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Amendments to 2022 Gas Rate of Return Instrument for cessation of data source

The gas instrument sets out the ERA’s determination of the allowed rate of return on capital for regulated gas network service providers in Western Australia. The rate of return provides an allowance to service providers to help pay interest on loans and give a return on equity to investors.

The ERA utilises different data sources for market returns and information in implementing the gas instrument. For the purposes of calculating the risk free rate and inflation, the gas instrument utilises data sources from the Reserve Bank of Australia (RBA); specifically, the RBA’s F16 statistical table, Indicative Mid Rates of Australian Government Securities.

On 31 March 2023 the RBA ceased publishing the F16 statistical table. Accordingly, this table could not be relied upon as a source for calculating the risk free rate and expected inflation rate.

On 12 September 2023 the rate of return instrument was amended due to the cessation of the RBA F16 Statistical Table. A track changes version of the amended instrument and an explanatory note for this amendment has been published.

The explanatory statement published on 16 December 2022 was not affected by this amendment.

Papers

Date  Documents File type
12-Sep-23 2022 Final Gas Rate of Return Instrument (September 2023 amendments) Adobe PDF 413 kB
12-Sep-23
2022 Final Gas Rate of Return Instrument (September 2023 amendments tracked changes) Adobe PDF 841 kB
12-Sep-23
2022 Gas Rate of Return Instrument Update Explanatory Note September 2023 Adobe PDF 843 kB
28-Jun-23 Proposed amendments to 2022 Gas Rate of Return Instrument for data source cessation
Adobe PDF 281 kB

Public submissions

Date  Documents File type
22-Aug-23 Alinta submission to consultation paper for proposed amendments Adobe PDF 104 kB
22-Aug-23 ATCO submission to consultation paper for proposed amendments Adobe PDF 115 kB
22-Aug-23 DBP submission to consultation paper for proposed amendments
Adobe PDF 214 kB
22-Aug-23 GGT submission to consultation paper for proposed amendments Adobe PDF 281 kB
22-Aug-23 Synergy submission to consultation paper for proposed amendments Adobe PDF 92 kB
Page last updated: 12 Sep 2023