The Rate of Return Instrument sets out the ERA's approach under the National Gas Rules for determining the rate of return for gas transmission pipelines and distribution networks.
Current Gas Rate of Return Instrument
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 ERA published its current gas instrument, the 2018 Final Rate of Return Guidelines, on 18 December 2018.
In April 2019, the Western Australian NGL was revised and the 2018 gas rate of return guidelines became mandatory (becoming the 2018 gas rate of return instrument).
The 2018 gas rate of return instrument set out the method the ERA uses to estimate the allowed rate of return for gas transmission and distribution service providers.
Details on the current rate of return instrument are available on the 2018 Gas Rate of Return Instrument webpage.
2022 Gas Rate of Return Instrument Review
The National Gas Rules require the ERA to review the instrument periodically.
The ERA is currently undertaking a review of the gas rate of return instrument and will publish a new instrument in December 2022.
Further details are available on the 2022 Gas Rate of Return Instrument Review webpage.