The Rate of Return Instrument sets out the ERA's approach under the National Gas Law for determining the rate of return for gas transmission pipelines and distribution networks.
The gas rate of return instrument is used to estimate the allowed rate of return for regulated gas transmission and distribution service providers in Western Australia. The rate of return provides service providers with the funding to pay interest on any loans and give a return on equity to investors.
The amended 2022 gas rate of return instrument is the current instrument that is in place.
The ERA is required to review the instrument every four years. The ERA will shortly commence the 2026 gas rate of return instrument review.