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2012 Gas Rate of Return Guidelines Review

The Rate of Return Guidelines set out the ERA's approach under the National Gas Rules for determining the rate of return for gas transmission pipelines and distribution networks. The 2013 guideline was the first to be produced by the ERA.

Public Submissions

Date Documents File type
19-Nov-13
Public submission - development of the Rate of Return Guidelines - Alinta Energy
Adobe PDF 278 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - GGT
Adobe PDF 3 MB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - Water Corporation
Adobe PDF 125 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - Wesfarmers Chemicals, Energy & Fertilisers
Adobe PDF 173 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - WA Treasury Corporation
Adobe PDF 586 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - Dampier Bunbury Pipeline
Adobe PDF 493 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - ATCO Gas Australia
Adobe PDF 301 kB
19-Nov-13
Public submission - development of the Rate of Return Guidelines - United Energy and Multinet Gas
Adobe PDF 74 kB
6-Nov-13 Supplementary Letter and Materials  - Energy Networks Association
Adobe PDF 101 kB
Appendix A - ENA Response to Draft AER Rate of Return Guidelines
Adobe PDF1.3 MB
Appendix B - ENA - Awarding of Nobel Prize to Eugene Fama for Asset Pricing  Adobe PDF 41 kB 
Appendix C - Nobel Prize Background Paper Understanding Asset Prices  Adobe PDF 898 kB 
Appendix D - Jonesday External Memorandum - Envestra Case  Adobe PDF 219 kB 
Attachment 1 - NERA Report - Fama-French Model  Adobe PDF 725 kB
Attachment 2 - SFG Report - Reconciliation of DDM estimates  Adobe PDF 922 kB
Attachment 3 - NERA Report - The Market Risk Premium  Adobe PDF 770 kB
Attachment 4 - NERA Report - Imputation Credits and Equity Prices  Adobe PDF 667 kB
Attachment 5 - SFG Report - Using Market Data to Estimate Value of Distributed Credits
Adobe PDF 306 kB
Attachment 6 - Hathaway Capital Research - Imputation Credit Redemption ATO Data
Adobe PDF 3 MB 
Attachment 7 - PWC Letter - Response to Criticism of CEG-PWC Report Adobe PDF351 kB 
Attachment 9 - CEG Report - Mechanistic Cost of Debt Extrapolation
Adobe PDF474 kB 
Attachment 10 - CEG Report - Review of Lally and Chairmont Reports  Adobe PDF 357 kB
7-Oct-13 Public Submission - DBP - Draft Rate of Return Guidelines
Adobe PDF 1.9 MB
ACIL-Allen Efficiency Study
Adobe PDF 855 kB
SFG BETA Study Adobe PDF 812 kB
CEG BETA Study
Adobe PDF 710 kB
CEG Credit Risk Study
Adobe PDF 594 kB
7-Oct-13 United Energy and Multinet Gas - Review of Competition Economist's Group Report Estimating the debt risk premium
Adobe PDF 627 kB
United Energy and Multinet Gas - ESQUANT Statistical Consulting Report
Adobe PDF 1.5 MB
United Energy and Multinet Gas - Capital Research Report
Adobe PDF 2 MB
7-Oct-13 Public Submission - Western Australian Treasury Corporation (WATC) - Draft Rate of Return Guidelines
Adobe PDF 890 kB
7-Oct-13 Public Submission - Water Corporation - Draft Rate of Return Guidelines
Adobe PDF 252 kB 
7-Oct-13 Public Submission - Goldfields Gas Transmission (GGT) - Draft Rate of Return Guidelines
Adobe PDF 2 MB
7-Oct-13 Public Submission - DUET Group - Draft Rate of Return Guidelines
Adobe PDF 1.2 MB
7-Oct-13 Public Submission - Australian Pipeline Industry Association (APIA) - Draft Rate of Return Guidelines
Adobe PDF 433 kB
7-Oct-13 Public Submission - ATCO Gas Australia - Draft Rate of Return Guidelines
Adobe PDF 1.9 MB
7-Oct-13 Public Submission - APA Group - Draft Rate of Return Guidelines
Adobe PDF 4 MB
7-Oct-13 Public Submission - Energy Networks Association - Draft Rate of Return Guidelines
Adobe PDF 972 kB
Review of Cost of Equity Models
Adobe PDF 1 MB
Estimates of the Zero-Beta Premium
Adobe PDF 1 MB
Dividend discount model estimates of the cost of equity
Adobe PDF 1 MB
Evidence on the required return on equity from independent expert reports
Adobe PDF 827 kB
Estimating the return on the market
Adobe PDF 770 kB
Estimating E[Rm]: in the context of recent regulatory debate
Adobe PDF 2 MB
Regression-based estimates of risk parameters for the benchmark firm
Adobe PDF 446 kB
The Vasicek adjustment to beta estimates in the Capital Asset Pricing Model
Adobe PDF 343 kB
Information on equity beta from US companies
Adobe PDF 1.9 MB
Comparison of OLS and LAD regression techniques for estimating beta
Adobe PDF 298 kB
Assessing the reliability of regression-based estimates of risk
Adobe PDF 414 kB
The Payout Ratio
Adobe PDF 668 kB
Updated dividend drop-off estimate of theta
Adobe PDF 544 kB 
Term of the risk free rate for the cost of equity
Adobe PDF 1 MB
The Market, Size and Value Premiums
Adobe PDF 1 MB
Credit Ratings for Regulated Energy Network Services Businesses
Adobe PDF 844 kB
Debt strategies of utility businesses
Adobe PDF 1 MB
Estimating the debt risk premium
Adobe PDF 3 MB
Energy Networks Association: Debt financing costs
Adobe PDF 497 kB
Energy Networks Association: Benchmark term of debt assumption
Adobe PDF 385 kB
Energy Networks Association: Potential impact of the ERA’s DRP methodology
Adobe PDF 537 kB
1-Aug-13 Public Submission - Western Australian Treasury Corporation - Cost of Debt working paper
Adobe PDF 266 kB
1-Aug-13 Public Submission - DBNGP (WA) Transmission Pty Limited - Cost of Debt working paper
Adobe PDF 429 kB
1-Aug-13 Public Submission - APA Group - Cost of Debt working paper
Adobe PDF 113 kB
1-Aug-13 Public Submission - Goldfields Gas Transmission Pty Ltd - Cost of Debt working paper
Adobe PDF 4 MB
21-Mar-13 Public Submission - WA Treasury Corporation
Adobe PDF 2.4 MB
13-Mar-13 Public Submission - Western Australian Major Energy Users Group
Adobe PDF 373 kB
13-Mar-13 Public Submission - Energy Networks Association (ENA)
Adobe PDF 208 kB
13-Mar-13 Public Submission - Wesfarmers Chemicals, Energy & Fertilisers
Adobe PDF 3.7 MB
13-Mar-13 Public Submission - The Australian Pipeline Industry Association (APIA)
Adobe PDF 3.1 MB
13-Mar-13 Public Submission - ATCO Gas Australia
Adobe PDF 1.9 MB
13-Mar-13 Public Submission - United Energy and Multinet Gas
Adobe PDF 1 MB
13-Mar-13 Public Submission - Goldfields Gas Transmission Pty Ltd
Adobe PDF 5.1 MB
13-Mar-13 Public Submission - APA Group
Adobe PDF 113 kB
13-Mar-13 Public Submission - United Energy and Multinet Gas
Adobe PDF 300 kB
13-Mar-13 Public Submission - DBP
Adobe PDF 6.04 MB

