For Western Australia’s regulated gas pipelines, the ERA determines an allowed rate of return on service providers’ projected capital bases as part of setting regulated revenues for an access arrangement.
The National Gas Law requires the ERA to produce a gas rate of return instrument setting out how the ERA and regulated entities will calculate the rate of return for the duration of the instrument.
The ERA is required to review the gas instrument and replace it every four years.
The ERA published a draft gas rate of return instrument on 28 July 2026 that sets out the ERA’s draft position on determining the allowed rate of return on capital.
The ERA will consider the Independent Panel’s report and stakeholder submissions in developing the final gas rate of return instrument.
Public submissions received in response to the draft Gas Instrument and the Independent Panel report
The ERA invites interested parties to make submissions on the 2026 draft gas instrument and explanatory statement and the Independent Panel report.
2026 Draft Gas Rate of Return Instrument and Explanatory Statement
The ERA has published the 2026 Draft Gas Rate of Return Instrument and accompanying Explanatory Statement attachments for the 2026 Draft Gas Rate of Return Instrument. The draft gas instrument sets out the ERA’s draft position on determining the allowed rate of return on capital for regulated gas network service providers in Western Australia. The explanatory statement attachments provide the ERA’s reasoning supporting the positions set out in the draft gas instrument.
The 2026 draft gas instrument and accompanying explanatory statement will be subject to a review by the Independent Panel. The Independent Panel Report will be published when it becomes available.
Public submissions received in response to Discussion paper
The ERA invited interested parties to make submissions on the rate of return discussion paper.
Discussion paper
On 23 October 2025, the ERA published a discussion paper outlining its working views on the method for calculating the allowed rate of return on capital for service providers for the 2026 gas instrument.
Engagement process paper
On 3 October 2025, the ERA published an engagement process paper detailing its planned approach to fulfilling the consultation requirements for producing the 2026 gas instrument.
The ERA is seeking stakeholder nominations of potential members for a Consumer Reference Group and an Independent Panel. Further detail on these bodies is provided in the engagement process paper.