The AER initiated a review of the rate of return guideline on 31 July 2017 by publishing our consultation paper on the process for reviewing the rate of return guideline. Contributions from investors and other stakeholders are a central part of our process – we recognise that the decisions we make and the actions we take in performing our regulatory roles and other activities affect a wide range of individuals, businesses and organisations.

To this end, we established several consultation groups including the investor reference group, retailer reference group and the consumer reference group to assist in the review process.

The role of the IRG is to provide direct and ongoing feedback to the AER during guideline development, and to facilitate broader stakeholder participation and engagement. IRG members attended discussions with AER staff, provided submissions on our issues papers and draft decision, and contributed to our workshops and forums.

The IRG is made up of:

• Sally McMahon, Spark Infrastructure
• Kieran Zubrinich, Macquarie Infrastructure
• Josh Crane, IFM Investors
• Rob Koh, Morgan Stanley
• James Byrne, Citi Group
• Derek Chu, Australian Super
• Stasha Prnjatovic, AMP Capital
• Matthew Spence, Uni Super
• David Costello, Magellan
• John Ivulich, ATCO Australia
• Mike Williamson, SP Group
• Mark Busuttil, JP Morgan
• John Hirjee, Senior Australian Energy & Utilities
• Bruce Du, Investors Mutual
• Veeral Kanji, Global Infrastructure Partners
• Michael Faulkner, Morrison & Co

The role of the RRG is to provide direct and ongoing feedback to the AER during guideline development, and to facilitate broader stakeholder participation and engagement. RRG members attended discussions with AER staff, provided submissions on our issues papers and draft decision, and contributed to our workshops and forums.

The RRG is made up of:

• David Markham, Australian Energy Council
• Sean Greenup, Origin Energy
• Patrick Whish-Wilson, AGL
• Kerryn Graham, Energy Australia
• Haiden Jones, Powershop

The role of the CRG is to provide direct and ongoing feedback to the AER during guideline development, and to facilitate broader consumer participation and engagement. CRG members attended discussions with AER staff, provided submissions on our issues papers and draft decision, and contributed to our workshops and forums.

The CRG is made up of:

• John Devereaux, Tasmanian Small Business Council (Goanna Energy), Chair
• Robyn Robison, COTA Australia, Deputy Chair
• Warren Males, CANEGROWERS
• Ash Saladini, NSW Farmers Federation
• Miyuru Ediriweera, PIAC
• David Havyatt, Energy Consumers Australia
• David Headberry, MEU
• Mark Henley, Uniting Communities
• Mark Grenning, EUAA
• Heather I’Anson, SA Farmers’ Federation
• Chris Joseph
• Ian McAuley, CARE ACT
• Kym Mercer, Anti-Poverty Network SA
• Brendon Radford, National Seniors
• Jo De Silva, South Australian Council of Social Service

Below is a list of documents that have been produced throughout the CRG process, they are grouped into the following categories:

1. AER content circulated to the CRG
2. Agendas, summaries and minutes of meetings
3. CRG circulated content
4. ENA content circulated to the AER and CRG.

The Consumer Reference Group requested that we back-cast Figure 6 from page 55 of our Draft Guideline explanatory statement. This is a comparison of the equity risk premium (ERP) to the debt risk premium (DRP) through time. We have done this. In doing this we have updated it for revised RBA data and continued it to the end of August 2018. We have also added an extra line on the chart approximately reflecting the DRP through time calculated using our 2018 draft guideline debt approach. The notes under the chart provide further explanation.

We established a CCP subpanel (CCP16) to advise and inform the AER during the Rate of Return review process.