The Australian Energy Regulator (AER) is calling for submissions on a key component electricity and gas networks can include in their prices to recover capital investments.
Releasing its draft 2022 Rate of Return Instrument with an explanatory statement for consultation, the AER said the documents set out the approach by which it would estimate the rate of return, comprise the return on debt and equity, and the value of imputation credits.
“The draft instrument is largely consistent with the 2018 Instrument with only one substantive change to amend the term of the risk free rate (or term of equity) from 10 to five years,” the AER said.
“A summary of the draft decision, including tables comparing the 2018 Rate of the Return Instrument and this draft decision is set out in the explanatory statement,” it said.
“Stakeholders will have the opportunity to provide feedback on the draft instrument through written submissions as well a public forum ahead of the independent panel report, and a second public forum after close of submissions.”
The AER said the final Rate of Return Instrument would be published in December and, once finalised, would bind all regulatory determinations from 2023 for the next four years.
The Regulator said it would welcome submissions until 2 September, via email to [email protected].
The AER’s 26-page draft Rate of Return Instrument can be accessed at this PS News link and its 331-page explanatory statement at this link.
