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ARTICLE · 28 JANUARY 2013

Energy regulators commence rate of return review processes

DLA Piper Australia
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The update highlights regulatory changes and approaches proposed in the AER Issues Paper and the ERA Consultation Paper.

AustraliaEnergy and Natural Resources
Simon Uthmeyer
Simon Uthmeyer
Fleur Gibbons
Fleur Gibbons
Leanne Hanna
Leanne Hanna
Nadia Cooke
Nadia Cooke

With recent changes to the rate of return provisions in the energy regulatory frameworks, 1 the Australian Energy Regulator (AER) and Economic Regulation Authority of Western Australia (ERA) (responsible for regulation of certain gas pipelines in Western Australia) are considering significant changes to the way in which they determine the allowed rate of return for electricity and gas businesses. This update highlights:

  • The key change to the regulatory framework
  • The proposed approach of the regulators as described in the AER's Rate of Return Guidelines Issues Paper, December 2012 (Issues Paper)2 and the ERA's Consultation Paper on the Guidelines for the Rate of Return for Gas Transmission and Distribution Networks, 21 December 2012 (Consultation Paper).3

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