The Rate of Return Instrument (RORI) specifies how the AER will determine the allowed rate of return on capital invested in regulated electricity and gas networks which commence their regulatory control period during the 4-year period following its release. It specifies the way to calculate the rate of return on capital and value of imputation credits, expressed as mathematical formulae, and how we will obtain inputs for those formulae. It is binding on network businesses and the AER.
The 2026 Rate of Return Instrument review will formally start in July 2025. We expect to make the 2026 Rate of Return Instrument in December 2026, applying to our network revenue determinations thereafter. An indicative review timeline is set out below.
Key milestone | Indicative date |
| 2026 RORI review process paper – published (for information) | 28 March 2025 |
| 2026 RORI discussion paper – publish (submissions invited) | July 2025 |
| Public forum on AER discussion paper | August 2025 |
| Eligible Experts’ report – publish (submissions invited) | October 2025 |
| Submissions close on AER discussion paper and Eligible Experts’ report | November 2025 |
| Draft 2026 RORI & Explanatory Statement – publish (submissions invited) | April 2026 |
| Public forum on draft 2026 RORI | April 2026 |
| Independent Panel’s report – publish (for information) | June 2026 |
| Submissions close on draft 2026 RORI & Explanatory Statement | June 2026 |
| Final 2026 RORI & Explanatory Statement – publish | December 2026 |