Type
Sector
Electricity
Gas
Segment
Distribution
Transmission
Issue date
AER reference
AC 161/17

To assist in the AER’s review of our rate of return guideline, we encourage interested retailers to participate in our planned retailer reference group (RRG).

Our rate of return guideline (Guideline) sets out the approach by which we will estimate the rate of return, and comprises the return on debt and the return on equity, as well as the value of imputation credits.

Estimation of the rate of return is complex, and the rate of return is a significant driver of regulated revenue. 

Role of the RRG

Network charges are a significant component of final retail energy bills. Energy retailers could provide valuable insight about estimation of the rate of return and on the process of implementing that rate of return in determinations and in annual pricing updates. It is also an opportunity for interested retailers to engage with AER staff.

Please contact us at rateofreturnataer [dot] gov [dot] au (rateofreturn[at]aer[dot]gov[dot]au) if you are interested in joining the RRG during the course of the review.