In line with our final decision on CitiPower’s electricity distribution network, we have updated CitiPower’s return on debt for 2017 under NER cl 6.5.2(l).
As a result of this update, the return on debt for 2017 is 5.41 per cent. This results in an X-factor for 2017 of 0.40 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.
The revised PTRM shows the updated X-factor.
In line with our final decision on CitiPower's electricity distribution network, we have updated CitiPower's return on debt for 2018 under NER cl 6.5.2(l).
As a result of this update, the return on debt for 2018 is 5.33 per cent. This results in an X-factor for 2018 of -0.05 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.
The revised PTRM shows the updated X-factor.
On 15 December 2017 the AER wrote to CitiPower setting out how it proposed to correct a mathematical error in the inflation calculation in its 26 May 2016 decision.
Subject to considering submissions on our proposed correction, the AER is proposing to revoke the 26 May 2016 determination and substitute it with a new determination to correct the identified error under clause 6.13 of the NER by no later than 1 March 2018.
In line with our final decision on CitiPower's electricity distribution network, we have updated CitiPower's return on debt for 2019 under NER cl. 6.5.2(l).
As a result of this update, the return on debt for 2019 is 5.23 per cent. This results in an X-factor for 2019 of –0.12 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.
The revised PTRM shows the updated X-factor.
In line with our final decision on CitiPower's electricity distribution network, we have updated CitiPower's return on debt for 2020 under NER cl. 6.5.2(l).
As a result of this update, the return on debt for 2020 is 4.98 per cent. This results in an X-factor for 2020 of –1.88 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.
The revised PTRM shows the updated X-factor.