In accordance with Chapters 6 and 6A of the National Electricity Rules (NER) the AER is currently conducting its review of the Weighted Average Cost of Capital (WACC) parameters to apply to electricity transmission and distribution network service providers (‘WACC review’). Under the NER, for both electricity transmission and distribution, the AER is required to conclude its WACC review with the release of a final decision by 31 March 2009.
Given the large volume of submissions to the AER’s Explanatory Statement and the complexity of the issues raised, the AER has submitted a rule change proposal to the Australian Energy Market Commission proposing that the date for release of the final decision be extended until 1 May 2009. The proposed extension will ensure that the AER can properly consider all issues in forming its final decision in accordance with its obligations under the NER and the National Electricity Law.