The Australian Energy Regulator (AER) has today released the final working paper for the Term of the rate of return & Rate of return and cashflows in a low interest rate environment, another key document in the AER’s pathway to the 2022 rate of return instrument review.
The final working paper, which has been informed by public consultation, has two parts:
- The Term of the rate of return analyses the evidence currently available, considers the issue of a suitable term for the rate of return and outlines the AER’s thinking on the term for the rate of return.
- The Rate of return and cashflows in a low interest rate environment considers the consequences of lower interest rates and whether we need to adjust our approach.
The working paper will assist us to set a rate of return that contributes to the achievement of the National Electricity Objective and the National Gas Objective to promote efficient investment and efficient operation of energy services in the long-term interest of consumers.