The Australian Energy Regulator (AER) has today released a consultation paper for the proposed amendment to the 2022 Rate of Return Instrument (the Instrument).
This proposed amendment is required due to a data source prescribed in the Instrument becoming unavailable. Specifically, the Reserve Bank of Australia's (RBA)'s F16 data series, Indicative Mid Rates of Australian Government Securities, which was removed from the RBA’s website on 31 March 2023.
The consultation paper outlines the issue presented by the removal of the F16 data series, the legal powers used to amend the Instrument and our preferred alternative data sources.
In considering the amendment process, we note that the inclusion of the RBA’s F16 data series as the source for Commonwealth Government Security (CGS) yields was not a contested or controversial issue during the development of the 2022 Instrument and this amendment is driven by unique circumstances. Hence, we do not consider re-opening a comprehensive consultative process is necessary but acknowledge the importance of having a targeted consultation on this matter.
Invitation for submissions
Interested stakeholders are invited to make a submission on the proposed amendment by 30 June 2023.
Written submissions or a request to make a submission via alternative methods (e.g., through a meeting with AER staff) should be emailed to RateOfReturn
aer [dot] gov [dot] au (RateOfReturn[at]aer[dot]gov[dot]au).