Rate of Return Guidelines

Public Submissions

Date Documents File type
19-Nov-13 Public submission - development of the Rate of Return Guidelines - Alinta Energy
Adobe PDF 278 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - ATCO Gas Australia
Adobe PDF 300 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - Dampier Bunbury Pipeline
Adobe PDF 492 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - GGT
Adobe PDF 3 MB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - United Energy and Multinet Gas
Adobe PDF 73 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - WA Treasury Corporation
Adobe PDF 585 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - Water Corporation
Adobe PDF 125 kB

19-Nov-13 Public submission - development of the Rate of Return Guidelines - Wesfarmers Chemicals, Energy & Fertilisers
Adobe PDF 173 kB

07-Nov-13 Attachment A - ENA Response to Draft AER Rate of Return Guideline
Adobe PDF 1 MB

07-Nov-13 Attachment B - ENA - Awarding of Nobel Prize to Eugene Fama for Asset Pricing
Adobe PDF 41 kB

07-Nov-13 Attachment C - Nobel Prize Background Paper Understanding Asset Prices
Adobe PDF 898 kB

07-Nov-13 Energy Networks Association - Letter
Adobe PDF 101 kB

01-Aug-13 Public Submission - APA Group - Rate of Return Guidelines Review
Adobe PDF 112 kB

01-Aug-13 Public Submission - DBNGP (WA) Transmission Pty Limited - Rate of Return Guidelines Review
Adobe PDF 428 kB

01-Aug-13 Public Submission - Goldfields Gas Transmission Pty Ltd - Rate of Return Guidelines Review
Adobe PDF 4 MB

01-Aug-13 Public Submission - Western Australian Treasury Corporation - Rate of Return Guidelines Review
Adobe PDF 265 kB

21-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks Issues Paper - WA Treasury Corporation
Adobe PDF 2 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - APA Group
Adobe PDF 113 kB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - ATCO Gas Australia
Adobe PDF 2 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - DBP
Adobe PDF 6 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Energy Networks Association (ENA)
Adobe PDF 207 kB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Goldfields Gas Transmission Pty Ltd
Adobe PDF 5 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - United Energy and Multinet Gas
Adobe PDF 1 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - United Energy and Multinet Gas
Adobe PDF 301 kB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Wesfarmers Chemicals, Energy & Fertilisers
Adobe PDF 4 MB

13-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - Western Australian Major Energy Users Group
Adobe PDF 372 kB

