18IAER to make rate of return instrument

18I AER to make rate of return instrument

18I AER to make rate of return instrument

(1) This section applies if a rate of return on capital or the value of imputation credits is required for performing or exercising an AER economic regulatory function or power.

(2) The AER must make an instrument (a rate of return instrument) stating—

(a) for a rate of return on capital—the way to calculate the rate; and

(b) for the value of imputation credits—the value or the way to calculate the value.

(3) The AER may make an instrument only if satisfied the instrument will, or is most likely to, contribute to the achievement of the national electricity objective to the greatest degree.

(4) Subject to subsection (3), the way to calculate a rate of return on capital must include a weighted average of an allowed return on equity and an allowed return on debt.

(5) In making an instrument, the AER must have regard to—

(a) the revenue and pricing principles; and

(b) other information the AER considers appropriate.

pt 3, div 1B, sdivs 1–5 (ss 18F–18Y): Ins 2018 No 33, sec 6.