) | AER |
Consultation - Working Papers
Back to topOur pathway to 2022 includes a series of working papers in advance of the main phase of the review. These working papers explore key elements of the rate of return and lay a foundation for the development of the 2022 instrument. Each working paper has its own project page on the AER website.
The current schedule for working papers is:
- Energy network debt data – debt term and extension of debt index. Draft working paper was released on 26 June 2020 and submissions are open until 14 August 2020.
- CAPM and alternative return on equity models. Draft working paper to be released in August 2020, followed by a submission period.
- International regulatory approaches to rate of return. Draft working paper to be released in August 2020, followed by a submission period.
- Rate of return and cashflow in low return conditions. Commencing Q4 2020.