In line with Essential Energy’s enforceable undertaking that we accepted on 16 May 2016 and our final decision on Essential Energy’s electricity distribution network, which operates under that undertaking, we have updated Essential Energy’s return on debt for 2016–17 under NER cl 6.5.2(l).

As a result of this update, the return on debt for 2016–17 is 6.25 per cent. This results in an X-factor for 2016–17 of 0.21 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.

The revised PTRM shows the updated X-factor.

In line with Essential Energy’s enforceable undertaking that we accepted on 8 May 2017 and our final decision on Essential Energy’s electricity distribution network, which operates under that undertaking, we have updated Essential Energy’s return on debt for 2017–18 under NER cl 6.5.2(l).

As a result of this update, the return on debt for 2017–18 is 6.10 per cent. This results in an X-factor for 2017–18 of –0.26 per cent. Holding other things constant, a positive X-factor implies a real revenue decrease and a negative X-factor implies a real revenue increase.

The revised PTRM shows the updated X-factor.