12-Mar-13 Public Submission - Guidelines for the Rate of Return for Gas Transmission and Distribution Networks - The Australian Pipeline Industry Association (APIA)
Adobe PDF 3 MB

Public Submissions received in response to Draft Guidelines

Date Documents File type
06-Nov-13 Appendix D - Jonesday External Memorandum - Envestra Case
Adobe PDF 219 kB

06-Nov-13 Attachment 1 - NERA Report - Fama-French Model
Adobe PDF 725 kB

06-Nov-13 Attachment 10 - CEG Report - Review of Lally and Chairmont Reports
Adobe PDF 356 kB

06-Nov-13 Attachment 2 - SFG Report - Reconciliation of DDM estimates
Adobe PDF 921 kB

06-Nov-13 Attachment 3 - NERA Report - The Market Risk Premium
Adobe PDF 769 kB

06-Nov-13 Attachment 4 - NERA Report - Imputation Credits and Equity Prices
Adobe PDF 666 kB

06-Nov-13 Attachment 5 - SFG Report - Using Market Data to Estimate Value of Distributed Credits
Adobe PDF 305 kB

06-Nov-13 Attachment 6 - Hathaway Capital Research - Imputation Credit Redemption ATO Data
Adobe PDF 3 MB

06-Nov-13 Attachment 7 - PWC Letter - Response to Criticism of CEG-PWC Report
Adobe PDF 350 kB

06-Nov-13 Attachment 9 - CEG Report - Mechanistic Cost of Debt Extrapolation
Adobe PDF 474 kB

05-Nov-13 workshop agenda
Adobe PDF 89 kB

07-Oct-13 DBP - ACIL Allen Efficiency Study
Adobe PDF 854 kB

07-Oct-13 DBP - CEG Beta Study
Adobe PDF 812 kB

07-Oct-13 DBP - CEG Credit Ratings Study
Adobe PDF 709 kB

07-Oct-13 DBP - cover letter and submission
Adobe PDF 2 MB

07-Oct-13 DBP - SFG Beta Study
Adobe PDF 593 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 1 - Alternative Cost of Equity Models
Adobe PDF 1 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 10 - OLS and LAD Estimation
Adobe PDF 297 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 11 - Beta Reliability
Adobe PDF 414 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 12 - Payout Ratio
Adobe PDF 667 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 13 - Dividend Dropoff Study
Adobe PDF 544 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 14 - Term of the Risk Free Rate
Adobe PDF 1 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 15 - ENAMRP Report
Adobe PDF 2 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 16 - Credit Ratings for NSPs
Adobe PDF 843 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 17 - Debt strategies report
Adobe PDF 1 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 18 - Estimating the Debt Risk Premium
Adobe PDF 4 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 19 - Debt Raising and Refinancing Costs
Adobe PDF 497 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 2 - Black CAPM Zero Beta Estimate
Adobe PDF 1,021 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 20 - Benchmark Term of Debt
Adobe PDF 384 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 21 - Potential Impact of ERA's DRP Methodology
Adobe PDF 536 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 3 - DGM Estimate
Adobe PDF 1 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 4 - Use of Independent Expert Reports
Adobe PDF 827 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 5 - Expected Return on the Market
Adobe PDF 769 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 6 - Expected Return on the Market Companion Report
Adobe PDF 2 MB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 7 - Beta Parameter Estimates
Adobe PDF 445 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 8 - Vasicek Adjustment
Adobe PDF 342 kB

07-Oct-13 Energy Networks Association - Draft Rate of Return Guidelines - Report 9 - US Beta Comparables
Adobe PDF 2 MB

07-Oct-13 public submission - APA Group - draft rate of return guidelines
Adobe PDF 5 MB

07-Oct-13 Public submission - ATCO Gas Australia - draft rate of return guidelines
Adobe PDF 2 MB

07-Oct-13 Public Submission - Australian Pipeline Industry Association (APIA) - draft rate of return guidelines
Adobe PDF 433 kB

07-Oct-13 public submission - DUET Group + draft rate of return guidelines
Adobe PDF 1 MB

07-Oct-13 Public Submission - Energy Networks Association - Draft Rate of Return Guidelines
Adobe PDF 972 kB

07-Oct-13 public submission - Goldfields Gas Transmission (GGT) - Draft Rate of Return Guidelines
Adobe PDF 2 MB

07-Oct-13 Public submission - Water Corporation - draft rate of return guidelines
Adobe PDF 251 kB

07-Oct-13 Public Submission - Western Australian Treasury Corporation (WATC) - draft rate of return guidelines
Adobe PDF 890 kB

07-Oct-13 United Energy and Multinet Gas - Capital Research
Adobe PDF 2 MB

07-Oct-13 United Energy and Multinet Gas - ESQUANT Statistical Consulting
Adobe PDF 1 MB

07-Oct-13 United Energy and Multinet Gas - Review of Competition Economist's Group Report Estimating the debt risk premium - A Report for United Energy
Adobe PDF 627 kB

Page last updated: 13 Jul 2021