The AER today released an issues paper on implementing the approach for estimating the return on debt outlined in its rate of return guideline. The guideline is part of our Better Regulation program and sets out how we intend to apply the new rules framework to set rates of return for electricity and gas service providers, in order to promote the long term interests of consumers.
The return on debt is an important component of the rate of return. This issues paper seeks submissions on which third party data service provider we should use to estimate the return on debt. It also discusses potential implementation issues specific to the data series published by the Reserve Bank of Australia.
Invitation for submissions
Interested parties are invited to make written submissions to the AER regarding this issues paper by the close of business, 19 May 2014.
Submissions should be sent electronically to: rateofreturn
aer [dot] gov [dot] au.
We will consider and respond to submissions on this issues paper in the context of our upcoming regulatory determinations. The first such determinations are those for the NSW and ACT electricity distribution networks, and the NSW and Tasmanian electricity transmission networks.
We prefer that all submissions be sent in an electronic format in Microsoft Word (or another text readable document form) and publicly available, to facilitate an informed, transparent and robust consultation process. Accordingly, submissions will be treated as public documents and posted on our website, unless prior arrangements are made with us to treat the submission, or portions of it, as confidential. Those wishing to submit confidential information are requested to:
- clearly identify the information that is the subject of the confidentiality claim; and
- provide a non-confidential version of the submission.