This submission responds to the Australian Energy Regulator’s (AER) Rate of Return Guideline Issues Paper. The development of the rate of return guideline is part of the AER’s Better Regulation process, which aims to implement the changes to the National Electricity and Gas Rules that were published by the Australian Energy Market Commission in November 2012. The key issue covered in this submission is the optional nature of the rate of return guideline, a status about which PIAC has significant concerns. The submission also covers topics including: the importance of the guideline to consumers, given the way the rate of return flows through to network prices; the need to refocus network regulation, the National Electricity Objective and National Gas Objective on the long-term interests of consumers; and the concept of a benchmark efficient entity when determining the weighted average cost of capital (WACC).
Related Media Releases & Coverage
- 9 Sep 20222SER interview: energy reliability
- 24 Aug 20222SER interview: everyone deserves a healthy home
- 28 Jun 2022Does Australia need Tasmania to become a multi-billion-dollar 'Battery of the Nation'?
- 23 Jun 2022AUDIO: Calls for energy businesses to operate in good faith
- 19 Jun 2022‘The prices are so much more’: how apartment dwellers get locked into bad power deals